Dáil Éireann Debate, Tuesday - 9 November 2021
108. Deputy Neasa Hourigan asked the Minister for Finance the controls he can put in place in relation to the marketing of crypto assets ahead of any EU directives coming into force, for example, the Markets in Crypto-assets and amending directive; and if he will make a statement on the matter. [54117/21]
View answerThe Central Bank has issued warnings to consumers in 2017 and 2018, with the latest advice issued in April of 2021, on the risks of buying virtual currencies.
The Central Bank warnings outline the risks of buying or investing in “virtual currencies” (VCs): extreme volatility; absence of guarantees and safeguards associated with regulated financial services; and the possibility of losing all invested capital.
The warnings clearly state that virtual currencies such as Bitcoin and Ether have no legal tender status to be used as means of payment, and are not guaranteed or regulated by the Central Bank of Ireland, or any other central bank in the EU.
As of 23 April 2021, the providers of certain services in relation to virtual assets will have to meet anti-money laundering and countering of financing of terrorism (AML/CFT) obligations, under part 4 of the CJA 2010 to 2021.
All VASPs (virtual asset service providers) established in Ireland are required to register with the Central Bank for these AML/CFT purposes.
Finally, the Competition and Consumer Protection Commission also updated their advice on purchasing and investing in digital and cryptocurrencies during June of this year, clearly outlining the risks.
