Ireland will have no crypto investment funds

The Central Bank of Ireland recently assured that it is unlikely that an investment fund for cryptocurrency retailers will be approved, due to the lack of knowledge to work with this type of asset.

In the report, published this month and entitled “Securities Markets Risk Outlook Report: A Changing Landscape“, digital assets are described as a new product offering within the stock markets, thus being a “potential threat to the protection of investors”.

Although the bank received many inquiries last year about alternative investment funds (AIFs) in relation to cryptocurrencies, it is not now expected to approve a cryptocurrency AIF for retail investors. The bank believes such investments “may be suitable for wholesale or professional investors” but are too complicated for smaller ones.

“It is highly unlikely that the Central Bank will approve a UCITS or AIF for retail investors that proposes any exposure to crypto assets, taking into account the specific risks linked to crypto assets and the possibility that proper risk assessment may be difficult for a retail investor without a high degree of experience,” says part of the report.

K. Tovar

Source: Cointelegraph