Cryptocurrency Statement From The President of This Country’s Central Bank: ‘It Looks Like a Ponzi scheme!’

Ireland Central Bank Governor Gabriel Makhlouf, cryptocurrency He likened his investments to a pyramid scheme rather than an investment and said that consumers and investors pose risks that need to be protected.

Irish Central Bank Governor Makhlouf Compares Cryptocurrencies to Ponzi schemes

The EU passed legislation setting crypto regulations in April. Makhlouf called for rules to protect investors and consumers.

In a blog post, Makhlouf said there was an “urgent need for policy action” that protects investors and consumers across the European Union through “rigorous” regulation and welcomed new EU rules aimed at starting to do so.

The remarks added to criticism of the crypto market from central banks around the world, with the US Federal Reserve, the Bank of England, and the European Central Bank expressing concerns about the risks from digital currency trading leaking into the wider financial system.

BOE Vice President Jon Cunliffe stated that cryptocurrency is as dangerous as the mortgage market that triggered the global financial crisis more than a decade ago.

European lawmakers passed ambitious legislation last month that would introduce rules to the European Union to govern the crypto industry.

The EU’s green light for Crypto Asset Markets, or MiCA regulation, marks the first time governments have attempted to regulate the nascent industry at this scale, and several big players, including crypto exchange FTX, have followed suit.

*Not investment advice.