April 17, 2024

Ireland Unlikely To Approve Crypto-Based Retail Trading

Despite rumors that top crypto exchange, Binance, is trying to relocate its headquarters to Ireland, the nation’s authorities are still reluctant to approve a crypto-based retail investment fund. Ireland’s apex bank reiterates risky areas for financial service firms in a newly released report.

Why Bank Of Ireland May Not Approve Crypto-Based Retail Trading

The apex bank also stated that there had been an increase in the number of firms seeking approval for crypto-related alternative investment funds and UCITS (Undertakings for Collective Investment in Transferable Securities). But the bank confirmed that it wouldn’t approve these requests because investors need detailed education on determining the necessary risks associated with these kinds of investments.

Nevertheless, the bank disclosed that it might consider approving ETP suitable for institutional investors. Ireland is a popular destination for most international corporations. Some notable ones include HP, Google, IBM, and Apple. It is a proven fact that Ireland is the second-most attractive destination for direct foreign investment, with Singapore ranking first.

Until this time, Ireland’s crypto policies have been favorable to players in the crypto sector. The only issue that the apex bank emphasizes has always been proper oversight functions over the crypto industry.

The Base For Binance Headquarters

After obtaining licensing operations for three new business entities (especially Binance exchange) in Ireland, Binance CEO, CZ, claimed that his company could have its global headquarters in Ireland. In an interview with the Irish independent three months ago, CZ said, “we are known for not having a headquarter. But we are already in the process of identifying locations where we can establish a few ones.”

When the interviewer asked CZ whether Ireland is one of the locations in consideration, CZ replied in the affirmative but didn’t disclose any additional details. Binance successfully obtained licensing operations for its exchange platform, FinTech services, and asset management services.

Monitoring Crypto Ads

Following several complaints about the frequency of crypto ads and citizens’ exposure to them, Ireland’s advertising watchdog (the ASAI) has started monitoring crypto ads with the main aim of taking necessary steps as the UK has done.

Rishi Sunkak (UK’s exchequer chancellor) has proposed strict rules regarding the content of crypto ads, their duration, and where they can be displayed. Furthermore, the UK’s financial watchdog (the FCA) proposed that crypto advertisers must be vastly experienced; they must clear and visibly display the risks associated with crypto investments. They cannot run an affiliate program (where people can earn commissions or rewards for inviting others to join).

UK’s FCA hopes to release the approved crypto ad policy by summer 2022. Thus, many analysts suggest that Ireland is waiting for the UK’s resolution on this matter before issuing its own, which may likely be the same or be slightly modified. Compared to complaints received by UK’s FCA, the ASAI have had it easy regarding the number of received complaints about crypto ads. A recent survey by the top news outlet, the Guardian, revealed that 14 companies showed nearly 4K crypto ads to public commuters within six months of last year.

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