Gabriel Makhlouf, governor of the Central Bank of Ireland, has said that unsecured digital assets are more like a "Ponzi scheme than an investment" and present risks that consumers should protect themselves from.
According to him, there is an "urgent need for policy action" to achieve a "rigorous" regulatory regime to preserve the financial security of citizens.
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He has added:
"A regulatory regime that appropriately protects consumers and investors, preserves market integrity against fraud, manipulation and money laundering, and also safeguards financial stability, is an important next step."
Makhlouf has added the Central Bank of Ireland distinguishes between secure and non-secure cryptocurrencies. The agency is "open to the potential" of the former but skeptical of the latter.
He believes unsecured digital assets are not properly regulated and their purchase can lead to serious losses.