Ireland Declares That Retail Funds Will Not Be Available For The Crypto Market

<p>The Central Bank of Ireland has stated that retail investment funds will most likely not be allowed to gain direct or indirect exposure to cryptocurrencies. The bank's stance is motivated by the risks in the cryptocurrency market.</p> <p>The bank, on the other hand, believes that cryptocurrency is best suited for wholesale or professional investors who can properly assess the risk of the crypto market.</p> <p>Ireland has long been welcoming to the crypto industry, and it is one of the countries where Binance, the world's largest crypto exchange, intends to establish a headquarters.</p> <p>According to Ireland's Central Bank, cryptocurrency exposure is not yet appropriate for retail investors.</p> <p>The Central Bank of Ireland's second annual Securities Markets Risk Outlook Report included a statement on the retail status of cryptocurrency.</p> <p>The bank stated in the report that it has received numerous inquiries regarding whether Undertakings for Collective Investment in Transferable Securities (UCITS) or authorised investment funds (AIFs) – investment vehicles marketed to retail investors – can gain exposure to crypto-assets.</p> <p>According to the bank, at this time, the risks inherent in the cryptocurrency market would preclude such funds from gaining direct or indirect exposure to cryptocurrency.</p> <p>"At the moment, while such assets may be suitable for wholesale or professional investors," the report stated, "the Central Bank is highly unlikely to approve a UCITS or a Retail Investor AIF proposing any exposure (direct or indirect) to crypto-assets."</p> <p>The reasons for the stance include "specific risks associated with crypto-assets" and "the possibility that appropriate risk assessment" may be difficult for non-professional investors to undertake.</p> <p>Ireland is still willing to help the crypto industry by providing clarity.</p> <p>Ireland has been one of the countries with the most open policies towards cryptocurrency. The bank stated in the report that the industry's main limita