Central Bank warns of ‘too good to be true’ cryptocurrency investments

'While people may be attracted to these investments by the high returns advertised, the reality is that they carry significant risk,' bank's director general of financial conduct says

The warning is part of a European-wide campaign by the supervisory authorities in relation to cryptocurrency.

The Central Bank has warned consumers about the risks of investing in so-called crypto assets — including digital currencies — saying their “highly risky” and “speculative” nature means they “may not be suitable for retail customers”.

The warning is part of a European-wide campaign by the European supervisory authorities, including the European Banking Authority and the European Securities and Markets Authority.

“In Ireland, and across the EU, we are seeing increasing levels of advertising and aggressive promotion of crypto asset investments," said Derville Rowland, the Central Bank’s director general of financial conduct.

She highlighted the risks of “misleading” advertisements, particularly via social media, where ‘influencers’ are being paid to advertise crypto assets.

"While people may be attracted to these investments by the high returns advertised, the reality is that they carry significant risk,” Ms Rowland said.

“Before you buy crypto assets, you need to think about whether you can afford to lose all the money you invest. Do the promised fast or high returns seem too good to be true? 

"People should also be aware that if things go wrong, you do not have the protections you would have if you invested in a regulated product,” she said.