The Central Bank of Ireland has warned consumers about the risk of "misleading" ads promoting crypto investments, particularly ones by influencers on social media.
The Republic of Ireland's central bank issued this alert as part of a general warning about the risks of investing in crypto assets.
In an announcement Tuesday, the Central Bank of Ireland "emphasized that crypto assets are highly risky and speculative, and may not be suitable for retail customers.
"In particular, people need to be alert to the risks of misleading advertisements, particularly on social media, where influencers are being paid to advertise crypto assets."
The central bank's warning comes as part of a Europe-wide campaign by financial regulators surrounding the risks in crypto investment. The European Securities and Markets Authority (ESMA) last week issued a statement saying consumers "face the very real possibility of losing all their invested money if they buy these assets."
Warnings of this nature by central banks and regulators are nothing new. It is possible that European authorities are responding to the ever increasing interest in crypto, which has been given a boost in recent weeks by Russia's invasion of Ukraine and the connotations for crypto assets that have followed.