The Central Bank of Ireland has issued a statement that prohibits payment providers from offering or facilitating cryptocurrency services through their applications. This move brings payment fintechs and financial institutions under the same regulatory framework in the country.
The statement from the monetary authority aims to protect consumers from the risks associated with cryptocurrencies, such as money laundering, fraud, and market volatility. The Central Bank of Ireland is also concerned about the lack of transparency and accountability in the crypto market.
This new regulation comes as the popularity of cryptocurrencies continues to grow in Ireland. The Central Bank of Ireland has previously issued warnings to consumers about the risks of investing in cryptocurrencies, but this is the first time it has taken regulatory action against payment providers.
The Central Bank of Ireland is not the only financial regulator to take a cautious approach towards cryptocurrencies. Many central banks around the world are also concerned about the risks associated with cryptocurrencies and are working to regulate the industry.
The move by the Central Bank of Ireland is likely to have a significant impact on the crypto industry in the country. Payment providers that offer cryptocurrency services will need to comply with the new regulations or face penalties.
While some members of the crypto community may see this move as a setback, others believe that it will ultimately benefit the industry. By bringing payment fintechs and financial institutions under the same regulatory framework, consumers will be better protected and the industry will become more transparent and accountable.
Overall, the Central Bank of Ireland’s decision to prohibit payment providers from offering cryptocurrency services is a significant development in the regulation of the crypto industry. It remains to be seen how this will impact the industry in Ireland and whether other countries will follow suit.