The Irish crypto scene is booming as fund managers seek rules on a new asset class. A survey conducted by the Irish Banking and Payments Federation (BPFI) revealed that cryptocurrency investments in the country are favored more by younger citizens aged 18-34 who usually resort to online sources. Data gathered also showed that different generations prefer different investment channels, with older people investing in bonds, investment funds, and stocks, while the younger ones are more likely to go digital.

Last year, authorities arrested an elderly Irish woman for offering unauthorized advice in cryptocurrency investments and people are reminded that the Investment Intermediary Act of 1995 still applies. In line with this, Gabriel Makhlouf, the Central Bank Governor, commented that the purchase of crypto is similar to buying a lottery ticket- and not an actual “investment”- whereas it could be better described as a “Ponzi scheme”. However, he encouraged policy action from the European Union to protect consumers who decide to invest in cryptos.

The BPFI also spoke about how critical it is for investors to balance digital information sources with advice from banks or brokers to remain safe. This is why Coinbase was given the go-ahead to be a crypto custodian for institutional investors, although it must comply with anti-money laundering requirements to earn the approval.

As for those interested in digital assets, there are two types of investors- those distinguished as “HODLers” stuck to the idea of “buy and hold”, expecting profits in the long run, and those that include cryptocurrency in their portfolios thoughtfully. In Luxemburg, a fund investing in funds with crypto allocations was created, although it is not without its risks.

The USA had taken initiatives to criticize pension fund managers that plan to include crypto in the investment portfolio of clients. On the other hand, some members of the French crypto community had proposed to allocate the entire portfolio to Bitcoin.

The European Union’s Markets in Crypto Assets bill does not specifically address the expectations for fund managers when it comes to investing in cryptos but it is much more advanced than the U.S. Kevin O’Leary attributed the disinterest of institutional investors to the lack of regulation.



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