Crypto and how we can protect the consumer

In a recent speech, Gabriel Makhlouf, Governor of the Central Bank of Ireland (CBI), emphasized the need for regulatory oversight and consumer protection in the rapidly evolving crypto ecosystem.
The CBI highlights he urgent need for policy action to address crypto risks. Gabriel Makhlouf supports the recently approved Markets in Crypto Assets Regulation (MiCA), which will establish prudential and consumer requirements for the crypto sector across the EU, with full implementation set for 2025.
The Central Bank differentiates between ‚backed crypto,‘ which includes Electronic Money Tokens (EMTs) and Asset Reference Tokens (ARTs) under MiCA, and ‚unbacked crypto,‘ which warrants skepticism due to its potential resemblance to Ponzi schemes. The CBI remains concerned about the potential for consumer harm, particularly from aggressive marketing and misleading advertising.
Governor Makhlouf emphasizes the need for international coordination to regulate and supervise the crypto market, ensuring it is treated on par with other financial markets. He highlights the importance of addressing vulnerabilities in a timely manner and working with partners across the EU and global platform, such as the Financial Stability Board, to establish a rigorous regime that promotes a level playing field and avoids regulatory arbitrage.