A senior official in the Central bank of Ireland has been very active. Derville Rowland, director General financial conduct, warns investors that they may lose their money. According to her, bitcoin and other cryptocurrencies are speculative and unregulated.
In Rowland’s eyes, an investment in cryptocurrency’s is “speculative and unregulated.” According to her, investors should be aware that they will lose everything. In her role, she oversees over 10,000 financial companies in Ireland.
The criticism comes as no surprise. The bitcoin price is well over 40% below the previous record. If you got in at $64,500, you’d have lost a lot.
Bitcoin is a volatile investment because it is a very young asset, but since 2020 there have also been speculative products linked to the underlying asset.
So more and more ‘paper’ derivates of the bitcoin instead of physical bitcoin. The fact that more and more traders speculate with these products can cause shock effects on the market.
Rowland basically repeats the criticism of Andrew Bailey of the Bank of England and Haruhiko Kuroda of the Bank of Japan.
Klaas Knot, the Dutch central Bank and of the board of the Netherlands Authority for the Financial Markets has not yet commented on the current crypto boom/bust cycle.
Bitcoin companies in the Netherlands are under the supervision of the DNB. Within Europe and internationally, the Netherlands has one of the strictest regimes in the field of customer identification and transaction monitoring.
Worst month of May in 10 years
Last May is the worst may month in bitcoin history with a minus of almost 38%. The last time the month of May came out in the minus, was 2015.