Ireland Takes Action to Create Urgent Cryptocurrency Regulations Before EU Deadline

Jimmy Aki
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Ireland’s Finance Minister, Jack Chambers, announced plans to create urgent cryptocurrency regulations to amend previous legislation on digital assets and associated firms. This update aims to align with new European Union (EU) laws on anti-money laundering (AML) and terrorism financing, which are set to take effect on December 30, 2024.

Ireland Proposed Crypto Regulations Draft Will Complement MiCA

According to a report by local news media, Irish Examiner, while these crypto regulations are deemed urgent, the specific details of the new framework remain undisclosed, leaving it uncertain when the updated rules will be implemented.

However, the upcoming EU AML legislation, set to take effect in December, will significantly improve the powers of financial intelligence units. This legislation will give these units the authority to suspend suspicious transactions and introduce stricter reporting requirements for cryptocurrency exchanges.

Additionally, it will impose a limit of €10,000 (approximately $10,850) on cash payments and require improved monitoring of large transactions, accompanied by more stringent reporting mandates.

This recent initiative aligns with enforcement actions taken by the Irish police.

According to the local report, the Irish police seized around €6.5 million worth of cryptocurrency, including Bitcoin and Monero, during an extensive investigation into darknet markets and money laundering. This incident pinpoints the need for crypto regulations that can effectively address risks associated with crypto assets and crowdfunding.

The proposed cryptocurrency regulations also aim to complement existing laws, such as the Markets in Crypto-Assets (MiCA) regulation.

It could be recalled that on September 23, Derville Rowland, deputy governor of the Central Bank of Ireland, stated the nation’s commitment to innovation within the financial sector under the MiCA framework.

She noted that strong crypto regulations are essential for Europe to lead in adapting and adopting new technologies.

The Central Bank of Ireland is committed to safeguarding its financial system from misuse for money laundering and terrorist activities.

As of July, it has authorized 15 virtual asset service providers, including prominent names like Gemini, Ripple, Paysafe, Moonpay, and Coinbase, to offer residents secure and regulated crypto services.

This commitment is especially vital given Ireland’s status as a small, open economy with a thriving financial services sector.

Other EU-Crypto Firms Remain Compliant With MiCA

The MiCA framework established by the EU is opening the door for member states to have more uniform cryptocurrency regulations. As part of this initiative, stablecoins issued within the EU are now subject to stricter regulatory requirements.

In a notable move, Circle, the issuer of USDC, became the first global stablecoin firm to secure an Electronic Money Institution (EMI) license under the EU’s MiCA framework on July 1, 2024.

Recent reports also highlight major changes in how major exchanges are responding to these new regulations.

For instance, Bloomberg revealed that Coinbase plans to remove all stablecoins that do not meet MiCA requirements by December 30, 2024, affecting users in the European Economic Area (EEA).

Similarly, Bitstamp recently delisted Euro Tether (EURT), citing compliance with MiCA as a central reason for its decision.

Binance, the leading global exchange by trading volume, has also revised its strategy. While it has not fully delisted unauthorized stablecoins, it is limiting access to them in Europe, reflecting a cautious approach to ensure compliance.

As Ireland drafts its crypto regulations to complement MiCA, the focus on compliance will likely intensify, further shaping the future of digital assets in Europe.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.