Ireland is taking urgent steps to draft new cryptocurrency regulations ahead of the European Union’s Anti-Money Laundering and terror financing standards that will be implemented on December 30. Finance Minister Jack Chambers has informed the Cabinet about the need to update Ireland’s regulations on crypto firms and digital assets to comply with the EU’s regulations.
The specifics of the new crypto legislation have not been disclosed by Chambers yet, including when it will be put into effect. The EU’s Anti-Money Laundering and Countering the Financing of Terrorism Act is designed to strengthen the authority of financial intelligence units, allowing them to halt transactions.
Under the EU’s AML/CFT, cryptocurrency exchanges will be subject to stricter regulations regarding reporting requirements and a limit of €10,000 or around $10,850 on cash payments. There will also be increased monitoring of large transactions and new reporting obligations for high-value transactions. The regulations will address areas with high risks of money laundering and terrorism financing, such as laws related to crypto assets and crowdfunding, and will align with other regulatory frameworks like the Markets in Crypto-Assets Regulation.
Derville Rowland, Deputy Governor of the Central Bank of Ireland, stated on September 23 that the bank aims to keep the financial system in Ireland at the forefront of safe innovation in line with MiCA regulations. She emphasized the importance of crypto regulations in Europe’s progress towards becoming a global leader in finance through the adoption of new technologies.
The Central Bank of Ireland highlighted that it is crucial for Ireland to actively participate in preventing its financial system from being exploited for money laundering and terrorist financing purposes, given its status as a small, open economy with a thriving financial services industry. In July, the Central Bank of Ireland approved 15 virtual asset service providers, including well-known companies like Gemini, Ripple, Paysafe, MoonPay, and Coinbase.
Ireland’s proactive approach to updating its cryptocurrency regulations demonstrates its commitment to ensuring compliance with EU standards and maintaining the integrity of its financial system. By aligning with the Anti-Money Laundering and Countering the Financing of Terrorism Act, Ireland seeks to enhance its regulatory framework and contribute to the fight against illicit financial activities in the digital asset space.