Ireland is in the process of developing new cryptocurrency regulations ahead of the European Union’s upcoming Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) legislation. Finance Minister Jack Chambers has highlighted the need for urgent updates to crypto laws before the EU regulations come into effect on December 30. The specifics of the new legislation are yet to be revealed, and the timeline for implementation remains uncertain.
The EU’s AML/CFT act, scheduled to launch in December, will grant greater powers to financial intelligence units, allowing them to suspend suspicious transactions. The legislation will impose stricter reporting requirements on cryptocurrency exchanges and introduce a €10,000 limit on cash payments. Enhanced monitoring of large transactions and additional reporting mandates for high-value activities will also be enforced. These measures aim to address risks in areas such as crypto assets and crowdfunding, supplementing existing regulations like the Markets in Crypto-Assets (MiCA) regulation.
Derville Rowland, the Deputy Governor of the Central Bank of Ireland, has emphasized the country’s commitment to financial innovation under the MiCA framework. Robust crypto regulations are deemed essential for Europe to lead in technology adoption. The Central Bank of Ireland has authorized 15 virtual asset service providers as of July, including major players like Gemini, Ripple, Paysafe, Moonpay, and Coinbase. Coinbase, in compliance with regulatory requirements, has pledged to remove non-compliant stablecoins from its European platform.
The Markets in Crypto Assets (MiCA) framework, established by the European Union, aims to harmonize crypto regulation across member states. Approved by the European Parliament in April 2023, MiCA’s rules are being phased in gradually. Stablecoins issued within the EU region are subject to heightened regulatory requirements under MiCA. Circle, the issuer of USDC, became the first global stablecoin firm to achieve compliance with MiCA on July 1. While there is anticipation surrounding MiCA, some industry players have voiced concerns. Tether CEO Paolo Ardoino criticized the framework’s complexity and potential risks, while Binance has adjusted its operations in response to MiCA.
Despite the challenges presented by MiCA, blockchain companies and decentralized finance (DeFi) protocols are adapting to meet regulatory requirements. The implementation of the MiCA framework has required adjustments from major players in the industry. Tether and Binance, among others, have made changes to comply with the regulations. As the EU prepares to usher in new crypto laws, stakeholders in the cryptocurrency space are navigating the evolving regulatory landscape and ensuring compliance with the upcoming requirements.
