Running a crypto firm in Ireland without registering with the Irish Central Bank is now a criminal offense.
What the law brought
Ireland’s crypto businesses have become subject to regulatory oversight for the first time, and local digital asset firms are now complying with anti-money laundering rules set by the European Union or EU.
The EU’s Fifth Anti-Money Laundering Directive, or 5AMLD, was transposed into the Irish Law on April 23 with the Criminal Trial Money Laundering and Terrorist Financing Amendment Act of 2021.
Legislation requires companies that work with Virtual Asset Service Providers or crypto assets and custody wallet providers called VASP, and businesses serving VASPS, to comply with the same regulatory standards of mainstream financial firms.
Irish VASPs must now register with the Bank of Ireland within the next three months and conduct due diligence on their customers. These transactions include accounting of the origin and destination of crypto assets and reporting of suspicious financial activity.
Ireland’s previous lack of regulation allowed traders to invest in crypto assets anonymously.