Ireland Prepares ‘Urgent’ Crypto Regulations Ahead of EU AML Standards

Ireland Prepares ‘Urgent’ Crypto Regulations Ahead of EU AML Standards

Ireland is gearing up to draft urgent cryptocurrency regulations ahead of the European Union’s new Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) standards, which are set to take effect on Dec. 30. Finance Minister Jack Chambers informed the cabinet of the need to update crypto regulations to align with these upcoming EU standards, as reported by the Irish Examiner on Oct. 16.

Although no specific details about the new legislation or its timeline were provided, the move underscores Ireland’s commitment to adapting its regulatory framework in anticipation of the EU’s updated AML/CFT requirements. The new EU legislation will empower financial intelligence units to suspend transactions, impose stricter reporting obligations on crypto exchanges, and set a 10,000 euro ($10,850) limit on cash payments. Additionally, there will be enhanced monitoring and reporting requirements for high-value transactions, aimed at combating money laundering and terrorism financing.

The legislative framework will address a range of risks, including those posed by crypto assets and crowdfunding. The European Commission noted that these new AML/CFT standards are intended to complement other regulations, such as the Markets in Crypto-Assets Regulation (MiCA), which came into effect in June 2023. In September, Derville Rowland, deputy governor of the Central Bank of Ireland, emphasized the importance of safe innovation, noting that effective crypto regulations were essential for Europe to become a global leader in adopting new technologies.

The Central Bank of Ireland has also reiterated the need for Ireland to be proactive in preventing its financial system from being exploited for money laundering and terrorism financing. As of July, the Central Bank had approved 15 virtual asset service providers (VASPs), including notable names like Gemini, Ripple, Paysafe, MoonPay, and Coinbase. Coinbase has agreed to delist non-compliant stablecoins from its European platform in line with the new regulatory expectations.

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