- Ireland is drafting new regulations urgently to prepare for the incoming EU AML regulations that will complement MiCAR.
- The Bank of Ireland has already approved 15 virtual asset providers, Ripple and Coinbase among them, who have agreed to delist non-compliant stablecoins.
- EU’s newest AML regulations will introduce new reporting requirements for high-value transactions and impose stricter monitoring for large transactions.
Ireland is hurrying its new crypto regulations along before the EU anti-money laundering (AML) regulations arrive on December 30.
The new EU regulations will impose stricter reporting requirements for crypto exchanges, large and high-value transactions, and crowdfunding efforts.
The Markets in Crypto-Assets Regulation (MiCAR) has been in effect since June 2023. Derville Rowland (deputy governor of Ireland’s Central Bank) said the country plans to follow it to the letter.
Let’s see what the new crypto regulations entail and how Ireland is preparing for the EU’s AML rules.
Ireland Determined to Lead in EU AML Compliance
Back in September, the Central Bank of Ireland emphasized the importance of adhering to the EU’s AML regulations.
It is important that Ireland, as a small, open economy with a thriving financial services industry, is an active participant in preventing its financial system from being used for money laundering and terrorist financing purposes.Central Bank of Ireland
Ireland has already approved 15 virtual asset providers, including Paysafe, Coinbase, Gemini, Moonpay, and Ripple. They all agreed to delist non-compliant stablecoins from their platforms, as per MiCAR.
Derville Rowland also clarified that Ireland is closely working with MiCAR to regulate the local crypto industry.
One of the main goals is to ‘avoid divergent approaches emerging in different jurisdictions.’ Rowland also mentioned that crypto regulations are essential for Europe to become an industry leader in emerging technologies.
But what are the incoming anti-money laundering rules about?
EU AML Regulations – What Do We Know About Them?
Here’s a summary of the EU AML regulations that Ireland is scrambling to meet:
- Common EU rules for AML/CFT, offering more consistent enforcement throughout the EU
- All AML/CFT rules will apply fully to cryptocurrencies
- A new EU authority will take charge of AML regulations (the AMLA)
- A 10K EUR reporting limit on cash payments for crypto exchanges
- Stricter monitoring of large transactions
- New reporting requirements for high-value transactions
- Renewed regulatory oversight of risk areas like crowdfunding
According to the European Commissioner, the new AML regulations will complement ‘other regulations such as the MiCA.’
Given this continuity in regulations, we should expect consistent enforcement without too many obstacles and divergent approaches.
Verdict – New Regulatory Crypto Landscape?
The new EU AML regulations shouldn’t change too much in the crypto landscape. We knew they were coming, and Ireland isn’t the only country actively preparing for them.
MiCAR has been around for a year, and companies have had time to adapt. These new regulations will add on top of MiCAR, making compliance easier.
But we’ll see how the industry adapts and reacts to these changes soon.
References
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