In anticipation of the European Union’s imminent Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) legislation, Ireland is in the process of establishing new cryptocurrency regulations.
The Irish Examiner reported on October 16 that Finance Minister Jack Chambers informed the cabinet of the necessity for urgent revisions to crypto laws prior to the EU’s regulations entering into effect on December 30.
The specifics of the new legislation are still unknown, and the date of implementation for the updated regulations is uncertain.
The financial intelligence units’ authority to suspend suspicious transactions will be considerably enhanced by the EU’s AML/CFT act, which is scheduled to be implemented in December.
The legislation imposes a €10,000 ($10,850) limit on cash payments and establishes more stringent reporting requirements for cryptocurrency exchanges.
It also mandates additional reporting requirements for high-value activities and enforces enhanced monitoring of large transactions.
The framework seeks to mitigate risks in areas such as crowdfunding and crypto assets, in addition to other regulations, such as the Markets in Crypto-Assets (MiCA) regulation.
Derville Rowland, the deputy governor of the Central Bank of Ireland, underscored the nation’s dedication to innovation in the financial sector under MiCA in a statement from last month.
She emphasized that Europe must establish rigorous crypto regulations in order to be a leader in the adoption and adaptation of technology.
The AML/CFT act is not the same as the MiCA regulations, which have been in effect since June 2023. The Central Bank of Ireland underscored the significance of protecting its financial system from money laundering or terrorist activities, particularly in light of Ireland’s status as a small, open economy with a prospering financial services sector.
Gemini, Ripple, Paysafe, Moonpay, and Coinbase were among the 15 virtual asset service providers that the Central Bank had authorized as of July.
Coinbase has also pledged to eliminate non-compliant stablecoins from its European platform in accordance with regulatory mandates.
The European Union has established the Markets in Crypto Assets framework (MiCA) as a comprehensive regulatory framework to ensure that the regulation of crypto assets is consistent among its member states.
In April 2023, the European Parliament authorized its implementation, which is currently underway. Stablecoins issued within the region are subject to heightened regulatory requirements as a component of the MiCA framework.
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