Irish lawmakers are urgently preparing legislation covering digital assets and crypto firms ahead of the broader European Union’s anti-money laundering and terror financing laws, set to be enacted on 30 December 2024.
According to a report by the Irish Examiner, Ireland’s Finance Minister, Jack Chambers, has already asked the cabinet to draft this urgent law, as the country needs to update its regulations before the European bloc's deadline.
EU Moves Ahead with Crypto Laws
The 27-country European bloc’s Anti-Money Laundering and Countering the Financing of Terrorism Act covers crypto transactions. However, it differs from the Markets in Crypto-Assets Regulation (MiCA), which partially came into effect earlier this year, with its remaining provisions set to be enforced by the end of 2024.
While MiCA focuses on making crypto transactions transparent, the new anti-money laundering and terror financing laws will enhance the powers of European financial intelligence units, enabling them to suspend transactions. According to a statement by the European Commission, AML laws “complement other regulations such as MiCA.”
Specific to cryptocurrencies, the anti-money laundering and terror financing laws will impose stricter reporting requirements for exchanges, and limit cash payments to €10,000 (around $US10,850). They will also mandate the monitoring of large crypto transactions and introduce new reporting requirements for high-value transactions.
Ireland Becomes a Favourite for Crypto Firms
Ireland is becoming one of the top jurisdictions for crypto giants to establish their European bases. By July, the Central Bank of Ireland had approved 15 virtual asset service providers, including major firms such as Gemini, Ripple, Paysafe, MoonPay, Kraken, and Coinbase. However, stablecoin issuer Circle is planning to move its legal base from Ireland to the US.
The influx of crypto companies has also raised concerns about the risks of money laundering through digital assets.
“It is important that Ireland, as a small, open economy with a thriving financial services industry, actively participates in preventing its financial system from being used for money laundering and terrorist financing purposes,” the Irish Central Bank noted in a statement.
