Global: Ireland Moves to Draft Urgent Crypto Regulations Ahead of EU AML Standards

Ireland is moving swiftly to draft new cryptocurrency regulations before the European Union enforces stricter Anti-Money Laundering (AML) and terror financing measures. Finance Minister Jack Chambers informed the cabinet that urgent legislation would be prepared to update the country’s crypto regulations before the EU laws take effect on December 30, according to a report from the Irish Examiner on October 16.

Though specific details about the forthcoming legislation remain undisclosed, the urgency stems from the EU’s forthcoming Anti-Money Laundering and Countering the Financing of Terrorism Act. This legislation will bolster the powers of financial intelligence units, enabling them to suspend transactions suspected of money laundering or terrorism financing. It will also enforce stricter reporting requirements on cryptocurrency exchanges and limit cash payments to €10,000 ($10,850).

The new EU framework will require heightened monitoring of large and high-value transactions, focusing on areas of risk, such as crypto assets and crowdfunding. It complements other existing EU regulations, including 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, highlighted the importance of keeping Ireland at the forefront of safe financial innovation through MiCA. She emphasized that robust crypto regulations are essential for Europe to position itself as a leader in adopting new technologies while safeguarding financial systems.

The Central Bank of Ireland echoed this sentiment, stating that as a small, open economy with a flourishing financial services sector, it is crucial for Ireland to play an active role in preventing the misuse of its financial systems for money laundering or terrorist financing.

By July, Ireland had already approved 15 Virtual Asset Service Providers (VASPs), including major names such as Gemini, Ripple, Paysafe, MoonPay, and Coinbase. Coinbase, in particular, agreed to delist non-compliant stablecoins from its European platform in accordance with MiCA’s regulatory framework.

As Ireland prepares its urgent legislation, the goal remains clear: to align with EU standards while maintaining a leadership role in regulating the evolving cryptocurrency landscape.