Ireland is gearing up to implement new regulations governing cryptocurrency, in anticipation of the European Union’s (EU) impending laws aimed at combatting money laundering and terrorist financing.
Finance Minister Jack Chambers is taking swift action to draft legislation to modernize the country’s crypto regulations, as reported by The Irish Examiner.
While specifics of the new rules remain undisclosed, Chambers, who assumed office in June 2024, is relatively new to the realm of crypto regulation.
The EU’s Anti-Money Laundering and Countering the Financing of Terrorism Act, effective from December 30th, 2024, grants enhanced investigative authority to Financial Intelligence Units (FIUs) across EU nations, enabling them to halt transactions if necessary.
Among the various measures included in the legislation is a pan-European prohibition on cash transactions exceeding €10,000 and stricter reporting obligations for financial institutions, including cryptocurrency exchanges.
It is important to note that the updated Anti-Money Laundering and Countering the Financing of Terrorism Act should not be confused with the Markets in Crypto-Assets Act (MiCA), which specifically regulates virtual assets such as cryptocurrencies and stablecoins. Both acts are scheduled to be enforced in December 2024.
In response to instances of organized crime exploiting cryptocurrencies for illicit activities, Ireland’s Criminal Assets Bureau (CAB) has initiated efforts to educate law enforcement on investigating crypto-related crimes, collaborating with entities like Binance for workshops.
In a high-profile case from 2020, CAB seized Bitcoin valued at approximately $56 million from a Dublin resident accused of operating a cannabis cultivation operation. However, the bureau has thus far been unable to access the funds, now valued at $378 million.
While the exact approach Ireland will take in response to the new anti-money laundering regulations remains uncertain, many industry players are already contemplating the potential impact of upcoming EU laws on the sector.
For instance, Binance relocated from Cyprus in July 2023 in anticipation of the impending MiCA legislation, while other companies view it as an emerging opportunity.
Beata Sivak, head of government relations and policy for Europe at crypto exchange Kraken, expressed optimism about MiCA, stating that it enables the company to invest in the region and provides the legal certainty needed, as highlighted during Brussels’ Blockchain Week.