Key Takeaways
Ireland is set to adopt the new Markets in Crypto-Assets (MiCA) regulations, which were introduced by the European Union in June 2023. This regulatory framework aims to bring uniformity to the cryptocurrency sector across Europe, providing clear guidelines for the issuance of electronic money tokens and the operations of crypto-asset service providers. The Central Bank of Ireland has expressed strong support for MiCA, emphasizing the country’s commitment to secure innovation and financial democracy.
During the European Compliance and Legal Conference, held in September 2024, Derville Rowland, Deputy Governor of the Central Bank of Ireland, highlighted the importance of MiCA in advancing Ireland’s goals within the digital finance space. Rowland stated that Ireland is keen to implement these regulations in a way that promotes both innovation and financial security.
“Ireland remains committed to MiCA and its provisions, as this is the only way to innovate safely,” Rowland said, reiterating the country’s dedication to ensuring that cryptocurrency activities are regulated effectively. She further noted the transformative potential of blockchain technology, particularly in areas such as investment product tokenization and post-trade infrastructure.
MiCA, which is set to go into full effect by December 2024, introduces a unified approach to crypto regulation across the European Union. The framework applies to firms that issue tokens to the public and those managing crypto-asset services. By subjecting all players in the space to the same guidelines, MiCA aims to create a level playing field while ensuring investor protection.
Rowland stressed that Ireland’s approach to implementing MiCA will be centered on safe and responsible innovation. She explained that the Central Bank’s focus is on improving the authorization process for crypto companies, making it easier for firms to understand regulatory expectations.
“Ireland will work closely with other EU member states and the European Supervisory Authorities (ESAs) to ensure consistency in how these regulations are applied across the continent,” Rowland added. This collaborative approach is intended to prevent regulatory discrepancies and ensure a harmonized application of MiCA across Europe.
Ireland is also taking steps to foster greater engagement with the crypto industry. Rowland emphasized that increased communication between regulators and firms will lead to a more efficient and streamlined process for gaining regulatory approval. By enhancing transparency and clarity, the Central Bank hopes to create a more favourable environment for crypto companies looking to operate in the Irish market.
In March 2022, Ireland’s central bank talked about the risks around crypto investments, calling many crypto advertisements misleading — “particularly on social media, where influencers are being paid to advertise crypto assets”.
In 2023, the central bank governor reportedly referred to several cryptocurrencies as “unbacked” assets and suggested lawmakers “find a way” of banning related ads. In June, CBI granted permission to Crypto.com, to operate as a virtual asset service provider.
All Rights Reserved. Copyright , Central Coast Communications, Inc.