Effective from April 2021, any crypto firms operating in Ireland are obliged to register with Ireland’s Central Bank, and it will be a criminal offense to run crypto operations without this registration.
For the first time ever, regulatory requisites are being placed upon crypto businesses in Ireland, mainly to oversee anti-money laundry guidelines set out by the European Union (EU).
On April 23, Ireland’s Criminal Justice Money Laundering and Terrorist Financing Amendment Act of 2021, revisioned the Fifth Anti-Money Laundering Directive created by the European Union, or 5AMLD, and became a new Irish Law.
Ireland is Getting Tougher on Cryptos
The so-called Virtual Asset Service Provider, or VASPs, referring to firms that operate with crypto assets and custodial wallet providers, and the businesses that sell services to VASPS, are now required to comply with the same regulatory standards of mainstream financial firms.
Within the next three months, Irish VASPs will be required to register with the Central Bank of Ireland, along with carrying out audits to ensure due diligence on behalf of their clients.
These audits must include identification, origin and destination of their crypto assets; together with reporting suspicious financial activity. Until then, Ireland’s irregulated crypto market allowed traders to invest in crypto assets anonymously.
Digital Assets in the Spotlight
Ireland is reacting early on its domestic economy in advance to all VASPs worldwide, who provide services to European countries, expected to also comply with the European Union’s Sixth Anti-Money Laundering Directive by June 3rd.
According to the EU’s 6AMLD, all VASPs servicing european customers are asked to register with EU authorities and provide rigorous reporting requirements.
European Union’s 6AMLD is an updated guideline that allows European authorities to punish companies and related legal entities, unlike the 5AMLD that granted the faculty of punishing rogue employees.
Failure to comply with the 6AMLD requisites may leave VASPs facing sound fines or even closure. Ireland joins many nations in adding regulations to the crypto markets, or banning the use of decentralized assets outright.