Ireland Races To Revise Crypto Legislation Ahead of EU MiCA Mandate

• Ireland is set to impose urgent crypto regulations to meet the EU’s upcoming anti-money laundering law.
• The EU’s anti-money laundering law and its Markets in Crypto-Assets Regulation are enacted on Dec. 30.
• The country has started to gain recognition as a potential emerging hub for the crypto industry.

Ireland is racing to impose new crypto regulations in time to launch the EU’s new anti-money laundering laws, which come into effect on Dec.30.

At the same time, Ireland and other EU member states are working towards fully enforcing the bloc’s Markets in Crypto-Assets Regulation (MiCA), which also comes into effect at the end of December.

Ireland’s Urgent Crypto Legislation

According to the Irish Examiner , Ireland’s Finance Minister, Jack Chambers, is set to draft urgent legislation to update crypto regulations and remain compliant with the EU’s “Anti-Money Laundering and Countering the Financing of Terrorism Act” (AMLA/CTF Act).

Chambers has not yet provided details on what the new crypto legislation will cover.

The EU’s AMLA/CTF Act aims to boost the power and control of European financial intelligence units while imposing stricter reporting requirements on crypto exchanges.

It is part of a broader package of reforms that seeks to strengthen the EU’s regulatory framework while working alongside and “complementing other regulations such as MiCA.”

MiCA Deadline Looms

MiCA is a regulatory framework created by the EU to enforce a comprehensive and harmonized set of rules for the crypto-assets market.

The regulation aims to address the fragmentation of legislation across EU member states by providing a unified legal framework that promotes transparency and investor protection.

Mica was voted into law in 2023 after a three-year development period from the EU.

Under MiCA, firms can choose a single EU member state for their licensing which can then be ‘passported’ across the EU.

Risk Of Non-Compliance

As a sweeping EU regulation, MiCA will apply directly to all member states without the need for transposition into national law.

If Ireland has not established the necessary infrastructure and enforcement mechanisms to comply with MiCA, it could fall out of EU law.

The country has started to gain recognition as a potential emerging hub for the crypto industry.

In December, crypto company Ripple selected Ireland as its primary entry point into the European Union market.