Ireland to Develop ‘Critical’ New Regulations for Cryptocurrency in Anticipation of EU Action Against Money Laundering – Decrypt

Ireland is gearing up to implement new regulations governing cryptocurrency, in anticipation of the European Union’s (EU) forthcoming package of laws designed to combat money laundering and terrorist financing.

Finance Minister Jack Chambers is taking urgent steps to draft legislation that will update the country’s crypto regulations, as reported by The Irish Examiner.

While the specific details of these rules remain unclear, Chambers, who assumed office in June 2024, has minimal experience as a crypto regulator.

The Anti-Money Laundering and Countering the Financing of Terrorism Act, effective from December 30th, 2024, grants enhanced investigative powers to the Financial Intelligence Units (FIUs) of EU member states, allowing them to suspend transactions.

Additionally, the legislation includes an EU-wide prohibition on cash payments exceeding €10,000 and imposes stricter reporting obligations on various financial services entities, including crypto exchanges.

It is important to distinguish the revised Anti-Money Laundering and Countering the Financing of Terrorism Act from the Markets in Crypto-Assets Act (MiCA), which specifically addresses virtual assets such as cryptocurrencies and stablecoins. Both statutes are slated to become effective in December 2024.

Instances of organized crime employing cryptocurrencies for illicit purposes have been documented in Ireland. To tackle this issue, Ireland’s Criminal Assets Bureau (CAB) has taken proactive measures to educate law enforcement officers on investigating crypto-related crimes through workshops conducted in collaboration with entities like crypto exchange Binance.

In a 2020 case, the CAB confiscated Bitcoin valued at approximately $56 million from a Dublin resident accused of running a cannabis cultivation enterprise. However, the CAB has been unable to access these funds, which are now valued at $378 million.

The approach Ireland will adopt in response to the new anti-money laundering regulations remains uncertain, prompting speculation among various companies about the potential impact of the forthcoming EU rules.

For instance, Binance vacated Cyprus in anticipation of the impending MiCA legislation in July 2023, while other entities view it as an upcoming opportunity.

Beata Sivak, the head of government relations and policy for Europe at crypto exchange Kraken, cited MiCA as providing the entity with the capability to invest in the region and the legal certainty it desires, as highlighted at Brussels’ Blockchain Week.