Ireland will draft urgent legislation to update crypto regulations in accordance with EU money-laundering rules

Ireland will draft urgent cryptocurrency regulations before the European Union Anti-Money Laundering and terror financing standards come into effect on Dec. 30.

According to the Irish Examiner on Oct. 16, Ireland’s Finance Minister, Jack Chambers told the Cabinet that he will draft an urgent legislation to update Ireland’s regulations on crypto firms and digital assets before the EU’s “Anti-Money Laundering and Countering the Financing of Terrorism Act” come into place on Dec. 30.

At the moment, Chambers has not given out further details on what the new crypto legislation will cover or when it might come into force.

The EU’s “Anti-Money Laundering and Countering the Financing of Terrorism Act” aims to enhance the powers of financial intelligence units, enabling them to suspend transactions.

Under the EU’s AML/CFT, crypto exchanges will face stricter regulations when it comes to reporting requirements as well as a €10,000 or equal to $10,850 limit on cash payments. There will also be heavier monitoring of large transactions and new reporting requirements for high-value transactions.

The regulations cover certain areas that pose high risks for money-laundering and terrorism financing, including laws involving crypto assets and crowd fundings. In addition, the AML/CFT is poised to complement other regulatory frameworks including the Markets in Crypto-Assets Regulation.

On Sept. 23, Deputy Governor of the Central Bank of Ireland, Derville Rowland, stated the bank’s intentions to keep the country’s financial system at the forefront of safe innovation in accordance with MiCA regulations.

She recognized that crypto regulations were a vital part of Europe’s development into a global finance leader in adapting and adopting new technologies.

“It is important that Ireland, as a small, open economy with a thriving financial services industry, is an active participant in preventing its financial system from being used for money laundering and terrorist financing purposes,” said the Central Bank of Ireland.

As of July, the Central Bank of Ireland has already approved 15 virtual asset service providers, which included Gemini, Ripple, Paysafe, MoonPay and Coinbase.