Ireland Rushes to Draft Crypto Laws Ahead of December EU Anti-Money Laundering Deadline

Ireland’s Finance Minister Jack Chambers is preparing urgent cryptocurrency legislation to comply with incoming European Union anti-money laundering regulations before their December 30 implementation deadline, The Irish Examiner reports.

The new EU “Anti-Money Laundering and Countering the Financing of Terrorism Act” will significantly expand the powers of financial intelligence units, including the ability to suspend suspicious transactions. The regulations will impose stricter reporting requirements on crypto exchanges and introduce a €10,000 ($10,850) limit on cash payments, along with enhanced monitoring of large transactions.

The urgency comes as Ireland positions itself as an emerging crypto hub, with its Central Bank having already approved 15 virtual asset service providers, including major players like Gemini, Ripple, Paysafe, MoonPay, and Coinbase. The timing is particularly relevant given recent law enforcement actions in the country, where authorities seized approximately €6.5 million worth of cryptocurrency during an investigation into darknet markets and money laundering.

Derville Rowland, Deputy Governor of the Central Bank of Ireland, emphasized last month that the country aims to maintain its position at the forefront of safe innovation through the Markets in Crypto-Assets Regulation (MiCA). The new legislation will complement existing regulatory frameworks, including MiCA, which came into effect in June 2023.

“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,” the Central Bank of Ireland stated.

While specific details of the new legislation have not been disclosed, the regulations are expected to align with broader EU efforts to create a comprehensive framework for crypto asset markets while combating financial crime.

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