Ireland Cryptocurrency Laws Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
The Central Bank of Ireland is responsible for issuing regulations relating to cryptocurrency and other financial services in Ireland. [1] No regulations apply specifically to cryptocurrency in Ireland, and the Central Bank does not view cryptocurrency as legal tender. [2] A cryptocurrency can fall under existing financial regulations if it is deemed to be a “transferable security.” [3] A transferable security under existing regulation includes “shares, bonds, derivates, and other instruments that give their holders similar rights or entitlements.” This results in a case-by-case determination of whether a cryptocurrency can be regulated in Ireland. For example, currencies such as Bitcoin, Litecoin, and Ether do not fall under the existing regulations in Ireland because they are not “centrally issues and give no rights or entitlements to holders.” The Central Bank of Ireland considers these coins to be “unregulated” because they are not transferable securities. [5] It would be possible that cryptocurrencies that give the holder rights or entitlements similar to a share or bond would fall under the existing regulatory scheme.
Recently, Ireland passed a law that requires cryptocurrency companies, called virtual asset service providers (VASPs), to register with the Central Bank of Ireland and comply with the EU’s anti-money laundering guidelines. [6] The law requires that VASPs who exchange fiat currencies for cryptocurrencies must adhere to “know-your-customer” requirements. [7] VASPs will now have to conduct due diligence on their customers, know the source and destination of their crypto assets, and report any suspicious financial activities. [8]
P.S. Insights on Cryptocurrency Legal Issues
Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.
Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.
However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.
Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency. The globe below provides links to country-by-country summaries:
