As published on cryptopotato.com on Monday August 10, 2020.
Crypto trading in Ireland will soon be much more regulated, and the country's lawmakers are poised to introduce anti-money laundering laws related to cryptocurrency.
The Irish Cabinet will introduce new anti-money laundering (AML) laws, according to the Irish auditor. This legislation will reportedly focus on the use of crypto in illicit financial activities such as money laundering and terrorist financing.
The new bill will put crypto companies in the purview of government agencies to extend the fifth EU Anti-Money Laundering Directive (AMLD-5) to the cryptocurrency sector. According to the report, a particular focus will be on wallets and exchange platforms.
Aside from cryptos, the new bill will also prevent Irish banks from setting up anonymous lockers. The country's authorities have reportedly been concerned about the activities of rogue actors “passporting” illicit funds across the continent on the basis of the EU's internal border policy. Therefore, the draft law also contains provisions for the proper identification of business units.
The new Irish laws may create further difficulties for crypto market participants in the country, especially in terms of the cost of compliance. Commercial banks in the country were previously accused of creating crypto profiles and refusing to provide services to cryptocurrency companies.
The move towards stricter crypto rules is a common theme across Europe, especially since different member states are adopting the AMLD5. As early as mid-December, the European Union (EU) gave crypto companies in Europe an ultimatum to adapt their business activities to the new regulations.
As previously reported by CryptoPotato, the EU Parliament announced in April that new agencies are needed to monitor the crypto market in the region. At the time, EU lawmakers argued that such a move was necessary to cover some regulatory "blind spots" related to the cryptocurrency industry.
When implementing AMLD-5 in Europe, some crypto exchanges in the region closed their services. In May, the Netherlands gave crypto exchanges a two-week ultimatum to register with the country's central bank under the Money Laundering Act. Failure to do so meant suspension of business in the country for exchanges.
The German authorities also recently took action against a Bitcoin ATM operator that was illegally providing services in the country. The district's tax authority already classified cryptos as a financial asset according to AMLD-5 in March 2020.
(tagsToTranslate) Offshore Trusts (t) Asset Management (t) Financial Publication (t) Economic Substance (t) Corporate Income Tax (t) Brexit (t) Fatca