Charged with regulating financial services in the Republic of Ireland, the CBI doesn’t have any specific guidelines regarding digital currencies’ status. There’s no government agency charged or department responsible for overseeing the cryptocurrency market, either. Moreover, it’s not yet clear how existing financial legislation is applicable to this hitherto unseen & unknown phenomenon.
That said, the CBI did come up with a warning about cryptocurrency- & ICO-related risks alerting potential investors to a danger of full or partial forfeiture of their funds.
So, let’s see whether one can register a cryptocurrency business in the Republic of Ireland and whether it makes sense to launch a cryptocurrency exchange in the Republic of Ireland now.
How to register a Cryptocurrency Company in the Republic of Ireland
2018 saw the Treasury Department release a report on digital currencies & DLT in which it expressed an opinion that no government agency is capable of predicting & addressing each and every risk & opportunity connected to cryptocurrencies. It is now working on putting together an interdepartmental group charged with:
- considering various related problems;
- considering any potentially necessary advice.
Although there’s no particular legislation regulating taxation of cryptocurrencies in the Republic of Ireland, the Revenue Commission released a report on taxation of transactions involving digital currencies in the Republic of Ireland in 2018.
Regulation of Cryptocurrencies in the Republic of Ireland: Expectations
The importance of digital currencies & DLT is underscored by the creation of Blockchain Ireland, an organization whose primary task is the promotion of cryptocurrencies & DLT in the Republic of Ireland & an announcement made by the CBI whereby it’s now working on a center of excellence & innovation that will provide companies with an opportunity to directly interact with Ireland's main financial institutions.
Hence, the general expectation is that the CBI & government agencies will come up with more recommendations on how existing legislation can be applied to DLT & digital currencies. Transposing Directive AMLD5 is also expected to make a dramatic difference for regulation of crypto exchanges in the Republic of Ireland.
Got any questions? Need advice on regulation of digital currencies in the Republic of Ireland? Why not reach out to IQ Decision UK?