Issues Connected With Virtual Currencies in Ireland

Digital currencies move from the sandbox to the high street. The number of digital coins and tokens grows fast. More and more countries are considering adopting a government-sanctioned digital currency. With this regard, the attention of governments and regulators in many countries today is drawn to digital forms of payment and issues that arise in connection with them. For example, the Central Bank of Ireland, which regulates financial services in Ireland, pays special attention to cryptocurrencies, which are increasingly used by consumers, but, unfortunately, they are often associated with various kinds of illegal activities.

Advantages of virtual currencies

If you are planning to start operations with virtual currencies in Ireland, then you are probably aware that digital currencies have a number of undeniable advantages:

• unrivaled fast execution of transactions, since there is no need for a physical bank;
• low costs;
• high level of transparency as transaction records are recorded all the time.

Today, the number of virtual currencies is growing all the time. In response to this rapid growth, issues are also on the rise, which financial regulators are seeking to counter. One such method is the creation of a crypto exchange in Ireland.

Irish crypto business

There is currently no legislation that regulates virtual currencies in Ireland. Meanwhile, some steps towards the development of the cryptosphere are still being taken. For example, the Central Bank recently warned through the media about the dangers associated with virtual currencies and also sent out a warning to investors about the risks associated with ICOs in Ireland. A public discussion about blockchain technology has been initiated in the society, including the registration of a blockchain platform in Ireland.

Key issues

Ireland has established an interagency working group on digital currencies and blockchain to track events and advise on crypto activities in Ireland. Three key issues have been identified that need to be addressed as soon as possible:

1. Money laundering 
   
   In Ireland, the regulation of crypto companies is seeking to strengthen to make transactions more transparent. If an entrepreneur is planning to obtain a license for a virtual currency operator in Ireland, it is worth noting that there is an obligation for such persons to promptly report any suspicious activity to the relevant authorities.
2. Lack of consumer protection
   
   A consumer using virtual currency must overcome various kinds of threats: unauthorized write-offs, hacking, identity theft, etc. The lack of specific consumer laws in this area exacerbates these risks, including allowing criminals to use cryptocurrencies for tax evasion and financing illegal activities.
3. Monetary sovereignty
   
   Nowadays, there is growing concern that the registration of companies for crypto activities in the EU and transactions with virtual currencies pose a risk to the stability of traditional financial systems.

The near future of the crypto industry

Given the lightning-fast growth of the crypto industry, the interest in establishing cryptocurrency exchanges in the EU, and beyond, a coordinated effort is needed to solve the main problems that this industry creates: money laundering and financing of illegal actions. Steps will also be taken in a systematic manner to create reliable consumer protection mechanisms.

Legal assistance

Seasoned professionals of our company are constantly following the latest changes in the EU cryptocurrency regulation, including Ireland. We provide our clients with the following services:

• support during the registration of a European company for crypto activity;
• assistance in preparing a prospectus for ICO in Ireland;
• client support in licensing ICO projects in Ireland;
• assistance in stabilizing a blockchain startup.