For the first time, Ireland’s crypto businesses have been subjected to regulatory oversight. With local digital asset firms now adhering to EU anti-money laundering guidelines.
The Criminal Justice Money Laundering and Terrorist Financing Amendment Act of 2021 transposed the EU’s Fifth Anti-Money Laundering Directive, or 5AMLD, into Irish law on April 23.
Virtual Asset Service Providers, or VASPs, and the businesses. That service VASPs must adhere to the same regulatory standards as mainstream financial firms. When it comes to crypto assets and custodial wallet providers.
Within the next three months, Irish VASPs must register with the Central Bank of Ireland and conduct due diligence on their clients, which includes identifying them, accounting for the origin and destination of their crypto assets, and reporting suspicious financial activity.
Due to a lack of regulation in Ireland previously, traders were able to invest in crypto assets anonymously.
Moreover, this could be just the start of Irish crypto regulation. As all VASPs serving European countries expected to comply with the EU’s Sixth Anti-Money Laundering Directive by June 3. Also, any VASP with European customers required to register with EU authorities. And comply with stringent reporting requirements under the 6AMLD.
The updated guidelines, unlike 5AMLD, allow European authorities to punish companies and related legal entities, not just rogue employees. VASPs that do not follow the directive risk being fined or shut down.