Ireland is moving to develop new cryptocurrency regulations in anticipation of the European Union’s forthcoming Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) legislation.
Finance Minister Jack Chambers informed the cabinet about the need for urgent updates to crypto laws before the EU’s regulations take effect on December 30, according to a report by the Irish Examiner on October 16.
The legislation introduces stricter reporting requirements for cryptocurrency exchanges and places a €10,000 ($10,850) limit on cash payments.
The EU’s AML/CFT act, set to launch in December, will significantly increase the powers of financial intelligence units, including their authority to suspend suspicious transactions.
The framework aims to mitigate risks in areas like crypto assets and crowdfunding, complementing other regulations such as the Markets in Crypto-Assets (MiCA) regulation.
It also enforces enhanced monitoring of large transactions, with additional reporting mandates for high-value activities.
It was approved by the European Parliament in April 2023, and its rules are being implemented in stages. As part of the MiCA framework, stablecoins issued within the region are subject to increased regulatory requirements.
MiCA is a comprehensive regulatory framework established by the European Union to create consistency in crypto regulation among its member states.