MiCA is the EU’s new rulebook for crypto and digital asset firms
Ireland hosts offices of several major crypto companies. Graphic: Getty
The Department of Finance has been urged by major fintech firms to give the maximum amount of time for companies to comply with new EU rules on cryptocurrency.
The Electronic Money Association, whose members include Revolut and PayPal, wrote to the department to make the case for having the longest possible transition period before implementing the Markets in Crypto Assets (MiCA) regulation.
MiCA, or MiCAR, is the EU’s new bloc-wide rulebook for crypto and digital asset firms in Europe, harmonising licensing and regulation of their business while introducing stricter anti-money laundering requirements. The rules will apply from December 2024.
Ireland should maintain the ‘full 18 months’ say crypto providers
Member states must pass legislation to give effect to the rules in their own countries but have some discretion on implementation, namely in the transition period.
A company can continue to operate after the December 2024 deadline for up to 18 months but this time period can be narrowed.
Ireland should maintain the “full 18 months” for crypto asset service providers (CASPs), the EMA told the Department of Finance.
It would “provide adequate time for both CASPs and the regulator to prepare for compliance with, and application of the new regime,” said an organisation spokesperson.
“This will promote uniform application of the rules, prevent regulatory arbitrage, and mitigate the potential for market disruption to the benefit of consumers, CASPs, and supervisors.”
Ireland hosts offices of several major crypto companies, such as Gemini, Coinbase and Binance, who may seek regulatory approvals under MiCA in Ireland.
