MiCA implementation in Ireland
Current requirements (prior to MiCA implementation)
In order to legally provide their services in Ireland, companies need to be authorised on the Central Bank of Ireland’s crypto registry. This requires:
1. Establish a local company.
2. Have a registered local office.
3. One of the senior employees must be physically located in Ireland and act as a point of contact.
4. Submit a pre-registration form to the Central Bank, the purpose of the form is to contact representatives of the Bank to discuss the provision of services in Ireland.
5. After meeting with the Bank’s representatives, submit a full registration form, which should include: the firm’s details, including the firms proposed VASP activities, business model, structure, and regulatory history, the firm’s shareholdings and senior management, including direct and indirect shareholders, partnerships, and management, information about the AML officer (no residency requirements), information about the contact person, the firm’s AML/CFT governance, including the firm’s risk assessment, policies and procedures/procedures, the firm’s AML/CFT governance, including the firm’s risk assessment, policies and procedures.
6. The following documents must be attached to the registration statement: AML policies, AML officer CV, proof of the company’s physical address in Ireland, business plan, individual questionnaire for shareholders and top managers of the company.
Has the jurisdiction enacted a law/draft law implementing MiCA?
There is no bill to implement provisions of MiCA (The Department of Finance will bring forward the necessary secondary legislation required to transpose MiCAR into Irish law, in advance of its entry into force on 30 June 2024.)
The Department of Finance has published the following consultation papers:
- Feedback Statement on the Public Consultation on the National Discretions contained in the Markets in Crypto Assets Regulation
- Public Consultation on the Markets in Crypto Assets Regulation (EU 2023/1114)
Who is the regulator under the law/draft law implementing MiCA?
The Central Bank of Ireland (CBI)
Requirements for future CASPs stipulated by the national legislation implementing MiCA, the presence of national peculiarities
Meet all the requirements set out in MiCAR.
The period of time by which the CASP must comply with the new requirements, as well as the procedure for notifying the regulator of compliance with the new requirements
The Department of Finance confirmed that Ireland will not exercise the discretion under MiCA to grant existing CASPs a simpler authorisation process, on the basis that the existing virtual asset service provider (VASP) regime in Ireland is not comparable to the regime envisaged under MiCA.
Is there a transition period before the full implementation of MiCA?
The Department of Finance has confirmed that Ireland will reduce the transition period to 12 months (31 December 2025).
The ability of a CASP from a jurisdiction with a transition period to operate freely in a jurisdiction without a transition period starting from January 1, 2025.
These provisions have not yet been adopted.
Liability provided for CASPs that continue to operate at the place of registration without meeting the new requirements
Ireland has decided not to lay down rules for administrative penalties under Article 111 (1). (“The discretion under Article 111(1) will not be exercised.”)
For financial penalties, where the ‘minimum maximum’ amounts are lower in MiCAR (e.g. €700k for natural persons), these should be brought up to the Administrative Sanctions Procedure (ASP) minimums.
All sanctions under the ASP (section 33Q of the Central Bank Act 1942) should be available to the CBI in respect of sanctioning breaches of MiCAR obligations, and not just the minimum list of penalties contained in Article 111 of MiCAR.
Other useful information regarding the implementation of MiCA
No other information is provided.
Manimama Legal & Growth Agency provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.