Cryptocurrency in Ireland refers to a type of payment that is available only for online transactions and it is known as a virtual money which has not been regulated by the central bank of the country. Ireland accepts several types of cryptocurrencies and investors who want to start the procedure of Irish company formationmust also know that the country has its own cryptocurrency – the Irishcoin, which is generally used for tourism related payments. Although the field increased in popularity in the last years, at the moment, there are several companies which accept bitcoin transactions and an important aspect in this sense is that in Dublin, persons can use a bitcoin ATM, which was opened in 2014. Our team of Ireland company formation representatives can provide in-depth assistance on the registration of a cryptocurrency business and can also help you obtain a cryptocurrency license.
Laws regulating cryptocurrencies in Ireland
There are no special regulations related to opening a cryptocurrency company in Ireland, nor regulating transactions with virtual money, however, the Central Bank of Ireland set in place new rules for financial service provider engaged in such activities. These also apply for payment and electronic money providers dealing with digital tokens. Specifically, the National Bank has amended the Criminal Justice Money Laundering and Terrorist Financing Act (AML) in April 2021 with new provisions referring to virtual asset service providers (VASP).
The following types of operations can be completed by virtual asset service providers in Ireland:
- the exchange of virtual assets for fiat currencies;
- the exchange of one or more types of virtual assets;
- custodian and wallet provider services;
- the transfer of virtual assets;
- the participation and/or provision of financial services related to offerings (ICOs) or sale of cryptocurrencies.
Another new requirement implies for a company engaged in such activities to apply for a crypto license in Ireland.
Are there any special rules to open a cryptocurrency company in Ireland after 2021?
No, there are no specific rules applying to virtual asset service providers in Ireland in terms of registration, however, they are now required to appoint specific officers and apply for crypto licenses.
Here are the main requirements to comply with after registering the Irishcryptocurrency company with the Companies Register:
to appoint an officer to comply with the implementation, management and and oversight of compliance anti-money laundering regulations; the officer must be a member of the management board;
an anti-money laundering regulations compliance officer must also be appointed;
a risk assessment report must be drafted and filed with the National Bank when applying for a crypto license in Ireland;
Know-Your-Client (KYC) regulations must also be set in place at company level;
implementing and maintaining internal anti-money policies and controls;
create procedures for the identification of potential risks associated with transactions;
keep records of clients and their transactions;
ensure the staff is undergoing continuous training.
Apart from these, a crypto business is required continuously monitor transactions and file reports with the Financial Intelligence Unit (FIU) and the Revenue Commissioner if any suspicious financial activity arises.
With respect to the crypto license in Ireland, virtual asset service providers must obtain them with the National Bank.
We also invite you to read about this topic in the infographic below:
How to obtain a crypto license in Ireland
The requirements to obtain an Irish cryptocurrency license are not exhaustive, as the company must file the following information with the Central Bank:
- its anti-money laundering internal regulations and policies;
- proof that the managers and shareholders of the company have no criminal records.
Ireland is a great destination to start a cryptocurrency business, which is why if want to create such a business, you can rely on our company registration officers. We can also help you apply for a crypto license in Ireland.
Taxation of cryptocurrency transactions in Ireland
As a general rule, the Irish government does not impose strict regulations for cryptocurrency companies, as it is the case for other European jurisdictions, but there are certain aspects that are highly regulated.
The video below offers a short presentation on the registration of a cryptocurrency company in Ireland:
For example, the investors who want to open an company in Ireland in this industry will be required to register for taxation, just like in the case of any other legal entity operating in this country.
Entities registering profit through cryptocurrency transactions will need to register with the Irish Revenue for capital gains tax. Our team of company registration agents in Ireland can offer in-depth assistance on the tax regulations applicable in this case and it is important to know that any sum above EUR 1,270 will be imposed with a taxapplicable at the rate of 33%.
Cyrptocurrencies accepted in Ireland
The legislative system available here accepts several types of cryptocurrencies and investors who want to start the company formation in Irelandmay perform transactions in one of the following currencies:
Another relevant aspect for the usage of cryptocurrencies is that a wide range of businesses registered across the country allow transactions in one of the virtual currencies available in Ireland (small coffee shops, food shops and others), even though at the moment the market is rather small.
Types of cryptocurrency businesses in Ireland
Since the public interest for cryptocurrencies increased at a record rate, more and more investors have developed various types of business activities operating in this sector. With the assistance of various applications for mobile devices, numerous investors have created a wide range of services which promote a simpler access to the usage of cryptocurrencies.
For example, a start-up company registered in Ireland has recently developed an application that can be used on social media platforms, which informs any party interested in this subject on what cryptocurrency is. At the same time, the users of this new app can carry out cross-currency transactions. So far, the app recorded 50,000 downloads.
Other companies developed applications for wallets that can store bitcoin and similar virtual currencies, which may be used by largecompanies as well, as it benefits from a complex technology.
Further on, another start-up company is actively involved in creating smart contracts for the users of block-chain technologies. The main idea behind this type of agreement is to eliminate the assistance of a third-party, while enforcing a high degree of reliability and reduce therisks associated with cryptocurrency transactions.
Although the cryptocurrency sector is rather new on all international markets, numerous investors have already created a wide category of businesses which use virtual currencies. Some of the most successful start-up companies carry out their business operations in the following domains:
•cryptocurrency exchange, set up as a business through which investors can exchange a wide range of virtual currencies;
•gaming, which a developed field of activity accross the Irish territory;
•gambling - a type of activity that is regulated by a set of rules of laws, including in the case of gambling operations carried out in the online environment;
•cryptocurrency ATMs - Ireland was one of the first European markets that provided this type of ATM;
•selling goods - at the moment, only several types of goods can be purchased by using virtual currencies;
•payment gateways - investors use digital tokens to transfer various types of funds;
•consultancy - specialists in the cryptocurrency sector can provide their services to those who want to invest in this industry;
•learning platforms are created with the purpose of educating the general public on the manner in which virtual currencies work.
Why start a cryptocurrency exchange platform in Ireland?
One of the most common ways to start a business in Ireland in this sector is by setting up a cryptocurrency exchange platform, which has as a main purpose trading activities. In this sense, it will be necessary to set up a website that should include specific technical requirements.
A website set up for this purpose will act as stock exchange, in which the prices of the virtual commodities will vary depending on the trading volumes. Our team of Irish company formation consultants can provide more details in this sense.
Why enter the gaming industry in Ireland?
Ireland is one of the largest markets for international gaming companies. The industry provides a wide category of activities and more and more persons involved in gaming operations use virtual coins, such as Bitcoin, to purchase various products for multiplayer games. OurIrish company formation agents can help investors interested in this sector by assisting them through the entire process of company registration.
Why set up a cryptocurrency ATM in Ireland?
Creating a network of cryptocurrency ATMs across a region could provide a rapid return on investment and reduced maintenance costs for the company that owns them and this can be an attractive business idea, as the citizens of Dublin, Ireland, have already been familiarized with this type of ATMs.
Crypto use on the rise all around world
According to recent reports, cryptocurrencies are widely spread and used all over the world. Also:
- the International Monetary Fund estimates the cryptos market capitalization has reached USD 2.5 trillion;
- around 2.3 million people in the entire United Kingdom own assets in cryptocurrencies;
- 38% of them consider cryptocurrencies as alternative investment assets;
- in the European Union, in February 2022, the market capitalization of crypto assets was valued at EUR 1.5 trillion.
Businessmen are invited to contact our team of Ireland company formation consultants for further information on the Irish cryptocurrency businesses. If you want to apply for a crypto license in Ireland, feel free to request our help.
Paul Sheridan is one of our company formation specialists. He can help you establish your company in Ireland fast and easy.
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