Victor Ugochukwu · Dec 14, 2020 . 5min read
Ireland To Limit Money Laundering and Regulate Cryptocurrencies
The Irish Cabinet is set to regulate cryptocurrency and combat money laundering. The bill will focus on the use of crypto in illicit financial activities.
By Komal Joshi · Aug 11, 2020 . 6min read
Cryptocurrencies like bitcoin are subjected to rules to prevent their abuse for money laundering. The Irish cabinet is set to implement “Money Laundering and Terrorist Financing Amendment Bill 2020” to comply with the fifth EU Money Laundering Directive. This would prove to be the first global regulatory effort to restrain the swiftly growing sector.
Impact of Money Laundering and Terrorist Financing Amendment Bill in Ireland
This bill will reportedly focus on the use of crypto in illicit financial activities. Illegal financial activities like money laundering and terrorist financing will be reprimanded. The law will introduce various new ‘designated bodies’ in the current legislation. This involves virtual currency providers and ‘wallet providers’ for virtual currencies, intermediaries and dealers in the art trade.
Aside from crypto, the new bill will limit Ireland’s banks from creating anonymous safety deposit boxes. Authorities in the country are reportedly concerned about “passporting” of illegal funds across the continent based on the EU’s internal open-border policy. An open border is a border that enables free movement of people and goods between jurisdictions. The movement has few or no restrictions. Additionally, it results in a lack of substantive border control. Thus, the bill will also include provisions for the proper identification of corporate entities.
Ireland’s new laws may pose further difficulties for crypto market participants in the country, primarily from the perspective of compliance’s cost. Moreover, commercial banks earlier faced accusations for crypto profiling in the nation. They have also declined to provide services to cryptocurrency businesses.
The European Banking Authority (EBA) also tweeted about Financial institutions not considering consumers with high money laundering or terrorist financing risks.
Earlier this week, cryptocurrency exchange Binance announced that it is launching its debit card in Ireland. Binance Card is joining a packed field for consumer fintech products where players like Revolut and N26 have accumulated sizeable strength in terms of the user base. At the same time, Coinbase, another cryptocurrency firm, launched its card last year. With the implementation of “Money Laundering and Terrorist Financing Amendment Bill 2020,” we await to see how cryptocurrency projects will flourish in the nation.
Follow Cryptodose for more updates.