The EU’s AML/CFT act is set to launch in December.
In advance of the upcoming Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) laws from the European Union, Ireland is working to create new cryptocurrency regulations.
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 details of the new law are still unknown, and it is not clear when the revised regulations will be put into effect.
EU’s AML Law Set to Launch in December
Financial intelligence units will have much more power after the EU’s AML/CFT act takes effect in December, including the ability to halt suspicious transactions.
Stricter reporting requirements for cryptocurrency exchanges are introduced by the legislation, and cash payments are limited to €10,000 ($10,850).
Along with stricter reporting requirements for high-value activities, it also mandates improved oversight of sizable transactions.
In addition to other regulations like the Markets in Crypto-Assets (MiCA) regulation, the framework attempts to reduce risks in domains like crowdfunding and cryptocurrency assets.
In a statement released last month, Derville Rowland, deputy governor of the Central Bank of Ireland, underlined the nation’s dedication to innovation in the financial sector under MiCA.
She emphasized that in order for Europe to take the lead in technological adoption and adaptation, strong crypto regulations are essential.
Different from the AML/CFT act, the MiCA regulations have been in force since June 2023.
Given Ireland’s status as a small, open economy with a thriving financial services sector, the Central Bank of Ireland stressed the significance of protecting its financial system from misuse for money laundering or terrorist activities.
Gemini, Ripple, Paysafe, Moonpay, and Coinbase were among the fifteen virtual asset service providers approved by the Central Bank as of July.
In accordance with legal requirements, Coinbase also pledged to remove non-compliant stablecoins from its European platform.
Crypto Firms Prepare for MiCA
The European Union created the Markets in Crypto Assets framework, or MiCA, as a comprehensive regulatory framework to bring uniformity to crypto laws across its member states.
The European Parliament gave it approval in April 2023, and its regulations are being gradually put into effect.
Stablecoins issued in the region are subject to stricter regulations as part of the MiCA framework.
Stablecoin-related provisions are among the many that are being gradually implemented; full compliance is anticipated by the end of this year.
Issuers of stablecoins were obliged to adhere to particular MiCA regulations as of June 30.
On July 1, Circle, the company that issues USDC, became the first stablecoin company worldwide to comply with MiCA.
Even though MiCA is generating a lot of excitement, some business executives have voiced reservations.
Following Bitstamp’s announcement of USDT’s delisting, Paolo Ardoino, the CEO of Tether, criticized MiCA’s complexity and potential risks, stating that it could make things more difficult for stablecoin issuers.
In addition, Binance has modified its strategy, restricting access to unapproved stablecoins in Europe but leaving them on the list.
Furthermore, blockchain businesses and decentralized finance (DeFi) protocols have faced difficulties in putting the MiCA regulatory framework into practice.