Cryptocurrency service providers in Ireland will have to comply with money laundering rules and other basic regulations for the first time starting with April 2021.
Thus, starting in April 2021, virtual asset service providers (VASPs) will have to register with the Central Bank for anti-money laundering (AML) and countering the financing of terrorism (CFT) purposes after the latest European Union AML Directive is transposed into Irish law.
The change will impose new costs on virtual asset service providers (VASPs) and remove a layer of anonymity from crypto transactions that previously might have been done without the standard checks and balances of normal financial services, according to the Independent Ireland.
Crypto firms will now have to satisfy the regulator that they have sound AML and CFT policies and that their management meet the standards for fitness and probity in the financial industry. Furthermore, the change in supervisory rules will give the Central Bank the power to block senior appointments at the firms or to take enforcement action for failure to live up to AML or CFT laws.
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