Coinbase Secures Regulatory Approval to Operate as a Virtual Asset Service Provider in Ireland

December 22, 2022 Bitcoin.com

Coinbase secures VASP registration in Ireland

December 21, 2022 Coin Telegraph

Operations in the country will be overseen by Cormac Dinan, a former employee of Crypto.com, Deloitte and Citigroup.

Crypto exchange Coinbase was granted permission by the Central Bank of Ireland to act as a virtual asset service provider (VASP), according to a Dec. 21 announcement. The company’s operations in the country will be overseen by Cormac Dinan, a former employee of Crypto.com, Deloitte and Citigroup.

Under the VASP registration, Coinbase Ireland will be subject to the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.

Two Coinbase entities are covered by the VASP registration: Coinbase Europe Limited and Coinbase Custody International Limited. The first provides crypto trading services to European customers, while Coinbase Custody International provides crypto custody services to institutional clients across the region.

Nana Murugesan, vice president for international and business development at Coinbase, commented on the approval:

“Our Irish regulatory approval demonstrates our commitment and collaboration with the Central Bank of Ireland. Coinbase views regulation of the industry as an enabler for crypto’s growth, setting clear ground rules that will create an environment which encourages innovation and strengthens trust in the sector.”

The executive also emphasized the importance of the European Union’s political agreement on the Markets in Crypto-Assets framework in providing one of the most significant regulatory frameworks for crypto worldwide. According to Coinbase, additional registrations or license applications “are in progress in several major markets.”

In 2018, Coinbase started operating in Ireland after concerns about Brexit’s impacts on its business in EU countries. Since then, the company has been active in various activities, including market operations, compliance, cybersecurity, legal and customer experience. Coinbase obtained its first license in the country in 2019 when Ireland’s central bank granted it an e-money license, securing passporting for customers across the EU and European Economic Area.

Alongside Ireland, Coinbase has dedicated hubs in the United Kingdom and Germany; in the latter country, Coinbase is under scrutiny due to the outsourcing of some of its essential banking operations. In September, the company was registered with De Nederlandsche Bank, the central bank of the Netherlands, allowing the crypto exchange to offer its retail and institutional crypto products in the country.

Crypto trading platform Gemini was the first firm in the space to register as a VASP with the Central Bank of Ireland in July 2022.

Crypto adoption in Ireland down over 16% in the last year

August 25, 2022 Coin Telegraph

Coin Telegraph

Adults in Ireland have become slightly less interested in crypto with a drop in ownership from 12% to 10% in the last year.

The number of crypto investors in Ireland has decreased slightly in the past year, or so it appears according to recent data from Finder.com.

The report revealed that cryptocurrency adoption in the island nation has dropped by approximately 16.6% within the last year. Of the surveyed adult Irish internet users, 10% own cryptocurrency, as opposed to 12% in 2021.

Finder’s crypto specialist James Edwards commented that such a small decrease is actually a positive shock given the state of the bear market.

“We saw huge drops in the price of Bitcoin at the start of May and June and while we did see a reduction in the number of people holding cryptocurrency it’s not as severe as expected."

Edwards says the data suggests that despite the selloffs, the low drop in holders signals both hodlers and even more purchasing at discounted rates.

The survey also highlighted the dominance of Irish male investors over female investors, with 72% of surveyed holders being men. This gender gap is in line with the reality of the entire crypto space, which is highly male-dominated.

This is slowly changing as the space continues to integrate with various global industries. According to the BTCM Investor Study Report of 2021, the amount of women investors that entered the space increased by 126%.

Irish investors are most keen on Bitcoin (BTC) at 35% ownership among local users. This is followed by Dogecoin (DOGE) (26%) and Ether (ETH) (23%).

Generally, Ireland has been a friendly jurisdiction for cryptocurrency companies. In fact, in October 2021, Binance established three subsidiaries in Ireland and a fourth in November.

The crypto exchange Gemini received its virtual assets provider license in Ireland in July 20 of this year. Kraken and Ripple are two other crypto-centric companies that have chosen Ireland as the European headquarters.

Gemini receives virtual asset service provider license in Ireland

July 20, 2022 Coin Telegraph

Coin Telegraph

New York-based crypto exchange Gemini opened its local office in Dublin, Ireland, last year. Now, it is granted with a VASP license.

New York-based crypto trading platform Gemini claims to be the first one to get registered as a virtual asset service provider (VASP) by the Central Bank of Ireland (CBI). Earlier in February 2022, a company received an electronic money institution (EMI) authorization from the CBI.

The news was reported on Gemini’s official blog on Tuesday. As Gillian Lynch, head of Ireland and the European Union for Gemini, commented on the release:

“Gemini was founded on the ethos of asking for permission, not forgiveness. Since day one, Gemini has engaged with regulators around the world to help shape thoughtful regulation that both protects consumers and fosters innovation.”

Individuals and institutions in Ireland now can access Gemini’s exchange and custody services to buy, sell and store over 100 cryptocurrencies along with the euro and Great British pound.

The EU’s Fifth Anti-Money Laundering Directive, or 5AMLD, was transposed into Irish law in April 2021, making it illegal to operate in the country without the registration from the CBI and carrying out due diligence on clients — including identification, accounting for the origin and destination of their crypto assets and reporting suspicious financial activity.

The e-money license, for which Gemini applied in early 2020 and received in March 2022, has been allowing it to issue electronic money, provide electronic payment services and handle electronic payments for third parties, but to operate as an exchange.

Gemini opened its Dublin office in early 2021 and hired Gillian Lynch, a former executive at the Irish banking platform Leveris and Bank of Ireland, as head of Ireland and Europe. Kraken and Ripple have also selected the country as their European base, and Binance opened three subsidiaries in Ireland in September.

Republic of Ireland to Prohibit Political Cryptocurrency Donations

April 20, 2022 Bitcoin.com

Ireland bans political crypto donations on foreign interference fears

April 19, 2022 Coin Telegraph

campaign financing

A raft of new political and electoral integrity laws proposed in Ireland will see the banning of donations made in crypto to political parties in the country.

Donations made to political parties using cryptocurrencies will be banned in Ireland under new political integrity laws drafted due to concerns around foreign interference in politics.

Amendments proposed by Minister Darragh O’Brien also cover rules around foreign donations, misinformation, and other transparency requirements for political parties, citing fears of Russian interference in Ireland’s elections.

Speaking with the Independent on April 18th, O’Brien said that the laws will further protect Ireland’s democratic system “given the escalating threat of cyber warfare targeting free countries,” and a newly established Electoral Commission will oversee compliance with the laws.

It is unclear what percentage or monetary amount of political donations are currently paid to political parties or individuals using a cryptocurrency. Cointelegraph contacted Minister O’Brien and the Standards In Public Office Commission for comment but did not immediately hear back.

O’Brien started his campaign to reform the laws in January 2022, establishing a task force of political scientists and legal experts to investigate new election laws due to concerns about the escalating Russia-Ukraine war.

The task force advised on a series of measures that would build a “legal and digital bulwark” against election interference in the country, including parties providing streamlined accountancy reporting and declarations on adherence to the new political funding laws.

The banning of crypto political donations isn’t unheard of, the state of California banned the practice in 2018 citing issues of transparency and that cryptocurrencies are “hard to track”. Three other U.S. states, Oregon, Michigan, and North Carolina, also have laws against using cryptocurrencies in campaign financing according to data from Multistate.

The Irish central bank has taken an unfriendly approach to crypto in the past, as recently as February the bank stated it was unlikely to approve investment funds with exposure to crypto for retail investors as they lack a “high degree of expertise”.

The Central Bank of Ireland also issued a warning to consumers the following month on crypto assets, advising them to be mindful of “the risks of misleading advertisements, particularly on social media, where influencers are being paid to advertise crypto assets.”

Ireland’s central bank follows UK’s example in warning of crypto advertisements

March 22, 2022 Coin Telegraph

Central Bank

The central bank warned people to be mindful of "the risks of misleading advertisements, particularly on social media, where influencers are being paid to advertise crypto assets."

The Central Bank of Ireland issued a warning to consumers about the risks around crypto investments in addition to “misleading” advertisements, including those pushed by influencers on social media.

In a Tuesday notice, Ireland’s central bank said the warning was part of a campaign organized by the European Supervisory Authorities, made up of the European Securities and Markets Authority, the European Banking Authority, and the European Insurance and Occupational Pensions Authority. The Central Bank of Ireland said that cryptocurrencies were “highly risky and speculative” for retail investors and warned people to be mindful of “the risks of misleading advertisements, particularly on social media, where influencers are being paid to advertise crypto assets.”

“In Ireland and across the EU we are seeing increasing levels of advertising and aggressive promotion of crypto asset investments,” said Derville Rowland, the central bank’s director general of financial conduct. “Before you buy crypto assets, you need to think about whether you can afford to lose all the money you invest [...] People should also be aware that if things go wrong, you do not have the protections you would have if you invested in a regulated product.”

The Central Bank has today issued a fresh warning ❗️ on the risks of investing in crypto assets, as part of a European-wide campaign by the European Supervisory Authorities: https://t.co/G3joUvctrO pic.twitter.com/D5ygXYdpZj
— Central Bank of Ireland (@centralbank_ie) March 22, 2022

The central bank’s warning echoes that of global regulators and lawmakers cracking down on influencers peddling cryptocurrencies. In January, the Spanish government announced regulations for advertisements on crypto investments and services, which specifically included “products or services promoted via influencers.” The United Kingdom’s Advertising Standards Authority has also repeatedly warned crypto firms or alleged violations for advertisements dealing in digital assets.

In the United States, celebrities and influencers were associated with many of the alleged initial coin offering scams from 2018. Kim Kardashian’s Instagram account posted a story shilling the ERC-20 token EthereumMax (EMAX) in June 2021, causing the price to spike before falling more than 99% and leaving many retail investors in the red. At least one American celebrity, actor Ben McKenzie, has used his platform to push back against these types of high-profile endorsements.

Amid repeated warnings over crypto investments and advertisements, some firms have set up operations in Ireland. After opening the doors to its Dublin office in early 2021, crypto exchange Gemini received a license to provide electronic money services in the country. Binance established three subsidiaries in Ireland in September 2021, while crypto firms Ripple and Kraken chose the nation as the base to launch their European operations.

Gemini receives license to provide electronic money services in Ireland

March 21, 2022 Coin Telegraph

bitcoin regulation

The license does not allow Gemini to operate as an exchange in the country, but it will let it passport e-money services throughout the EEA.

Cryptocurrency exchange Gemini has received an electronic money license from the Central Bank of Ireland. It was the 18th organization to receive the license, and the first since October 2020. Gemini joined such license holders as Coinbase, Stripe, Square and Meta.

The e-money license, for which Gemini applied in early 2020 and received oMarch 14, will allow it to issue electronic money, provide electronic payment services and handle electronic payments for third parties. It will also enable the company to passport those services to European Economic Area countries, which are European Union members, Iceland, Liechtenstein and Norway. Gemini already provides exchange services in those countries.

Gemini also provides exchange and e-money services in the United Kingdom, thanks to its authorization by that country’s Financial Conduct Authority.

There is increasing consciousness in the country of the need for cryptocurrency regulation. The Oireachtas Finance Committee agreed to consider regulation in February when it requested briefing documents from the Central Bank and the Revenue Commissioners tax authority. The Central Bank already enforces European Anti-Money Laundering laws for virtual asset services providers.

Ireland has seen a growing crypto presence in the last year. Gemini opened its Dublin office in early 2021, and hired Gillian Lynch, a former executive at the Irish banking platform Leveris and Bank of Ireland, as head of Ireland and Europe. Kraken and Ripple (XRP) have also selected the country as their European base, and Binance (BNB) opened three subsidiaries in Ireland in September.

Back in February, Gemini joined the likes of Coinbase and Block as part of the Crypto Council for Innovation. At the time, the exchange stated it had spent $120,000 on lobbying activities within the U.S. in the second half of 2021.

Central Bank of Ireland nixes crypto funds: Too difficult ‘for a retail investor’

February 10, 2022 Coin Telegraph

AIF

The central bank feels that there is too much risk for retail investors who lack the expertise needed to trade crypto, but professional investors are welcome to continue trading.

The Central Bank of Ireland has stated that it is unlikely to approve investment funds for retail crypto investors because they lack the know-how to navigate the high-risk asset class.

The February 2022 report Securities Markets Risk Outlook Report: A Changing Landscape described crypto assets as a new product offering in securities markets that is complex and a “potential threat to investor protection.”

Although the bank fielded many queries last year about Alternative Investment Funds (AIF) regarding crypto, it is now not expected to approve an AIF for retail crypto investors. The bank feels that such investments “may be suitable for wholesale or professional investors,” but are too complicated for small fish:

“The Central Bank is highly unlikely to approve a UCITS or a Retail Investor AIF proposing any exposure to crypto-assets, taking into account the specific risks attached to crypto-assets and the possibility that appropriate risk assessment could be difficult for a retail investor without a high degree of expertise.”

A UCITS is an Undertaking for the Collective Investment of Transferable Securities which is used in the European Union (EU) as a regulatory framework for managing certain investments for sale across the EU.

Ireland’s Director of securities and markets supervision Patricia Dunne provided some explanation of the bank’s thinking to Bloomberg on Feb. 8, saying there are “too many unanswered questions around things like custody, money laundering, and even just volatility and liquidity” regarding retail crypto investing.

Regulatory attitudes to crypto in the nearby U.K. aren’t much more favorable with Her Majesty’s Revenue and Customs (HMRC) laying out strict new guidelines for DeFi taxation recently. There, returns made on crypto earned through staking are considered property, and thus subject to capital gains tax.

Yesterday, Russia’s government agreed on a regulatory scheme which will allow residents to trade crypto. Crypto will be treated as an “analogue of currencies” rather than a currency itself, and any transaction with a value greater than about $8,000 must be declared.

BNY Mellon Urges Ireland to Adopt Crypto Rules Before EU Regulations, Report Reveals

October 25, 2021 Bitcoin.com

Ireland

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