Gemini receives virtual asset service provider license in Ireland

July 20, 2022 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.

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EU eyes new money laundering regulator and stricter crypto reporting requirements

July 9, 2021 Coin Telegraph

anti-money laundering

The new Anti-Money Laundering Authority would comprise the “centerpiece” of a new supervisory system that would include national regulators.

The European Union is looking to launch a new agency designated with cracking down on money laundering at the regional level, with increased reporting requirements around crypto transactions listed among its principal objectives.

A July 8 report from Reuters citing leaked EU documents asserts the European Commission is proposing forming a new Anti-Money Laundering Authority (AMLA) that would act as the “centerpiece” of an oversight system also including national regulators.

The report also states that European lawmakers are drafting new requirements for virtual asset service providers (VASPs) mandating stringent data collection standards surrounding parties making cryptocurrency transfers. Data collected would also be made accessible to European regulators.

The report notes that crypto asset transfers are not currently under the scope of EU regulations surrounding financial services, stating:

“The lack of such rules leaves holders of crypto-assets exposed to money laundering and financing of terrorism risks, as flows of illicit money can be done through transfers of crypto-assets.”

The EU has come under pressure to strengthen its anti-money laundering guidelines after several member states launched investigations into Denmark’s largest bank, Danske Bank, over 200 billion euro worth of suspicious transactions that flowed through its small Estonian branch between 2007 and 2015.

In the absence of a supranational regulatory institution tasked with policing money laundering, the EU has historically had to rely on national authorities to enforce its policies.

“Money laundering, terrorist financing, and organized crime remain significant problems which should be addressed at Union level,” the documents stated.

“By directly supervising and taking decisions towards some of the riskiest cross-border financial sector obliged entities, the Authority will contribute directly to preventing incidents of money laundering/terrorist financing in the Union.”

SEC urged to crack down too

Europe isn’t alone in moving to crack down on crypto, with U.S. Senator Elizabeth Warren urging the Securities and Exchange Commission to crack down on the “highly opaque and volatile” digital asset markets on the same day.

“While demand for cryptocurrencies and the use of cryptocurrency exchanges have sky-rocketed, the lack of common-sense regulations has left ordinary investors at the mercy of manipulators and fraudsters,” Warren said, adding:

“These regulatory gaps endanger consumers and investors and undermine the safety of our financial markets. The SEC must use its full authority to address these risks, and Congress must also step up to close these regulatory gaps.”

The U.K. Financial Conduct Authority (FCA) has also sought to take action against major crypto exchange Binance in recent weeks, appearing to prompt a wave of local banks to stop processing payments to and from the platform.

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