Name
Global FinTech Guide
Country _ Name
Ireland
SectionTitle
DLT and cryptocurrencies
Body
FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.

Introduction

Attitude of the country towards financial services using crypto currencies

From a social perspective, the interest in crypto currencies in Ireland has certainly risen in recent years. In its 2022 Global State of Crypto Report, Gemini has found that the Irish are amongst the most 'crypto-curious' countries in the world. In 2024, 12% of Irish people are recorded as currently owning or have previously owned crypto currency (a similar level of ownership to respondents in the UK, US, Australia, and Germany). Ireland already has a strong reputation as a hub for international financial services and the climate appears quite healthy for firms looking to develop in the crypto space.

Working groups have also been established to promote financial services using crypto currency such as Blockchain Ireland. The expert group of industry leaders, which was set up in 2015, is focused on the promotion of blockchain technology in Ireland with over 100 organisations. Blockchain Ireland also has both a public and private sector membership which helps financial services firms engage with their regulatory requirements.

Reservations still do however remain, particularly from the regulators. In March 2022, The Irish Central bank warned of the 'highly risky and speculative' nature of crypto assets, highlighting how they may not be suitable for retail customers, however, this outlook is likely to change with the introduction of the EU’s Markets in Crypto-Assets Regulation “MiCA” which has helped the EU become one of the largest regulated areas in the world for crypto-asset service providers.



Legal affairs

Obligations and requirements to provide financial services using crypto currencies described above

FinTechs and Financial services using crypto currencies and any other crypto-assets must be aware of MiCA which entered into force from June 2024 for providers of asset-referenced, e-money and other tokens and will come into effect for crypto-asset service providers ‘CASPs’ from December 2025. MiCA is dramatically changing the crypto landscape across EU member states as it introduces a single licensing regime across the European Union for crypto assets that are not currently caught by existing financial regulation.

For financial services firms operating in this space that are not otherwise in scope for MiCA, there are registration requirements imposed by the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021. All of these businesses in Ireland classified as Virtual Asset Service Providers need to complete the Central Bank of Ireland registration process.

Any person or entity carrying out VASP activities by way of business in Ireland without registration is at risk of facing criminal sanctions to include fines (up to a max of €500,000) or in more serious cases jail time (up to 5 years imprisonment).

The activities of crypto service providers may also be read in line with existing financial services legislation, principally EU Regulations (Market Abuse Regulation, Central Securities Depositories Regulation, and the Prospectus Regulation) and EU Directives (the Payment Services Directive, E-Money Directive, and MiFID).



Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

As mentioned above, FinTechs and Financial services using crypto currencies and any other crypto-assets must consider whether their activities bring them within the scope of MiCA which applied from June 2024 for providers of asset-referenced, e-money and other tokens.  It applied from December 2024 for crypto-asset service providers ‘CASPs’ with a 12 month transition period to facilitate pre-existing CASPs obtaining authorisation before December 2025. Discussions on the enactment of ‘MiCA II’ have already begun, which will look to fill in gaps caused by further innovation in the crypto-asset market since the passing of MiCA. It is not likely however, that such a regulation will be passed in the near future, though it is worth noting.



Economic conditions

Market size for financial services using crypto currencies and biggest companies in this business area

No data available regarding financial services using cryptocurrencies. However, crypto/digital asset services providers in Ireland include the following –

  • Paysafe Payment Solutions Limited;
  • Zodia Custody Ireland Limited;
  • Zodia Markets (Ireland) Limited;
  • Gemini Intergalactic Europe Limited;
  • Coinbase Custody International Limited;
  • Coinbase Europe Limited;
  • NoFrixion Limited;
  • Fortuna Digital Custody Limited;
  • Moonpay Technology Services Limited;
  • Payward Europe Solutions Limited;
  • Ripple Markets Ireland Limited;
  • Pionew Ireland Limited; and
  • Ramp Swaps (Ireland) Limited.


Additional comments regarding the economic situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

There is nothing further to add in relation to this point other than information which is otherwise set out above.



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