Ireland requires crypto companies to comply with the KYC and AML rules because with the introduction of the regulatory measures, it’s no longer possible to trade anonymously in Ireland so let’s read more in our latest crypto news.
The European Union’s Fifth Anti-Money Laundering Directive was implemented into Irish Law and the virtual asset service providers that operate in the country now have three months to apply for registration with the central bank. The new AMLD directive was transposed into Irish law which means that Ireland required crypto companies that operate in the country now have to register with the central bank within a three-month period.
The new rules mean that the virtual asset service providers will have to comply with the anti-money laundering and know-your-customer policies as well as counter-terrorism financing as banks and other financial institutions do. Up until now, traders were able to buy and sell crypto anonymously in Ireland so now with the change in rules, the VASPs will be required to perform due diligence on their clients including accounting for the origin and destination of transactions, ID, and reporting suspicious activities.
According to the guidelines: “it is a criminal offense not to comply with the obligations,” and “a failure to do so may result in a fine, imprisonment or both.” The Irish central bank defined VASPs as any other company which provides exchange between crypto and fiat as well as custodian and other financial services that are related to financial assets. The Central Bank’s approach applies to individuals as well which means that the regulator will have the power to block some appointments. The VASPs will also make sure that such appointments passed a credibility test and are approved by the central bank in writing.
There were a few instances of crypto companies that shut down in other countries like the UK, France, and the Netherlands all because the new rules made their businesses unprofitable. The same will likely happen in Ireland according to CEO of KYC3 Jed Grand who said:
“New rules will force companies to leave and go to jurisdictions where there’s not so much control,” he said, and added that all companies will be forced to “innovate and build non-custodial solutions where they don’t actually hold any of the crypto.”
EU member states will see even stricter rules in the future with the deadline for the Sixth Anti-Money Laundering directive is looming.