These new laws extend the European Union’s AMLD-5 directive and focus specifically on wallets and exchange platforms
The Irish government is moving to strengthen national regulations on cryptocurrencies, with lawmakers proposing a new set of anti-money laundering laws.
Local reports indicate the proposed legislation will target the use of cryptocurrencies in illicit financial activities such as money laundering and the financing of terrorism.
The bill under consideration would place crypto businesses under the supervision of government agencies as part of a planned extension of the European Union’s Fifth Anti-Money Laundering Directive (AMLD-5) to explicitly cover the crypto sector. The measures are expected to focus in particular on wallets and exchange platforms.
The Irish Examiner also reported that Justice Minister Helen McEntee has already secured cabinet support to publish the “Money Laundering and Terrorist Financing (Amendment) Bill 2020.”
Beyond cryptocurrencies, the proposed law would also prevent Irish banks from maintaining anonymous safe-deposit accounts. Authorities say this is necessary to curb illicit actors who have moved unlawful funds across the continent by exploiting the EU’s internal passporting system. As a result, the draft legislation would include provisions to ensure proper identification of legal entities.
The new rules could make it harder for crypto entrepreneurs to establish a base in Ireland, especially given the compliance costs involved. In the past, the country’s commercial banks have been accused of screening out crypto-related firms and refusing to provide them with services.
Those difficulties have been linked to delays in transposing AMLD-5 into national law, delays that officials attribute to general elections and political deadlock.
Boinnex, a bitcoin ATM provider, recently had its account closed by AIB. Founder Bryan Tierney said the bank told them that “establishing a formal relationship with entities engaged in this type of business activity is outside our risk appetite at the moment.”
“We were forced to find a banking partner abroad. Many companies in the space are in the same situation. Some of those foreign banks charge exorbitant fees because they know they are the only ones providing those services,” Tierney explained.
Tierney also pointed out that banks’ reluctance to serve crypto businesses stands in stark contrast to the state’s promotion of the emerging industry.
Both AIB and Bank of Ireland have denied they are discriminating against crypto firms.
Translated by Carolane de Palmas