Companies working with other cryptocurrencies receive support and clear business conditions in this country. Note that the legislation in this area is still at the stage of development.
Crypto license regulation in Ireland
The jurisdiction does not have special rules for regulating transactions with cryptocurrencies, but there are no prohibitions associated with such transactions. The conduct of crypto business is governed by civil law, legislation on financial services, and settlements.
The Central Bank of Ireland deals with regulating financial services, payment systems, and electronic money. Dealing with crypto assets also requires registration with the Irish Revenue Service, particularly for capital gains tax purposes.
How to register a license to exchange cryptocurrencies in Ireland
In this case, we are not talking about a license in its traditional sense but about authorization at the Central Bank of Ireland, which is required for an operator to provide services related to virtual assets. Such authorization offers the right to perform several operations:
- exchange of virtual assets for fiat money;
- a trade involving one or more types of virtual assets;
- transfer of virtual assets that is, an act on behalf of another person that transfers virtual assets from one address or account to another;
- storage wallet services;
- participation in the provision of financial services related to the issuance and/or sale of virtual assets.
The procedure for applying authorization varies depending on the type of transactions involved. But two conditions must be met in any case:
- the company must confirm the ability to comply with anti-money laundering policies, as well as implement appropriate policies;
- managers and beneficiaries of the company must have an impeccable reputation.
Benefits from the authorization of the company (registration of a crypto license in Ireland)
The jurisdiction is attractive for the possibility of obtaining the following benefits after the authorization of a local company (getting a license for cryptocurrency in Ireland):
- favorable and profitable environment for working with crypto assets;
- opens up good trading opportunities for Bitcoin and other cryptocurrencies in the European Union;
- a quick and straightforward procedure for opening a company that will receive a license for the exchange of cryptocurrencies in Ireland without the personal presence of the founders (takes two weeks);
- low tax rates.
Additional Compliance Questions
In addition to the initial authorization with the Central Bank of Ireland, it is necessary to carry out some actions on an ongoing basis aimed at combating the laundering of funds obtained by illegal means:
- assessing the business for compliance with the requirements of the anti-money laundering legislation;
- conducting legal audit (due diligence) concerning clients;
- continuous monitoring of the activities and operations of clients;
- completing and filing suspicious transaction reports;
- development and implementation of anti-money laundering policies, as well as control over the implementation of such policies;
- training of personnel on the issue of combating money laundering.
As part of the authorization and subsequent compliance, it is necessary to:
- develop and implement appropriate internal policies and procedures to combat money laundering;
- assess the risks associated with laundering proceeds from crime;
- have a business plan indicating the types of activities envisaged, cash flows, as well as cases of outsourcing of compliance functions, etc.;
- store and provide up-to-date data on any direct or indirect ownership and management of the operating company;
- conduct individual surveys of persons involved in the management and control of the operating company;
- develop a plan for reporting on the laundering of proceeds from crime, as well as a procedure for reporting suspicious transactions;
- select qualified personnel and develop a training plan on combating money laundering.
Opening a crypto company
For registration in this jurisdiction, a private limited company is the most suitable option. Shareholders’ liability is limited to the amounts invested. Opening a company requires going through the approximate steps:
- Determining the types of intended transactions to be carried out through a crypto company in Ireland.
- Selection and verification of the name.
- Choice of legal address.
- Collection of information about the founders, beneficiaries, and managers.
- Drafting and execution of constituent and registration documents.
- Implementation of the registration process.
- Registration for tax and employment purposes.
- Opening a bank account for settlement transactions.
- Passing the authorization procedure at the Central Bank of Ireland by the type of intended financial transactions.
The specific authorization procedure is determined by the initial data of a particular case. Our lawyers are ready to advise in more detail on the issue.
Taxation
Occurs in a general manner based on the provisions of the relevant legislation. The activities of a company engaged in exchange and other operations with crypto assets are subject to the standard corporate tax rate of 12.5%.
