There is no specific legal framework to comply with if you want to open a crypto company or become a Virtual Asset Service Provider (VASP) in Ireland. However, you need to adhere to the regulations of the National Bank which implies obtaining a crypto license in Ireland.
If you want to obtain such a license to carry out crypto-related operations, you can rely on our specialists in company formation in Ireland.
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Laws regulating cryptocurrencies in Ireland
There are no special regulations related to transactions with virtual money. However, the Central Bank of Ireland set in place new rules for financial service providers engaged in such activities. These also apply to payment and electronic money providers dealing with digital tokens. Specifically, the National Bank amended the Criminal Justice Money Laundering and Terrorist Financing Act (AML) in April 2021 with new provisions referring to Virtual Asset Service Providers.
| Quick Facts | |
|---|---|
| Special legislation available (YES/NO) | No, Ireland does not have a specific law in place yet. |
Regulatory authority | The Irish Central Bank. |
Types of entities used to register the company | Private and public limited liability companies are accepted. |
| Local manager required (YES/NO) | Yes, an Irish crypto company must have at least one local director. |
| Special requirements for the manager (if any) | Yes, the manager must have a good conduct and no criminal record. |
| Minimum capital requisites (YES/NO) | – 1 EUR for a private limited liability company, – EUR 25,000 when set up as a public company. |
| License required (YES/NO) | Yes, a crypto license must be obtained by Irish companies seeking to operate in this sector. |
| Timeframe to register the company (approx.) | Approx. 10 business days. |
| Timeframe to obtain a crypto license in Ireland (approx.) | Around 9 months. |
| Anti-money laundering regulations applicable (YES/NO) | Yes, Virtual Asset Service Providers in Ireland must comply with anti-money laundering regulations. |
| Specific requirements for foreign investors (YES/NO) | No, foreign citizens must comply with the same rules as local ones. |
| Activities permitted for crypto companies | – crypto exchanges, – virtual asset trading activities, – electronic wallet services, – virtual money transfer activities, etc. |
| Taxation of crypto companies in Ireland | The standard 12.5% rate applies to crypto companies. |
| Why choose Ireland | – simple company registration procedure, – possibility to use digital coins that are accepted in most EU countries, – favorable taxation system. |
| Support in setting up a crypto company in Ireland (YES/NO) | Yes, you can rely on our specialists if you want to open a crypto company in Ireland. |
The following types of operations can be completed by Virtual Asset Service Providers in Ireland:
- the exchange of virtual assets for fiat currencies;
- the exchange of one or more types of virtual assets;
- custodian and wallet provider services;
- the transfer of virtual assets;
- the participation and/or provision of financial services related to offerings (ICOs) or sale of cryptocurrencies.
Another new requirement implies that a company engaged in such activities to apply for a crypto license in Ireland.
Are there any special rules to open a cryptocurrency company in Ireland after 2021?
No, there are no specific rules applying to virtual asset service providers in Ireland in terms of registration, however, they are now required to appoint specific officers and apply for crypto licenses.
Here are the main requirements to comply with after registering the Irish cryptocurrency company with the Companies Register:
- to appoint an officer to comply with the implementation, management, and oversight of compliance anti-money laundering regulations; the officer must be a member of the management board;
- an anti-money laundering regulations compliance officer must also be appointed;
- a risk assessment report must be drafted and filed with the National Bank when applying for a crypto license in Ireland;
- Know-Your-Client (KYC) regulations must also be set in place at the company level;
- implementing and maintaining internal anti-money policies and controls;
- create procedures for the identification of potential risks associated with transactions;
- keep records of clients and their transactions;
- ensure the staff is undergoing continuous training.
Apart from these, a crypto business is required to continuously monitor transactions and file reports with the Financial Intelligence Unit (FIU) and the Revenue Commissioner if any suspicious financial activity arises.
With respect to the crypto license in Ireland, virtual asset service providers must obtain them with the National Bank.
Filing for a VASP license in Ireland
Applying for a crypto license in Ireland is simpler compared to obtaining a financial business permit, for example. This happens as the former sector benefits from less stringent legal requirements.
The steps to become a Virtual Asset Service Provider in Ireland implies:
- filing an application with the Central Bank, which enables the company to pre-register for the license;
- then, the National Bank will evaluate the application and confirm the VASP if it meets the licensing conditions;
- following that, the company will obtain its Irish crypto license.
Please note that the procedure may take up to 9 months and refers to both pre-registration and registration.
Our local agents can help you set up a company in Ireland to become a Virtual Asset Service Provider.
We also invite you to read about this topic in the infographic below:
Conditions to obtain a crypto license in Ireland
The requirements to obtain an Irish cryptocurrency license are not exhaustive, as the company must file the following information with the Central Bank:
- its anti-money laundering internal regulations and policies;
- proof that the managers and shareholders of the company have no criminal records.
Ireland is a great destination to start a cryptocurrency business, which is why if want to create such a business, you can rely on our company registration officers. We can also help you apply for a crypto license in Ireland.
Appointment of officers for an Irish crypto company
Setting up a crypto business in Ireland also requires the appointment of key personnel. Among these are directors and managers who must respect the Fitness and Probity Regime. For this, purpose, a VASP must nominate agents for:
- controlled positions;
- pre-approval controlled positions.
The requirements to meet by these persons are:
- they must meet the Irish National Bank’s standards in terms of integrity and probity;
- they must adhere to these standards.
In addition, the appointed officers must also have a good reputation.
If you need guidance on the Fitness and Probity Regime, you can consult with our company registration agents in Ireland.
Taxation of cryptocurrency transactions in Ireland
As a general rule, the Irish government does not impose strict regulations for cryptocurrency companies, as is the case for other European jurisdictions, but there are certain aspects that are highly regulated.
The video below offers a short presentation on the registration of a cryptocurrency company in Ireland:
For example, investors who want to open a company in Ireland in this industry will be required to register for taxation, just like in the case of any other legal entity operating in this country.
Entities registering profit through cryptocurrency transactions will need to register with the Irish Revenue for capital gains tax. Our team of company registration agents in Ireland can offer in-depth assistance on the tax regulations applicable in this case and it is important to know that any sum above EUR 1,270 will be imposed with a tax applicable at the rate of 33%.
Cryptocurrencies accepted in Ireland
Cryptocurrency in Ireland refers to a type of payment that is available only for online transactions and it is known as virtual money which has not been regulated by the central bank of the country. Ireland accepts several types of cryptocurrencies and investors who want to start the procedure of Irish company formation must also know that the country has its own cryptocurrency – the Irishcoin, which is generally used for tourism-related payments. Although the field increased in popularity in the last years, at the moment, there are several companies that accept Bitcoin transactions. An important aspect in this sense is that in Dublin, people can use a Bitcoin ATM, which was opened in 2014. Our team of Irish company formation representatives can provide in-depth assistance on the registration of cryptocurrency businesses and can also help you obtain a cryptocurrency license.
The legislative system available here accepts several types of cryptocurrencies and investors who want to start the company formation in Ireland may perform transactions in one of the following currencies:
- Bitcoin;
- Ethereum;
Another relevant aspect of the usage of cryptocurrencies is that a wide range of businesses registered across the country allow transactions in one of the virtual currencies available in Ireland (small coffee shops, food shops, and others), even though at the moment the market is rather small.
Types of cryptocurrency businesses in Ireland
Since the public interest in cryptocurrencies increased at a record rate, more and more investors have developed various types of business activities operating in this sector. With the assistance of various applications for mobile devices, numerous investors have created a wide range of services that promote simpler access to the usage of cryptocurrencies.
For example, a start-up company registered in Ireland has recently developed an application that can be used on social media platforms, which informs any party interested in this subject on what cryptocurrency is. At the same time, the users of this new app can carry out cross-currency transactions.
Other companies developed applications for wallets that can store Bitcoin and similar virtual currencies, which may be used by large companies as well, as it benefits from a complex technology.
Further on, another start-up company is actively involved in creating smart contracts for the users of blockchain technologies. The main idea behind this type of agreement is to eliminate the assistance of a third-party, while enforcing a high degree of reliability and reducing the risks associated with cryptocurrency transactions.
Although the cryptocurrency sector is rather new on all international markets, numerous investors have already created a wide category of businesses that use virtual currencies. Some of the most successful start-up companies carry out their business operations in the following domains:
- cryptocurrency exchange created as a business through which investors can exchange a wide range of virtual currencies;
- gaming, which is a developed field of activity across the Irish territory;
- gambling – a type of activity that is regulated by a set of rules or laws, including in the case of gambling operations carried out in the online environment;
- cryptocurrency ATMs – Ireland was one of the first European markets that provided this type of ATM;
- selling goods – at the moment, only several types of goods can be purchased by using virtual currencies;
- payment gateways – investors use digital tokens to transfer various types of funds;
- consultancy – specialists in the cryptocurrency sector can provide their services to those who want to invest in this industry;
- learning platforms are created with the purpose of educating the general public on the manner in which virtual currencies work.
Why start a cryptocurrency exchange platform in Ireland?
One of the most common ways to start a business in Ireland in this sector is by setting up a cryptocurrency exchange platform, which has as a main purpose trading activities. In this sense, it will be necessary to set up a website that should include specific technical requirements.
A website set up for this purpose will act as a stock exchange, in which the prices of the virtual commodities will vary depending on the trading volumes. Our team of Irish company formation consultants can provide more details in this sense.
Why enter the gaming industry in Ireland?
Ireland is one of the largest markets for international gaming companies. The industry provides a wide category of activities and more and more persons involved in gaming operations use virtual coins, such as Bitcoin, to purchase various products for multiplayer games. Our Irish company formation agents can help investors interested in this sector by assisting them through the entire process of company registration.
Why set up a cryptocurrency ATM in Ireland?
Creating a network of cryptocurrency ATMs across a region could provide a rapid return on investment and reduced maintenance costs for the company that owns them and this can be an attractive business idea, as the citizens of Dublin, Ireland, have already been familiarized with this type of ATMs.
Crypto activities in Ireland
The Irish crypto market is in full development, according to the following data:
- by the end of 2024, the revenue of this sector is expected to reach USD 225,4 million;
- by the end of 2025, the market is expected to grow by 3.90%;
- at the level of 2024, the average revenue per user is approximated at USD 71.6;
- by the end of 2025, the number of users in the Irish crypto market is projected to reach 3.17 million.
Businessmen are invited to contact our team of Ireland company formation consultants for further information on the Irish cryptocurrency businesses. If you want to apply for a crypto license in Ireland, feel free to request our help.