MiCA will become applicable for cryptoasset service providers (CASPs) from 30 December 2024. After this date, any firms seeking to establish themselves in Ireland to offer any CASP services will firstly need to be authorised by the Central Bank of Ireland.

Under the existing Virtual Asset Services Providers (VASP) regime, introduced in April 2021, firms seeking to provide any VASP activities are required to be registered by the Central Bank as a VASP prior to the commencement of operations.

The Strategy will set out a roadmap for the future evolution of the entire payments system, taking account of developments in digital payments, cash usage and how future changes should be made to the legislative criteria relating to access to cash.

Within the payment roadmap, the NPS will also look at cryptoassets, instant payments, open banking, and what new data needs to be collected on the payments landscape.

Deadline for comments is 14 February 2024.

“Today’s announcement of co‑ordinated international action on cryptoassets is a major step forward, marking another important milestone towards the widespread and co-ordinated approach to combat tax evasion through greater transparency and exchange of information,” Secretary-General Cormann said.

“We strongly welcome the extensive support being shown for quick action to make the international exchange of information collected under the OECD standard on cryptoasset reporting a reality. The international community can count on the OECD and the Global Forum on Transparency and Exchange of Information for Tax Purposes to ensure that the tax transparency architecture remains both up-to-date and effective going forward.”

The Crypto-Asset Reporting Framework (CARF) is a key component of the International Standards for Automatic Exchange of Information in Tax Matters developed by the OECD under a G20 mandate. It provides for the automatic exchange of tax-relevant information on cryptoassets and comes against the backdrop of a rapid adoption of the use of cryptoassets for a wide range of investment and financial uses.

The purpose of the consultation is to obtain submissions on the transposition of national discretions included within MiCA. 

The four national discretions the consultation seeks feedback on include:

• Article 88 (1): Public disclosure of inside information
• Article  111 (2):  Administrative penalties and other administrative measures
• Article 143 (2): MiCA transition period; and
• Article 143 (6): Simplified authorisation procedure.

Section 5 of the consultation sets out detail of the national discretions contained within  MiCA and  the  Department  invites  comments  on  whether  these discretions should be availed of, how they should be availed of and clear reasoning for such a position

Deadline for comments is 15 September 2023. 

He said: "My view is that the claimed benefits of ‘unbacked crypto’ should be treated with a large dose of scepticism.  The purchase of such products can be similar to purchasing a lottery ticket: you might win but you probably won’t.  And describing it as 'investment' is, needless to say, an abuse of the word; 'Ponzi schemes' might be more accurate."

The Governor expressed concern about advertising of crypto, saying the Bank is worried at the potential for consumer harm and discouraged marketing of cryptocurrencies to the public. He added that a particular concern for him was "aggressive advertising – which is sometimes false or misleading – through the use of 'influencers' to promote crypto while not disclosing the fact they are being paid."

He suggested that the crypto market "should be treated no differently to other financial markets with similar rules on the treatment of client funds, and on disclosures, governance, risk management and information exchange."  The vulnerabilities need to be "managed in a timely way" and "we will work with colleagues across the EU and at global fora such as the Financial Stability Board to ensure a rigorous regime that promotes a level playing field and avoids regulatory arbitrage in the interests of the community at large."

The bulletin outlines key issues identified through the assessment process, sets out the Central Bank’s expectations in relation to key AML/CFT requirements, and advises firms that registered VASPs, as with all supervised entities, will be subject to a supervisory levy.

The Central Bank again emphasised that cryptoassets are highly risky and speculative, and may not be suitable for retail customers. In particular people need to be alert to the risks of misleading advertisements, particularly on social media, where influencers are being paid to advertise cryptoassets.