Open A Cryptocurrency Company in Ireland

TBA will Help and Assist you
Opening Bank Account
For your Irish Cryptocurrency entity

The UK and Ireland are key jurisdictions in the development of this sector. TBA presence in both Dublin and London combined with the team’s cryptocurrency and blockchain experience, uniquely positions us to meet the ever-changing demands of companies and individuals involved in this area.

The crypto market has proved to be a lucrative industry on a global scale. Ireland stands as one of the major European markets for cryptocurrency companies. The country even has its own virtual currency known as the Irish coin. However, it also supports most of the major cryptocurrencies such as Bitcoin and Ethereum. In Ireland’s major cities such as Dublin, you will even find a bitcoin ATMs.

The upside to Ireland is that a wide range of businesses across the country already accept the Irish coin. At the moment the majority of the virtual currency market is still limited to coffee shops and food shops but it’s probably promising to expand to other industries soon.

Why register a bitcoin company in Ireland?

Ireland is the perfect gateway to do business and trade Bitcoin in the European Union;
One of the oldest bitcoin services providers, BitEx is based in Ireland;
Ireland hosts multiple global financial and information technology giants;
Corporate taxation in Ireland is low at 12.5%;
Blockchain Association of Ireland is bullish about the current state of the world’s most popular crypto- currency;
The Central Bank in Ireland considers implementing a bitcoin recognition procedure.

Registering a Bitcoin company in Ireland takes just 2 weeks to complete without personal travel required.

Cryptocurrency Regulation 2019

There is no specific cryptocurrency regulation in Ireland, but there is also no specific prohibition in Ireland on any activities related to cryptocurrency.

The investors who want to open a company in Ireland in this industry will be required to register for taxation with the Irish Revenue for capital gains (just like in the case of any other legal entity operating in this country) and with Central Bank of Ireland (CBI) for Anti-Money Laundering purposes.

The CBI (Central Bank of Ireland) is the competent authority in Ireland for the regulation of financial services including electronic money, payment services and securities law. The CBI has yet to indicate the extent to which existing financial regulation will apply. The CBI has issued warnings in relation to ICOs and cryptocurrencies and has also contributed to the European Securities and Markets Authority (ESMA)’s warnings to both consumers and to firms engaged in ICOs.

In respect of cryptocurrency regulation, we expect that the CBI will focus on securities law and the recognised EU concepts of “transferable security” and “financial instruments” as defined in the 2014 European Union Markets in Financial Instruments Directive (MiFID II) and the characteristics which they view as bringing cryptocurrencies or tokens within those definitions. Depending on their structure, cryptocurrencies could be classified as transferable securities, which would bring them within scope of a range of securities laws. For example, the issuer of a cryptocurrency may be required to publish a prospectus (or avail of an exemption) prior to their being offered to the public, or certain activities in respect of the cryptocurrency may require authorisation as an investment firm under MiFID II.

A pure, decentralised cryptocurrency is unlikely to be a transferable security, while a token with characteristics similar to a traditional share or bond may be. It is also possible that true “utility” tokens intended for exclusive use on a platform or service will not be transferable securities. The definition of transferable security is non-exhaustive, and it is for each issuer and their advisers to determine whether their cryptocurrency or token is a transferable security.

As in many jurisdictions, the regulatory environment in relation to cryptocurrencies and their interaction with securities law is not yet settled and ESMA acknowledges that depending on how an ICO is structured, it may fall outside the regulated space entirely.

Remark:
To the extent that virtual currencies, ICOs, or those involved in their issuance or trading, are not subject to existing regulation, then the question arises: has the regulation fallen behind developments and needs updating. Or is it the case that these activities are just new examples of old types of activity and there is no need for further regulatory intervention, beyond making consumers properly aware of the significant risks through consumer warnings? Or might it simply be too early to say? . . . At the Central Bank, we are actively engaged with other European and international policy makers as we all try to figure out a way forward, including for example, work at the ESAs [European Supervisory Authorities]. Given the cross-jurisdictional nature of virtual currencies and ICOs, we at the Central Bank welcome these efforts by the ESAs.
Ireland has harnessed the use of cryptocurrency to help its tourism industry, adopting the “Irishcoin,” a currency aimed predominantly at the tourism market that is accepted in some locations across Ireland.[

Money Transmission Laws and Anti-Money Laundering Requirements

There is a risk that certain ancillary services in connection with cryptocurrency could be subject to regulation as a form of money remittance or transmission under the Payment Services Directive (PSD) or, where PSD does not apply, under the Irish regulatory regime for money transmission. For example, the operator of a cryptocurrency platform who settles payments of fiat currency between the buyers and sellers of cryptocurrency could be viewed as being engaged in the regulated activity of money remittance/transmission. There are a number of exemptions which may be applicable, for example, where the platform operator is acting as a commercial agent or where the platform could be viewed as a securities settlement system. The application of the exemption would depend on the features of the trading platform.

The application of existing Irish anti-money laundering requirements to cryptocurrencies is unclear due to uncertainty surrounding the regulatory status of cryptocurrency. Where the cryptocurrency or any activity relating to it is subject to regulation (e.g. it has the characteristics of transferable security), then Irish anti-money laundering requirements will apply.

The 5th Anti-Money Laundering Directive (AMLD5) will impose new anti-money laundering requirements on cryptocurrency exchanges and custodians operating in Europe. AMLD5 has not yet been implemented in Ireland.

Ownership and Licensing Requirements

In principle, there are no specific ownership and licensing requirement set out with regard to cryptocurrency. More specifically, while heavily regulated retail funds (e.g. UCITS funds) have specific restrictions on the type and diversity of assets they can hold, which restrictions would likely exclude cryptocurrencies, there are no generally applicable restrictions on investment managers owning cryptocurrencies for investment purposes. In addition, no specific licensing requirements are imposed on anyone who holds cryptocurrency as an investment advisor or fund manager.

Mining

There are no restrictions in Ireland on the mining of cryptocurrency. As noted above in the “Cryptocurrency regulation” section, the regulatory status of cryptocurrency in Ireland is uncertain. It is likely that the focus going forward will be on securities law.

Mining of cryptocurrency is a technical process relating to the release of new cryptocurrency and the tracking of cryptocurrency transactions on a blockchain. Where the cryptocurrency is a form of transferable security, the mining activity could be viewed as a form of securities settlement system. However, as the mining is carried out on a decentralised basis, it does not fit neatly into any existing regime for securities settlement. On that basis, we would view mining as an unregulated activity under Irish law.

Border Restrictions and declaration

In Ireland, there are no border restrictions or obligations which are specifically aimed at cryptocurrencies. The traditional reporting requirements for “cash” (which is defined as currency, cheques and money orders or promissory notes) when entering or leaving the European Union do not apply to virtual or cryptocurrencies. This is because they are deemed to be neither “cash” nor “currency”.

Passporting Rights
Further Expand into Europe

For further expand into Europe, Cryptocurrency exchanges are required to hold an e-money license from the Central Bank of Ireland; this license will help the exchange expand its Irish operations, as well as allow it secure passporting for customers across the European Union (EU) and the European Economic Area (EEA).

Passporting allows a firm registered in the European region to do business in any other member state without the need for further authorization from each country.

Reporting Requirements

In respect of financial regulation, there are currently no specific reporting requirements relating to cryptocurrencies. Where the cryptocurrency or any activity related to it is subject to regulation, then Irish anti-money laundering requirements will apply. This will include obligations to submit suspicious transaction reports to the Garda Síochana and the Revenue Commissioners.

Registration for AML Purposes

Central Bank of Ireland warns certain firms need to register for AML purposes; a number of firms will need to register with the Central Bank as ‘Schedule 2 firms’.

The Central Bank of Ireland has posted a guidance for registration of the so-called “Schedule 2 Firms”. This type of registration must be done for anti-money laundering (AML) purposes.
The regulator explains that, on November 26, 2018, Section 108A of the Criminal Justice (Money Laundering and Terrorist Financing), (Amendment) Act 2010 introduced for the first time a statutory requirement for certain firms to register for anti-money laundering purposes with the Central Bank of Ireland. The central bank is the competent authority in Ireland for the monitoring and supervision of financial and credit institutions’ compliance with their obligations under the Act. The Central Bank is empowered to take measures that are reasonably necessary to ensure that credit and financial institutions comply with the provisions of the Act.

If a firm offers any of the following services and it is not otherwise authorised or licenced to carry on business by the Central Bank, then it will need to register with the Central Bank as a ‘Schedule 2 firm’.

Schedule 2 Activities:

1. Lending including inter alia: consumer credit, credit agreements relating to immovable property, factoring, with or without recourse, financing of commercial transactions (including forfeiting).
2. Financial leasing.
3. Payment services as defined in Article 4(3) of Directive 2007/64/EC of the European Parliament and of the Council of 13 November 200714 on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC.
4. Issuing and administering other means of payment (e.g. travellers’ cheques and bankers’ drafts) insofar as such activity is not covered by point 3.
5. Guarantees and commitments.
6. Trading for own account or for account of customers in any of the following:
Money market instruments (cheques, bills, certificates of deposit, etc.)
Foreign exchange
Financial futures and options
Exchange and interest-rate instruments
Transferable securities.
7. Participation in securities issues and the provision of services relating to such issues.
8. Advice to undertakings on capital structure, industrial strategy and related questions and advice as well as services relating to mergers and the purchase of undertakings.
9. Money broking.
10. Portfolio management and advice.
11. Safekeeping and administration of securities.
12. Safe custody services.
13. Issuing electronic money.

There are however some exemptions from the Obligation to Register – Do Contact Us for further and related information.

Types of Virtual Businesses you can open in Ireland

Crypto ATM
Irish citizens are already familiar with the crypto ATMs of their own national virtual currency. However, there are not so many cryptocurrency ATMs for other currencies like Bitcoin and Ethereum. As result setting up a network of cryptocurrency in Ireland can be very rewarding, ATMs will provide a rapid ROI and they are not hard to maintain.

Cryptocurrency exchange platform
Cryptocurrency exchange platforms are the most common crypto business entities in Ireland. The exchange platforms are generally websites which act as the crypto stock exchange platform and allow users to perform trading activities. As a result, the prices of virtual commodities will vary depending on the trading volumes

Gaming
Most games facilitate the use of Bitcoin and other cryptocurrencies to access premium game products. Ireland is home to a large variety of international gaming companies and investors interested in cryptocurrencies can use gaming as a great avenue.

Crypto App
A number of Startup crypto companies are leveraging on mobile and web applications. These apps provide a very convenient and easy way to access cryptocurrencies. App users can perform cross-currency transactions, use app wallets among many others.

Why TBA

What separates us from our competitors is that our services don’t end with the registration of your company. We offer a wide range of additional services others can’t or just won’t offer, such as lifetime free support.

Whilst most providers either specialise on personalized consultation at relatively high rates or run bulk registration factories without any support, we want to offer the positive aspects of both types.
Therefore TBA combines professional advice, worldwide registration services, reasonable fees, customized order processing, lifetime support and fast processing. Where others see company formation services as a bulk registration with no support and no individual assistance, we do care about your business needs

Should you have any question or matter
You would like to discuss or clarify with us

Or

Should you like to receive further Information
About our services and fees, …

Our multi-lingual team of business advisors is happy to assist you with all upcoming questions and issues in relation to your company.

You may call or email us, and we will be happy to assist you in a fast and efficient manner.

You can also come and visit us at our Limassol offices to discuss issues face to face if you prefer. Just arrange an appointment and we will be happy to meet with you.


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Please do Contact us
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