Open a Cryptocurrency Company
The UK and Ireland are key jurisdictions in the development of the sector. LSC & Partners presence both in 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.
Why Register a Crypto-Trade 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 less than 30 days to complete without personal travel required..
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”.
Further Expand into Europe
For further expand into Europe, meaning the opening of company offices at any other EU country, to carry out business and management services from such alternative EU location, there will be 2 options:
a) 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).
b) The Irish company can/should alternatively register in such new EU location, register as well for crypto trade.
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.
Cryptocurrency Regulation 2019 in Ireland
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.
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
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 not too clear yet, due to some 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.
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 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.)
Financial futures and options
Exchange and interest-rate instruments
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.
Cryptocurrency in Ireland
According to Revenue, while companies are entitled to prepare their accounts in a currency other than euro, they are not entitled to do so in crypto – “Accounts, for tax purposes, cannot be prepared in cryptocurrencies: euro or functional currency accounts must be prepared”.
And when it comes to making a gain on a cryptocurrency, the Revenue guidance states that individuals will be subject to capital gains tax at a rate of 33% on gains, while losses will be allowable against offsetting CGT bills. For companies, chargeable gains will be subject to corporation tax 12,5%.
On VAT, Revenue says that as bitcoin and other crypto currencies are deemed to be “negotiable instruments”, they are exempt from VAT. This means that those engaged in exchanging cryptocurrencies won’t be subject to VAT.
In cases where employees are paid in bitcoin, the amount must be converted to euro at the time of the payment so that income tax can be calculated.
The territoriality aspect of cryptocurrencies is still an involving area. In the case of an Irish resident (and for an individual ordinarily resident) person, they will usually be liable to tax in Ireland on their worldwide income and gains (subject to any reliefs or exemptions, including double tax treaty reliefs).
A non-resident person will generally only be subject to tax on Irish-sourced income or gains, or profits of an Irish trade. (In the case of individuals, tax may also apply where amounts are remitted into Ireland.) It is evident therefore that understanding the source or situs of cryptocurrencies is of significance in international dealings. This is likely to be an area that will be developed further.
Digital Currency Business
Requirements to Incorporate and Register
Cryptocurrency Company in Ireland
Entities and individuals who:
– live or have a place of business in Ireland; and
– have the necessary professional expertise of trading in digital currency
What we offer you – Services and Inclusions
Processing and Registration Fees for your legal Irish entity
Draft of Constitution to be filed with CRO (Irish Registrar)
Tax Registration with Irish Revenue
Application for Irish Tax Identification Number
Preparing and draft of:
– Internal Procedures Manual
– Anti-Money Laundering & Compliance Procedures Manual;
Registration with Central Bank of Ireland (CBI) for AML purposes;
Supervision and review of all company documents, inclusive Business plan with 3-year projections;
Opening Bank Account in Europe;
Set of certified corporate documents for bank account opening services;
DHL Courier Services;
All you need to get your crypto registration fast and successful.
Additional Service Fees we can help you with
Nominee EEA Resident Director
Assistance to locate and rent a real Office Space)
Accountancy and Taxation Services
Annual Management and Ongoing Services
Full tax and legal support
Should you need more information about registering a digital currency trading company in Ireland, and getting your crypto business company duly registered, we welcome you to get in touch with one of our Business Development Managers.
We shall be at your entire disposal to help, assist and guide you all over this registration process.