The central bank of Ireland has extended the anti-money laundering laws to cryptocurrency firms – starting from April, companies will have to conduct special customer checks.
In addition to implementing anti-money laundering procedures, Irish cryptocurrency firms will have to comply with other basic requirements of local regulators. Such procedures should be implemented by both cryptocurrency exchanges and digital asset companies and financial service providers for these firms.
According to the Fifth Anti-Money Laundering Directive (AMLD5) of the European Union, companies working with cryptocurrencies must identify the sender and recipient of funds. The introduction of such procedures will increase the cost of doing business, as well as reduce the level of anonymity in the cryptocurrency space in Ireland.
Also, changes in the laws will allow the Central Bank of Ireland to control appointments to management positions of cryptocurrency firms and take various preventive measures in case of non-compliance with AMLD5 norms. Irish officials hope the requirements will make crypto companies more regulated and the industry safer for users. This, in turn, will attract more clients to such firms and make cryptocurrencies more popular.
Recall that AMLD5 was adopted in the European Union in January 2020, and already in the middle of the year, Irish officials spoke about the application of the new rules. At the same time, the country’s banks often refused to work with cryptocurrency companies.
