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. 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.

Virtual asset service provider in Ireland (VASPs) operating is now subject to Ireland’s AML/CFT framework and must register with the Central Bank of Ireland.

A VASP in Ireland carrying on business in Ireland is now a “designated person” for the purposes of the Irish anti-money laundering (AML)/countering the financing of terrorism (CFT) framework, meaning that it is subject to AML/CFT obligations generally, and will need to register with the Central Bank of Ireland (CBI). These requirements came into effect on 23 April 2021.

The 2021 Act provides a specific registration regime for Virtual Asset Service Providers (VASPs). For the purposes of the legislation, VASPs are firms that provide any of the following services relating to virtual assets:

1. exchange between virtual assets and fiat currencies;
2. exchange between one or more forms of virtual assets;
3. transfer of virtual assets, that is to say, to conduct a transaction on behalf of another person that moves a virtual asset from one virtual asset address or account to another;
4. custodian wallet provider; and
5. participation in, and provision of, financial services related to an issuer’s offer or sale of a virtual asset or both.

All companies providing VASP services , they must register with the Central Bank under the Central Bank’s VASP registration regime.

The European Union’s Fifth Anti-Money Laundering Directive ('5AMLD') extended Anti-Money Laundering and Countering the Financing of Terrorism ('AML/CFT') obligations to entities that provide certain services relating to virtual assets.

Ireland transposed 5AMLD into Irish law by way of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 (‘2021 Act’) and the provisions of the 2021 Act that relate to VASPs commenced on 23 April 2021.

The 2021 Act extends the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021 (‘CJA 2010 to 2021’) to VASPs.

For the purposes of the legislation, VASPs are firms that provide any of the following services relating to virtual assets:

1. exchange between virtual assets and fiat currencies;
2. exchange between one or more forms of virtual assets;
3. transfer of virtual assets, that is to say, to conduct a transaction on behalf of another person that moves a virtual asset from one virtual asset address or account to another;
4. custodian wallet provider; and
5. participation in, and provision of, financial services related to an issuer’s offer or sale of a virtual asset or both.

VASPs are “designated persons” for the purposes of the CJA 2010 to 2021 and are required to comply with the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) obligations contained under Part 4 of the CJA 2010 to 2021. VASPs will also be subject to the following requirements:

1. Registration with the Central Bank for AML/CFT purposes
All VASPs established in Ireland are required to register with the Central Bank for AML/CFT purposes only.
Firms not established in Ireland and/or not carrying on business as a VASP immediately prior to the 2021 Act coming into force must be registered with the Central Bank prior to the commencement of any services relating to virtual assets from Ireland.
VASPs established in Ireland and carrying on business as a VASP immediately prior to the 2021 Act coming into force, have 3 months to apply to the Central Bank for registration.
If a firm that is currently authorised by the Central Bank for prudential and/or conduct of business services is or plans to also carry on business as a VASP, this firm is obliged to register with the Central Bank as a VASP.

In order for the Central Bank to approve a VASP's an application for AML/CFT registration, the Central Bank must be satisfied that:
- the firm’s AML/CFT policies and procedures are effective in combatting the money laundering and terrorist financing (ML/TF)
risks associated with its business model; and
- the firm’s management and beneficial owners are fit and proper.

Please note that it is a criminal offence to carry on the business of a VASP in the absence of registration.

2. On-going AML/CFT Obligations
VASPs will be “designated persons” for the purposes of the CJA 2010 to 2021 and are required to comply with the AML/CFT obligations contained under Part 4 of the CJA 2010 to 2021 which include:

- carrying out an ML/TF risk assessment of their business;
- undertaking customer due diligence (CDD) of their customers;
- carrying out ongoing monitoring of customers and customer transactions;
- filing Suspicious Transaction Reports (STRs) with Financial Intelligence Unit (FIU) Ireland and the Revenue Commissioner in
instances where money laundering or terrorist financing is known or suspected;
- maintaining and implementing AML/CFT policies, procedures and controls;
- retaining appropriate records; and
- providing AML/CFT training to all staff on an ongoing basis.

As the competent authority in Ireland for the AML/CFT supervision of VASPs, the Central Bank is responsible for monitoring firms’ continued compliance with their AML/CFT obligations.

The Central Bank’s AML/CFT supervisory approach to VASPs replicates our existing approach to the AML/CFT supervision of credit and financial institutions under the CJA 2010 to 2021.

The Central Bank implements a graduated approach to AML/CFT supervision. This means that higher intensity and intrusive supervisory measures (e.g. onsite inspections and review meetings) are used to monitor firms that present a higher risk of ML/TF. Other less intensive supervisory measures such as AML/CFT Risk Evaluation Questionnaires and outreach activities (e.g. presentations and seminars) are also used as part of the Central Bank's AML/CFT supervisory programme.

The frequency and intensity of the AML/CFT supervisory engagement model for an individual firm is dependent on its ML/TF risk rating. The Central Bank’s Fitness and Probity Regime was introduced by the Central Bank under the Central Bank Reform Act 2010 ('the 2010 Act').

The Fitness and Probity Regime applies to persons in senior positions (referred to in the legislation as Controlled Functions (CFs) and Pre-Approval Controlled Functions (PCFs) within regulated financial service providers (RFSPs).

A person performing a CF must have a level of fitness and probity appropriate to the performance of that particular function.

PCFs are a subset of CFs and the prior approval of the Central Bank is required before an individual can be appointed to a PCF role.

A firm must not permit a person to perform a CF unless:
- the firm is satisfied on reasonable grounds that the person complies with the Central Bank’s fitness and probity standards; and
- the person has agreed to abide by the Central Bank’s fitness and probity standards.

A firm must not appoint an individual to perform a PCF role until the Central Bank has approved the appointment in writing.

In addition to the Central Bank’s Fitness and Probity Regime for CFs and PCFs, the CJA 2010 to 2021 also places an obligation on the beneficial owners of VASPs to be fit and proper. We assist in the full registration process with Central Bank of

If you are looking to obtain a Crypto Asset Services Provider (VASP) license in Ireland, LSC & Partners can offer you its legal, technical and business expertise and consulting support.

Our dedicated Financial Services Regulatory Team works closely with clients who are subject to AML / CFT requirements across a number of sectors. We have also advised a number of clients engaged in providing crypto services in Ireland.
We have vast experience in dealing with AML / CFT issues across the spectrum from establishing an AML / CFT framework and preparing policies and procedures; providing annual training; advising on suspicious transaction report filings; advising on governance and outsourcing arrangements related to AML / CFT and guiding clients through themed inspections and supervisory / enforcement engagement on AML / CFT. Step 1
Application preparation, communication with the regulator, business services

Filling out an application form
Communication with regulatory authority during the application phase
Assistance in the development of AML, CFT documents
Assistance in the opening of safeguarding accounts
Company formation, staffing services

Step 2
Preparation of legal, financial and IT documents
Legal documents – AML, KYC, IT/Security policies, etc.
Financial documentation – 3-years financial forecast, P&L statement, the flow of funds
Company operational documentation – internal policies, risk operation policies, internal audit, etc.
IT documentation

Required Documents and Information
For Application Purposes

Documents and information required for application purposes:
(a) VASP’s AML and CFT policies and procedures;
(b) VASP’s money laundering and terror financing risk assessment;
(c) details of all direct and indirect ownership and management in the VASP;
(d) individual questionnaires to assess the fitness and probity of all individuals who are proposed to hold preapproved control functions in the VASP;
(e) business plan setting out the VASP’s proposed activities, transaction flows, projections and any outsourcing arrangements envisaged;
(f) VASP’s proposed organisational structure, AML and CFT reporting lines and staffing arrangements; and
(g) VASP’s AML and CTF training plan.

All you need to get your crypto registration fast and successful.

Should you need more information about registering your Crypto Assets (VASP) Company in Ireland, we welcome you to get in touch with one of our Financial Services Development Team.