Central Bank of Ireland lays out its expectations of firms seeking crypto licensing in Ireland

If you are looking to get authorised under Markets in Crypto Asset Regulation (MiCAR) in Ireland, the Central Bank of Ireland has confirmed (or perhaps reconfirmed in some people's minds) that regulator intends to open its MiCAR authorisation gateway in early QUARTER 3 2024. 

While VASPs operating under the VASP regime prior to 30 December 2024, under MiCAR, will be permitted, post 30 December 2024, to avail of a transitional period enabling them to continue to operate for up to 12 months or until their CASP authorisation is granted or refused, whichever is sooner the CBI says that in respect of firms not yet registered as VASPs its experience is that period of at least ten months is required to conclude the assessment of a VASP application. The CBI says such firms should focus their efforts on preparing for a CASP application (under MiCAR) rather than seeking a VASP registration at this time. 

For those VASPs that have already applied for a registration but have not reached the end point of the process, the CBI will continue to assess these applications and will engage bilaterally with these firms on the progress of their applications.

Following Ramp Swaps (Ireland) Limited's registration as a VASP, the latest such registration in Ireland, there are now 13 registered virtual asset service providers in Ireland and potentially a few more to come. Get in touch with CompliReg and see MiCA Ready if you are looking to get a MiCAR authorisation in Ireland or elsewhere in Europe.

​Firms looking to get authorised in Ireland as a CASP or registered in near future as a VASP should note the following extracts from a speech today by Gerry Cross, Director for Financial Regulation, Policy and Risk at Blockchain Ireland's excellent event this week (see link at end of article) 

•  authorisation is a two way process. A successful process depends crucially on the preparation and approach of the applicant.

 

• key aspects of a successful application, include:

 

1. TRANSPARENCY: (a) firms should act in a fully transparent and open manner with respect to their proposed application; (b) if an applicant is applying in multiple EU jurisdictions for a MiCAR activity the CBI says the firm must disclose this in its application;
2. PREPARATION: (a) firms should prepare well and be appropriately resourced to engage with the CBI 'in a comprehensive and timely manner throughout the assessment process'; (b) preparation also means that firms understand the local regulatory environment.
3. SUPERVISIBILITY: authorised firms should operate with strong local autonomy and be accountable for all aspects of the local entity. Where we identify obstacles to firm’s meeting this expectation, they will not be authorised.
4. CONSUMER FOCUS: firms should ensure that securing customer interests is at the core of their business. This is particularly the case for retail facing business models. [and remember, a 'consumer' are not just people; it covers certain legal persons too].

Source: Technological innovation and financial regulation – a maturing relationship - Remarks by Gerry Cross, Director for Financial Regulation, Policy and Risk, Wednesday 29th May 2024

​Linkedin Post:  https://www.linkedin.com/posts/peteroakes_micar-virtualasset-activity-7201513163152834560-N6m7