Ireland

**Report on the Current Status of Retail Cryptocurrency Trading in Ireland**

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

**Status:** Allowed-Regulated

**Narrative Explanation:**

Retail cryptocurrency trading, encompassing the buying, selling, and holding of cryptocurrencies by individual citizens and residents, is legally permitted in Ireland. However, this activity is subject to a developing and increasingly comprehensive regulatory framework, primarily driven by European Union directives and regulations, and enforced by the Central Bank of Ireland (CBI).

Historically, Ireland's approach to crypto-assets was characterized by a lack of specific, overarching regulation, with existing financial laws applying on a case-by-case basis if a crypto-asset was deemed a "transferable security". The Central Bank of Ireland did not, and still does not, consider cryptocurrencies like Bitcoin as legal tender. However, the landscape has significantly evolved.

A key development was the transposition of the EU's Fifth Anti-Money Laundering Directive (5AMLD) into Irish law via the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021. This Act brought Virtual Asset Service Providers (VASPs) – entities that provide services like exchanges between virtual assets and fiat currencies, or custodian wallet services – under the scope of Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) obligations. Consequently, VASPs operating in Ireland are required to register with the Central Bank of Ireland for AML/CFT supervision purposes. This registration mandates VASPs to conduct customer due diligence (Know Your Customer - KYC), monitor transactions, and report suspicious activities.

The most significant regulatory development is the EU's Markets in Crypto-Assets Regulation (MiCA), which came into full effect for Crypto-Asset Service Providers (CASPs) on December 30, 2024. MiCA establishes a pan-EU regulatory framework for crypto-assets, aiming to enhance transparency, investor protection, and financial stability. Under MiCA, CASPs require authorization from a national competent authority to provide services in the EU. In Ireland, the Central Bank of Ireland is the designated competent authority for authorizing and supervising CASPs.

Ireland has opted for a 12-month transitional period for existing VASPs, meaning they must be authorized as CASPs by December 29, 2025, to continue operating. This CASP authorization is more comprehensive than the previous VASP registration, which was solely for AML/CFT purposes. The MiCA regime imposes requirements related to transparency, disclosure, consumer protection, and measures to prevent market abuse. As of June 2025, some exchanges, like Kraken, have already secured MiCA licenses from the Central Bank of Ireland.

The Central Bank of Ireland has issued numerous warnings to consumers regarding the risks associated with investing in cryptocurrencies, highlighting their volatility, the potential for loss of capital, and the risk of scams. These warnings emphasize that crypto-assets are largely unregulated for consumer protection purposes, even though service providers are now subject to AML/CFT and MiCA regulations.

In terms of taxation, the Irish Revenue Commissioners have clarified that there are no specific tax rules for crypto. Instead, existing tax principles apply. Profits from selling or exchanging crypto-assets are subject to Capital Gains Tax (CGT) at a rate of 33%, after the annual personal exemption. Crypto earned through activities like mining, staking, or as payment for services is subject to Income Tax at the individual's marginal rate. Capital Acquisitions Tax (CAT) applies to gifts or inheritances of crypto.

Therefore, while individuals in Ireland can legally engage with cryptocurrencies, the environment is now firmly "Allowed-Regulated" due to the implementation of AML/CFT requirements for VASPs and the overarching MiCA framework for CASPs, alongside established tax treatments.

**Specific, Relevant Text Excerpts and URL Links:**

*   **Central Bank of Ireland on VASP Registration (AML/CFT):** "All VASPs established in Ireland are required to register with the Central Bank for AML/CFT purposes only... 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."
    *   *Source:* Central Bank of Ireland, "Virtual Asset Service Providers ('VASPs')"
    *   *URL:* https://www.centralbank.ie/regulation/anti-money-laundering-and-countering-the-financing-of-terrorism/virtual-asset-service-providers

*   **Overview of MiCA Implementation in Ireland:** "Regulation (EU) 2023/1114 on Markets in Crypto-Assets (“MiCA”) was published in the Official Journal of the European Union in June 2023. It became applicable to issuers of asset referenced tokens and electronic money tokens in June 2024 and came fully into force for providers of crypto asset services on 30 December 2024. MiCA brings crypto assets under a pan-EU regulatory framework that seeks to ensure increased transparency, investor protection and financial stability... Under MiCA, CASPs require authorisation from a competent authority before providing crypto asset services in the EU. In Ireland, this means that those wishing to provide crypto-asset services are required to apply to the Central Bank of Ireland (the “CBI”) for authorisation as a CASP."
    *   *Source:* Vertex AI Search result citing a legal or financial analysis firm (specific firm name not provided in snippet, but content aligns with official MiCA rollout).
    *   *URL:* (A generic link to the search result is provided by the tool, the specific underlying source URL would be from a legal/financial services firm analyzing MiCA in Ireland, e.g., McCann FitzGerald LLP as indicated by the search result title "Ireland as a Location for Crypto Asset Service Providers 2025") https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHaqtaos2BxKcNrLcu9ifdfqVJ-mtdsPGOo98ZxyajRnq6Kx5Zu2feqP4p3BLDRgNEpC5a2imXn5VlWpF5VCLzpQ8T9DJmQR_vBg1LK94TXiLPly8-xgb6yn_1vXzUTsYAw_Oy01gTTVA47gTWh9mNz2TQhlFR_Xs41rfyi0fZ8q0cBtVDScJHNrEboHJ3Ua0ABR95W6l9Z9vcjtuoYgpIRm6wCmFyOUdpqBbXdD6FbiWyM-MAN7nC0BHnWdwDqU_cF

*   **Irish Government on MiCA Implementation:** "The Minister for Finance has signed the Statutory Instrument No 607 of 2024, European Union (Markets in Crypto-Assets) Regulations 2024 - 2024/01986. This Statutory Instrument: designates the Central Bank of Ireland (CBI) as the National Competent Authority."
    *   *Source:* Gov.ie - Department of Finance
    *   *URL:* https://www.gov.ie/en/press-release/e9c8e-minister-for-finance-gives-effect-to-eu-regulation-on-markets-in-crypto-assets/

*   **Citizens Information on Legality and Regulation:** "Crypto is not banned in Ireland so it is legal. There are not very many laws about crypto, so it is said to be largely unregulated. Some new laws are being introduced by the European Union. These will require the providers of crypto services to be authorised to operate in the EU... Under MiCAR, Crypto-Asset Service Providers in the EU will have to be authorised by a central bank. The law comes into effect on 30 December 2024 but, for existing providers in Ireland, there will be a transitional (lead-in) period of 12 months."
    *   *Source:* Citizens Information Board
    *   *URL:* https://www.citizensinformation.ie/en/money-and-tax/personal-finance/savings-and-investments/crypto/

*   **Irish Revenue on Taxation of Crypto:** "There are no specific tax rules for crypto. If you earn crypto, you have to pay income tax on it in the same way as other income... If you make a profit from selling a crypto-asset, you have to pay Capital Gains Tax in the same way as for gains from any other asset such as property." (This is also corroborated by multiple tax advisory firm sources)
    *   *Source:* Citizens Information Board (summarizing Revenue's position)
    *   *URL:* https://www.citizensinformation.ie/en/money-and-tax/personal-finance/savings-and-investments/crypto/
    *   *Corroborating Source Example (Koinly):* "Yes - you pay tax on crypto in Ireland. The Revenue Commissioners, or just Revenue, is clear that crypto in Ireland is subject to Income Tax and Capital Gains Tax."
    *   *URL:* https://koinly.io/guides/crypto-tax-ireland/

*   **Central Bank of Ireland on MiCA Transitional Period:** "MiCAR provides for a transitional period for CASPs that provided their services in accordance with applicable national law prior to 30 December 2024. Article 143(3) MiCAR provides for a transitional period of up to 18 months, but allows Member States the discretion to reduce its duration where they consider the national regulatory framework is less strict than MiCAR. A transitional period of 12 months ending on 29 December 2025 has been set in accordance to Regulation 20 of S.I. No. 607/2024 - European Union (Markets in Crypto-Assets) Regulations 2024."
    *   *Source:* Central Bank of Ireland, "Markets in Crypto Assets Regulation (MiCAR)"
    *   *URL:* https://www.centralbank.ie/regulation/financial-services-legislation/markets-in-crypto-assets-regulation-micar