Fintech 2026

IRELAND Law and Practice Contributed by: Niall Esler, Shane Martin, Laura Whitson and Coleen Wegmann, Walkers

Bank is also looking at tokenisation structures in the investment funds space, and published a discussion paper on tokenisation in March 2026. 10.3 Classification of Blockchain Assets The Central Bank has confirmed in a consumer warn - ing that virtual currencies are not legal tender. Crypto-Assets in Scope of MiCAR MiCAR defines a crypto-asset as “a digital repre - sentation of a value or of a right that is able to be transferred and stored electronically using distributed ledger technology or similar technology”. The regula - tion applies only to crypto-assets that are not covered by existing EU legislation, and categorises in-scope crypto-assets into ARTs, EMTs and other crypto- assets, including utility tokens. Significance of MiFID II Definition of Transferable Securities to Regulatory Approach The MiFID Regulations apply to financial instruments, including those issued by means of DLT. One area of focus has been whether a particular blockchain asset qualifies to be considered as a MiFID II financial instrument, typically focused on the defini - tion of a transferable security. Certain types of crypto-assets could instead qualify as other MiFID II financial instruments, such as units in collective investment undertakings, money-market instruments or derivatives; a case-by-case analysis is required. Depending on classification, a range of other regimes could be triggered – eg, a transferable security falls within the regulatory scope of, inter alia, MiFID II, the Prospectus Regulation and MAR. In March 2025, ESMA published its Guidelines on the conditions and criteria for the qualification of crypto- assets as financial instruments, which provide further

If a person performs a “payment service” as listed in PSD2 with a blockchain asset that qualifies as “elec - tronic money” under EMD2, such activity would fall within the scope of PSD2 by virtue of constituting “funds”. 10.4 Regulation of “Issuers” of Blockchain Assets Assuming the blockchain assets are not governed by any existing EU legislation, the issuance of crypto- assets is governed by MiCAR. The issuance of a crypto-asset other than ARTs and EMTs is itself not a regulated activity under MiCAR if it does not consti - tute an offer to the public, seeking admission to trad - ing, or a crypto-asset service. Certain market abuse requirements under MiCAR are nonetheless applica - ble to issuers. The regulatory classification of tokenised real-world assets (RWAs) requires a case-by-case analysis. Based on the tokenisation structure used and the specific rights and obligations attached to the token, a tokenised RWA may, for example, constitute a finan - cial instrument under MiFID, or an ART under MiCAR. See 10.13 Stablecoins regarding the regulatory frame - work under MiCAR for issuers of ARTs and EMTs. MiCAR requires offerors and persons seeking admis - sion to trading of crypto-assets other than ARTs and EMTs to notify a white paper to an EU NCA and abide by certain disclosure and conduct requirements. Exemptions are available to certain offers to the pub - lic, which need to be assessed on a case-by-case basis. 10.5 Regulation of Blockchain Asset Trading Platforms Where blockchain assets constitute MiFID II finan - cial instruments such as transferable securities, the operation of a trading platform will be in the scope of existing regulatory regimes. The operation of a trad - ing platform may involve the issuance of electronic money or the provision of payment services, in order to facilitate wallet and payment features. MiCAR imposes requirements on CASPs operating a trading platform for crypto-assets or engaging in exchange

clarity on the approach to be taken. Crypto-Assets and Payment Services

Only electronic money institutions authorised under the Electronic Money Directive and credit institutions can issue EMTs – ie, crypto-assets that purport to maintain a stable value by referencing the value of one official currency.

427 CHAMBERS.COM