IRELAND Law and Practice Contributed by: Niall Esler, Shane Martin, James O’Doherty and Laura Whitson, Walkers
1. Fintech Market 1.1 Evolution of the Fintech Market Ireland is home to well-developed and globally recognised technology and financial services sectors, and is one of the leading European juris - dictions for fintech activity. The Central Bank of Ireland (Central Bank) has recognised that the fintech sector is of increasing importance to both the Irish and EU financial services landscape, and that the industry has seen significant growth in recent years. Key Trends Over the Past 12 Months Fintech activity continues to be particularly prev - alent in the payments sector, although it is not limited to this area. The 2023 update published by the Central Bank’s Innovation Hub notes that, by the end of 2023, it had held 389 engagements across a number of sectors, including payments, regtech, blockchain, crypto and insurtech. Four new e-money or payment institutions were authorised by the Central Bank in 2024. Signifi - cant growth has appeared in the virtual asset service provider (VASP) sector, with 22 VASPs registered with the Central Bank since the regime came into effect in April 2021. Regulatory Developments Fintech developments in Ireland are expected to continue to focus on the payments sector, regtech, AI and blockchain over the next 12 months, among other areas. The Markets in Crypto-Assets Regulation (MiCAR) came into application at the end of 2024 and is expected to generate market activity with existing Irish- registered VASPs and new entrants alike choos - ing Ireland as their EU base and seeking authori - sation as a crypto-asset service provider (CASP) under MiCAR in Ireland.
Crypto-assets On 30 December 2024, MiCAR became appli - cable to CASPs as well as offerors and persons seeking admission to trading of crypto-assets in the EU. Stablecoin issuers have been subject to MiCAR since 30 June 2024. Entities providing certain crypto-asset services within the EU are required to be authorised as CASPs. CASPs authorised under MiCAR will be subject to a range of obligations, including the prudential and conduct of business require - ments under MiCAR as well as other require - ments, such as in relation to anti-money laun - dering. VASPs that were registered with the Central Bank and operating in Ireland as a VASP by 30 December 2024 may avail of a transitional period of 12 months or until they are granted a CASP authorisation, whichever is sooner. These enti - ties can continue to provide services in Ireland during the transitional period. Offerors and persons seeking admission to trad - ing of a crypto-asset in the EU are now subject to obligations under MiCAR. A person cannot make an offer to the public or seek admission to trading of an asset-referenced token (ART) or an electronic money token (EMT) unless that person is the issuer and: • in the case of an ART, that issuer is estab - lished in the EU and authorised under MiCAR, or alternatively is authorised as a credit insti - tution; or • in the case of an EMT, the issuer is authorised as a credit institution or an e-money institu - tion, unless an exemption applies.
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