IRELAND Trends and Developments Contributed by: Christopher Martin, Derek Hegarty and Nicola Munnelly, KPMG Law
• whilst recognising that certain elements will become clearer in terms of practical imple - mentation, firms should have already laid much of the groundwork for implementation; • the Central Bank is ultimately aiming for “high quality implementation” , and is therefore committed to working with firms from their initial implementation through to a richer more fully achieved compliance over time; • where possible gaps in compliance have been identified, firms will be expected to have identified these and have a clear plan to close those gaps, and key aspects such as inci - dent identification and reporting, are required without delay; • the Central Bank will continue to promote a convergent approach to supervision and implementation with other competent authori - ties across the EU; • the Central Bank will continue to develop and transform its supervisory approach with an integrated supervisory framework for over - sight of specific sectors, as well as cross- sectoral supervision teams, including for DORA; and • the new oversight regime for critical ICT third- party service providers represents a signifi - cant and ground-breaking approach. Accordingly, regulated entities and ICT service providers working with them should have already taken significant steps to comply with DORA. The Central Bank’s approach to implementation and supervision means that firms should expect significant regulatory scrutiny and engagement over the next year to ensure that all firms have place comprehensive risk management, report - ing and operational resilience frameworks. Markets in Crypto-Asset Regulation (MiCAR) MiCAR fully entered into force from 31 Decem - ber 2024, with the requirements relating to sta -
blecoin issuers coming into effect in June 2024. MiCAR aims to provide greater transparency, clarity and investor protection in Ireland and the EU, while also allowing for the provision of cross-border services across the EEA. MiCAR introduces significant new rules for crypto-assets (including asset referenced tokens (ARTs), electronic money tokens (EMTs) and non-ARTs/EMTs), issuers of crypto-assets and crypto-asset service providers (CASPs). Certain types of crypto-assets are, however, exempt (for example unique non-fungible tokens), and these may continue to be issued without the need to comply with MiCAR. For issuers, authorisation as a credit institution or e-money institution is required to issue EMTs, and authorisation as a credit institution or under a new MiCAR issuer authorisation is required to issue ARTs. No authorisation is required to issue non-ARTs/EMTs. Tokens which are offered to the public or traded on a trading platform will also need to produce white papers which, in Ireland, will be notified to the Central Bank. The white paper is similar to a prospectus, setting out key information, prescribed under MiCAR, in relation to the relevant token. Separately, authorisation as a CASP will be required in respect of certain crypto-asset ser - vices including, in respect of crypto-assets cov - ered by MiCAR: • custody and administration; • operation of a trading platform; • exchange of crypto-assets for funds; • exchange of crypto-assets for other crypto- assets; • execution of orders; • placing; • reception and transmission of orders;
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