Cosgrove Gaynard Solicitors

‍ FAQ'S on the recently enacted VASP registration process with the Central Bank

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Further to our recent article on the registration process, we have set out a number of replies to frequently asked questions that are arising from both current and new virtual asset service providers in Ireland.

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1.      Which entities must register under the new legislation?

The recently enacted the Criminal Justice(Money Laundering and Terrorist Financing) (Amendment) Act 2021 extends the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to2021 to Virtual Asset Service Providers. The new registration requirements apply to all entities that intend to provide virtual asset services in or from the Republic of Ireland.  The definition of virtual asset service provider under the legislation is an entity which provides any of the following virtual services:

-       exchange between virtual assets and fiat currencies;

-       exchange between one or more forms of virtual assets;

-       transfer of virtual assets, that is to say, to conduct a transaction on behalf of another person that moves a virtual asset from one virtual asset address or account to another;

-       custodian wallet provider; and

-       participation in, and provision of, financial services related to an issuer’s offer or sale of a virtual asset or both.

2.      What is the timeframe set out for registration?

From 23 April 2021 all new market entrants for virtual asset service providers will be required to register with the Central Bank before commencement of trade.

Existing VASP providers in Ireland have a grace period of three months.

3.      Can I do business after 23 April 2021 if we are not registered?

 A new market entrant (i.e.an entity not already trading in Ireland) is in breach of the law if it commences trade without first registering. Such entities may be subject to penalties and other enforcement proceedings from the Central Bank including criminal sanctions.

4.      Can a VASP currently providing virtual asset services in Ireland continue to do so at this time?

 Yes, there is a grace period for existing VASP providers in Ireland of three months.

5.      Will virtual asset service providers be required to be regulated under any other law in Ireland?

As some VASPs may engage in multiple business areas, some other licensing, authorisation or registration may be required and we can advise further in relation to same depending on your business model.

Should you require further information on the steps involved in the registration process, please see our further article or contact us to discuss how we can assist.  

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