Fintech

Under the proposed regulations, Crypto Asset Service Providers, referred to as CASPs , will require authorisation to operate in Europe. The definition of CASP will cover businesses advising and managing crypto assets, exchanges, trading platforms and custodians to name some examples. Overall the effect will be that any business providing crypto asset services to third parties will be subject to the regulations.

Crypto regulations Ireland and the EU - update. The law around cryptocurrency may change again, with a set of compromises to the original MiCA legislation announced by the European Union on the 28th of February 2022.

Awards: Fintech Law firm of the year in Ireland 2022

A Norwich Pharmacal Order is a legal order that is used to compel an innocent third party to disclose information about another party who is involved in some form of malfeasance. Norwich Pharmacal Orders are becoming a common legal tactic to stifle online trolls on social media, as well as trace anonymous individuals online

If you are a VASP in Ireland, you will need to register with the Central Bank for AML/CFT purposes. If you are a firm that is not established in Ireland, or you are not conducting business as a VASP before the 2021 Act was brought in, then you must be registered with the Central Bank before any services commence. As part of the regulation of VASPs with the Central Bank of Ireland, individuals holding pre-approval controlled functions within a VASP must be approved under the latest fitness and probity regime of the Central Bank.

Ireland has slowly but surely established itself as an alluring destination for businesses in the Fintech sector.‍ From a solid regulatory framework to an advanced financial services ecosystem, Ireland’s financial technology sector is booming right now and is home to a surprising number of reputable domestic and international payment institutions. Let's take a closer look at the reasons behind this below.‍

Any investment firm that provides services relating to investment for third party clients or handles investment activities relating to certain financial institutions could fall under the MiFID scope and therefore require authorisation from the Central Bank of Ireland.

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

The Central Bank of Ireland is the authority responsible for the regulation and supervision across all financial sectors in Ireland. The relevant legislation is the European Communities (Electronic Money) Regulations 2011 which transposed the E-Money Directive into Irish law. At Cosgrove Gaynard, our expert team assist and guide our clients through this complex application process to obtain an e-money licence in Ireland. If you are considering Ireland as a destination to establish an e-money institution, please contact us for further information and to discuss further.

The Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 was enacted on the 23rd April 2021. This piece of legislation transposed the EUs Fifth Anti-Money Laundering Directive (5AMLD) into Irish law. In terms of virtual asset service providers, more commonly referred to as VASP's, this means that they are now required to comply with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)obligations and must register with the Central Bank.

Non-fungible tokens (NFTs) are really taking off in mainstream markets. An NFT is, essentially, a digital collectible. They can represent things, like real-world assets, or they can be things in themselves, like music or art. Their value comes from the fact that they are digitally unique. They exist on a blockchain and, whilst music as an example can be downloaded by anyone, an NFT is explicitly recorded as having a single owner.

As part of the Digital Finance Package released regarding cryptocurrencies in Europe ,it is proposed to regulate crypto assets and markets in crypto assets (MiCA) and to provide definitions of crypto assets and token subcategories. It will also set out rules for digital asset custody and capital requirements.

A smart contract is a legally binding contract that automatically executes some or all of its obligations via a computer program. In this blog, we look at smart contracts and consider how they fit into Irish law.

The recent rise in GameStop’s value had nothing to do with the company itself. Instead, it came about as a result of a small group of dedicated speculators in a Reddit subforum called “WallStreetBets”. These people consciously planned to buy up GameStop stocks in order to boost the value because hedge funds like Melvin Capital, which had invested a significant amount of capital in financial instruments which only rise in value when GameStop’s value declines

A further regulation called the ePrivacy Regulation is being proposed to come into effect next year to further protect privacy in regard to electronic communications.

It is really not for the SEC to determine whether tokens are security; this is to be determined by legislation or for the courts to determine. To date no court has determined whether or not tokens are deemed to be securities. That said it is clear that the SEC has interpreted the matter and are finding tokens to be securities. There is a case currently ongoing in New York which may however become the first court in the world to rule on whether or not tokens are deemed to be securities.

Initial Coin Offerings (ICO's) are not just for technology companies . They are often the beginning of a digital revolution for existing Companies which are already established In their field whether it be healthcare, insurance, property or another industry. Despite some bad press, the tightening of regulation in jurisdictions such as in the US, and indeed Facebook and Twitter banning advertisements , money has been pouring into the ICO market with $3 billion raised through ICOs in the first two months of this year. This is half the value of all funds raised throughout 2017, according to Coindesk data.

In a recent case in the Supreme Court of Israel, the Court held it was unlawful for Leumi Bank (the “Bank”) to restrict the banking activity of a company engaged in cryptocurrency activities. This precedent should signal a warning to other banks thinking of stifling the growth in cryptocurrencies through anticompetitive actions

As cryptocurrencies and their use become more widespread companies are continually developing innovative ways in which to use the underlying blockchain technology. In order to provide funding for these projects companies are offering their own specific crypto tokens and coins to the general public through initial coin offerings or “ICOs”. Due to the popularity the cryptocurrencies generally ICOs are quickly becoming a very lucrative fundraising mechanism. The major advantage to the company running the ICO is they do not have to give up equity in the company in return for capital. At Cosgrove Gaynard we are seeing more and more international clients enquire about ICOs and we are proud to be the preferred legal partner to some every exciting ICOs originating in Ireland in 2018.

As Ireland re-images itself in the post modern world of tax transparency, it will hopefully be at the forefront in proviing a business friendly regulatory environment for ICO's and cryptocurrencies.

Cosgrove Gaynard Solicitors are delighted to announce that we are the first Irish Law Firm to accept Bitcoin payment .