Jim O'Callaghan (Dublin Bay South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

291. To ask the Minister for Finance if consideration is being given by his Department to restricting or prohibiting the use of cryptocurrencies in Ireland as a means of payment or trading commodity; and if he will make a statement on the matter. [53189/21]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Cryptocurrencies and their exchanges/platforms are not currently regulated and do not currently require an authorisation or licence from the Central Bank of Ireland.

In April 2020 the Central Bank issued its to the European Commission public consultation on the Markets in Crypto-Assets, highlighting the views of the Central Bank on crypto-assets.

Risks associated with certain cryptocurrencies such as so called global stablecoins include risks to financial stability, monetary policy, consumer and investor protection, legal certainty and compliance with AML/CFT requirements and these are a key concern. The issuing of "currency" should firmly remain under the remit of the relevant public authorities (i.e. the European Central Bank).

Innovations that increase the efficiency of financial services to consumers are encouraged; however, innovations that fail to reach the high standards and controls that protect Irish consumers and underpin the integrity of the financial system, or those which put financial stability at risk, should not be allowed to flourish outside a regulatory and legal perimeter.

With these considerations in mind, on 24 September 2020, the European Commission released its . This contains a proposal for a new EU legislative framework for the Markets in Crypto-Assets (MiCA), which aims to regulate a markets in crypto-assets, including asset-referenced tokens, also known as 'stablecoins'.

My Department has been working extensively in these negotiations, with technical advice being provided across the Department and the Central Bank of Ireland. I would like to point out that MiCA will be a regulation, not a Directive, so it will be applicable in Ireland as soon as the regulation comes into force.

At an EU level, while the development of an appropriate regulatory framework continues, it is important to highlight that there is a consensus to adopt a conservative prudential approach towards crypto assets which is line with that set out in the EBA’s January 2019 report.

Finally, I would like refer to my written answer earlier this year Dail Question No. 66 () and to reiterate that the Central Bank has issued to consumers on the risks of buying virtual currencies, a set of warnings that are more relevant than ever following from the marked increase in digital payments and transactions since the start of the COVID pandemic.