The Central Bank of Ireland is at the forefront of efforts to make finance more accessible to everyone. The bank is leading the charge to improve financial inclusivity by supporting the EU’s new MiCA regulations.
The European Union has taken an early step in introducing comprehensive regulations for the cryptocurrency sector, aimed at both developers and investors. The EU’s Markets in Crypto-Assets Regulation (MiCA) became law in June 2023, marking a significant move toward regulating the crypto space.
MiCA’s Impact Across Member States
Since MiCA came into effect, the EU’s 27 member countries have been working to adopt the new rules in their own way. At the recent European Compliance and Legal Conference, hosted by the Association for Financial Markets in Europe (AFME), Derville Rowland, the deputy governor of the Central Bank of Ireland, emphasised Ireland’s commitment to safe innovation under the MiCA framework.
Rowland highlighted blockchain as one of the biggest innovations in financial services in recent years. According to her, blockchain is already making an impact across different sectors, such as tokenizing investment products and improving infrastructure. She stressed that MiCA is key for Europe to lead in embracing these technologies, helping financial institutions promote inclusivity and democratise finance.
MiCA will introduce a common regulatory framework for the crypto sector across Europe. It includes rules for e-money token issuers, asset-referenced tokens, and crypto service providers. These regulations will also cover public offers of crypto-assets, ensuring a safer and more transparent environment for investors.
Ireland’s Priorities for MiCA Implementation
Rowland outlined two key goals for Ireland in implementing MiCA. First, she stressed the need for collaboration with other EU countries and European Supervisory Authorities (ESAs) to maintain consistent regulation across the region.
Secondly, she pointed out the importance of engaging with the industry to clarify the Central Bank’s expectations for those complying with the new rules. This approach has already led to better risk assessments and improved supervision within Ireland’s financial sector.
By focusing on innovation and clear regulation, Ireland aims to stay at the forefront of the evolving crypto market under MiCA.
