Will The European Union Rules Drive Crypto Firms Out Of Ireland?

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Last Updated on 29 April 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Ireland has a strange history when it comes to tech firms and the European Union. The Celtic Tiger knows that it is thriving because of access to the European Union’s free market, but at the same time welcomes US tech companies who wish to do business in Europe by offering them a headquarters with very low business tax regulations.

When Apple got caught by the EC not having complied with tax regulations in Ireland, the local government wasn’t too keen to ask the Cupertino company for their money. In essence, they preferred to keep Apple as a company having offices in Ireland rather than having Ireland without Apple but with more tax money in its coffers.

As from 23 April, the newest European Anti-Money Laundering Directive (known as 5AMLD) went into effect in Ireland, giving crypto companies over there 3 months to register with the central bank. Furthermore, the regulation will also require registration of foreign cryptocurrency companies that provide services to Irish citizens.

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We need innovation

Ireland is only the first domino to fall thought. Onlookers believe that by June 3, all virtual asset service providers (VASP) serving European countries will need to comply.

Jed Grant, CEO of crypto company KYC3, fears that Irish crypto companies will be forced to shut down or relocate. He declared:

New rules will force companies to leave and go to jurisdictions where there’s not so much control, as we’ve seen in the Netherlands in France, and there companies shall innovate and build non-custodial solutions where they don’t actually hold any of the crypto.

Problem is that given the newness of the crypto market, these rules could stifle innovation. According to Mr Grant:

We also need innovation, we need privacy, and we need normal citizens to be respected much more.

Will be interesting to see if any crypto company in Ireland decides to relocate in the coming months.