Ireland Pushes Forward with MiCA to Drive Financial Innovation and Inclusion

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Ireland Pushes Forward with MiCA to Drive Financial Innovation and Inclusion

Ireland is one of the 27 European Union (EU) member states looking to implement the new Markets in Crypto-Assets Regulation (MiCA) rules in their own unique ways. That is since the region introduced MiCA as a detailed regulatory framework for the crypto sector in June 2023.

At the Association for Financial Markets in Europe’s (AFME) annual European Compliance and Legal Conference on Monday, Derville Rowland, deputy governor of the Central Bank of Ireland, once again retorted the country’s commitment to MiCA and its provisions, claiming it is the only way to innovate safely.

Rowland noted that blockchain technology is arguably one of the most notable innovations in the recent history of financial services. She noted that there is undeniable evidence of the positive impact of this technology in various sectors. That is, through investment product tokenization, enhanced post-trade infrastructure, and greater interoperability.

According to her, however, MiCA remains Europe’s best bet to adopt and adapt to these new technologies. The region can use the framework to unlock that future where financial inclusivity and democratized finance are not only a figment of the imagination but a practical experience.

For clarity, MiCA brings a unified regulatory framework that governs the issuance of e-money tokens, asset-referenced tokens, and crypto-asset service providers. While this is a first of its kind, the approach is designed to ensure that all players in the crypto space are subject to the same guidelines. So, whether such firms are offering tokens to the public or merely managing crypto-asset services, their operations all fall under the same regulations.

Meanwhile, Ireland has been keen on embracing these new rules. However, the country intends to do so in a way that encourages safe and responsible innovation. This, according to Rowland, has been a major point of focus for the Central Bank of Ireland.

Rowland mentioned two key priorities when it comes to implementing MiCA in Ireland. First, she says the country would be working closely with other EU member states and the European Supervisory Authorities (ESAs). The goal of this is to make sure that there is consistency in how the regulations are being applied across the continent.

Secondly, Ireland is focused on improving the authorization process for crypto companies. The country will achieve this by increasing engagement with the industry.

As Rowland explained, better communication with the sector would mean that firms understand the central bank’s expectations more clearly. This ultimately results in more efficient compliance and risk management.

It might be worth mentioning what Europe is aiming to do with its MiCA regulation. There is an ongoing effort in the continent to close the gap in innovation that exists between Europe and global tech leaders like China and the United States. Therefore, Ireland, as well as other EU members, are racing against time to align with these broader efforts by taking necessary steps to implement MiCA ahead of the 2026 deadline.

Spain, for example, announced last October that it would begin to enforce the new rules by December 2025. Latvia, on the other hand, has opened pre-licensing consultations for crypto companies.next

Ireland Pushes Forward with MiCA to Drive Financial Innovation and Inclusion