There are some countries that are anti-crypto. For example, the United States and China. They aren’t receptive to the benefits crypto brings. Yet, there are some other countries that embrace crypto.
For instance, Malta and the Netherlands. Today, we’ll be talking about how Ireland fits in the latter category. And, how it’s becoming the next crypto hub.
1/ Crypto giants Coinbase, Kraken, and Gemini have recently made Ireland one of their strategic locations.
Why is Ireland quickly becoming a crypto hub 🧵 pic.twitter.com/mXZ72huRf1
— Digital Asset Summit 2024 (@blockworksDAS) October 23, 2023
Indeed, why are top crypto companies set up in Ireland? Turns out, it has much to do with the regulations there. Let’s find out more!
Reason #1 – An Innovation Hub
Back in 2018, the leaders of Ireland created an innovation hub. With this, crypto firms can engage the Central Bank of Ireland with more ease. This improves the communication between all parties.
In turn, crypto firms can comply better with Ireland’s regulations. Hence, it’s easier to set up shop and grow a crypto business in Ireland.
Reason #2 – The Markets in Crypto Assets (MiCA) Regulation
Earlier this year in April, Europe passed a new regulation, MiCA. Europe aims to set the regulatory framework for MiCA only by the end of 2024. So, what does MiCA do for crypto companies and consumers?
MiCA states that crypto-asset service providers (CASPs) will need licenses to operate. However, this will only be for CASPs serving EU clients. With this, CASPs can operate with peace of mind once they get the license.
🚀 Coinbase Expands in Europe! 🌍
Exciting news for the crypto industry! Coinbase has chosen Ireland as its European crypto hub to comply with the upcoming Markets in Crypto-Assets Regulation (MiCA). This strategic move allows Coinbase to serve 450 million people across 27 EU… pic.twitter.com/oapvr0yn1s
— nuco.cloud (@nucocloud) October 23, 2023
But, what will CASPs do while waiting for MiCA to come online?
Reason #3 – The Virtual Assets Service Provider (VASP) Status
In Ireland, CEXs like Coinbase, Kraken, or Gemini can now apply for VASP status. VASPs in Ireland can offer a total of 5 services. This includes exchanging crypto with fiat and other assets. For CEXs like Coinbase, these are the services that they’re best at providing.
With the VASP status, regulations in Ireland are very clear. This is very evident as CEXs are making a beeline towards Ireland. In fact, Gemini obtained its VASP status in July last year. Coinbase has done similarly in December last year.
Indeed, Ireland is looking to be the next crypto hub in the region.
Reason #4 – Ireland’s Political Environment
Aside from regulations, politics play a part in making Ireland the next crypto hub. Firstly, it’s got a stable political environment. That’s a plus point for companies, including crypto ones, to set up there. Secondly, the leadership embraces Fintech and crypto companies. This is shown through Ireland’s clear regulations above.
🇮🇪 With approvals from the Central Bank of Ireland and the UK's #FCA, #Zodia Markets is ready to launch OTC and exchange services in the EU, aligning with the upcoming MiCA crypto regulations.
#OTC #Regulations #EUhttps://t.co/z4KjHfSBoS
— 1ATH.Studio (@1ATHStudio) October 28, 2023
And last, but not least, Ireland has a regulator that’s respected by other countries. With this, its laws and regulations would be considered by other countries seriously. So, a company with a VASP status will be more likely to obtain a MiCA license. Or any other license worldwide, as compared to another company without VASP status.
In a nutshell, the views and actions of a country towards crypto are important. If a crypto company sets up an anti-crypto company, it’s bad news for them. For instance, Binance is now facing legal turmoil with the US Securities and Exchange Commission. For them, it’s disruptive for operations. Moreover, it takes a lot of money and effort to fight such lawsuits too.
In Ireland, the rules and regulations are clear. Crypto companies can set up and operate with peace of mind. Hence, Ireland will likely be the next big crypto hub in the region.
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