Crypto firms face enhanced supervision under MiCAR in Ireland
Gerry Cross, Director of Capital Markets & Funds at the Central Bank of Ireland, detailed the transition for Crypto-Asset Service Providers (CASPs) from authorisation to ongoing supervision under MiCAR. He emphasized the central bank's commitment to open engagement and a robust regulatory framework for the crypto sector.
Innovation meets robust regulation
The Central Bank of Ireland (CBI) actively supports the EU's digital finance ambitions, playing a leading role in implementing the Markets in Crypto Assets Regulation (MiCAR) and the Digital Operational Resilience Act (DORA).
MiCAR introduces a comprehensive European regulatory framework for crypto assets, aiming for well-governed, value-oriented, and customer-positive growth.
The CBI observes the interplay of AI and Blockchain, noting potential for enhanced fraud detection.
Tokenisation is also seen as transformative across payments, trading, investment funds, and asset management.
A recent CBI Discussion Paper on DLT & tokenisation aims to foster dialogue.
International cooperation with bodies like FSB, IOSCO, ESMA, and EBA is crucial due to the borderless nature of crypto technology, aligning with objectives of market integrity, consumer protection, and financial stability.
Lessons from the authorisation journey
The CBI successfully authorised a significant cohort of CASPs in 2025, employing a risk-based, proportionate, and outcomes-focused approach to MiCAR implementation.
This gatekeeping process prioritized clarity and predictability for applicants, focusing on substantive judgments.
Firms were challenged to keep consumer interests central, alongside robust governance, operational resilience, client asset safekeeping, and anti-money laundering.
The CBI expressed skepticism about business models driven by heavy marketing of unbacked crypto to retail customers for speculative purposes, leading to higher expectations for firms with elevated conduct and investor protection risks.
Operational resilience, strong culture, and effective conduct risk management are paramount for the sector's integrity.
A maturing sector under watchful eyes
The CBI's briefing marks a pivotal moment for the crypto sector, signaling a definitive shift from initial authorization to rigorous, ongoing supervision.
This strong emphasis on consumer protection and operational resilience is vital for building trust and stability in a volatile market.
While challenging for firms, this proactive stance is crucial for fostering responsible innovation and safeguarding the financial system.