MiCA Licence in Ireland

Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) has become a key element of the European digital finance strategy and an essential tool for harmonising the regulation of the cryptocurrency sector. Ireland, following the pan-European course, has assigned the Central Bank of Ireland the functions of the national competent authority responsible for authorising and supervising market participants. From 30 June 2024, its provisions began to apply to issuers of asset-backed tokens (ART) and electronic money tokens (EMT), and from 30 December 2024, to all crypto-asset service providers (CASP).

The regulation introduces fundamental changes to the procedure for issuing and circulating stablecoins. ARTs are defined as tokens that maintain their value by being pegged to one or more assets, while EMTs are defined as tokens backed by a single official currency. For both categories, it is mandatory to obtain permission from the Central Bank of Ireland, as well as to publish official documents disclosing the parameters of the token, its collateral and risks. In addition, special attention is paid to “significant” ARTs and EMTs, which, due to the scale of their issuance or the nature of their functioning, may pose an increased risk to the financial system. Supervision of these tokens has been transferred to the European Banking Authority (EBA). In cases of non-compliance, such tokens are subject to restriction or exclusion from trading.In addition to ART and EMT, MiCA also applies to other crypto-assets. For their issuance and admission to circulation, notification of the competent authority and preparation of a white paper in the established format are required. The issuer is responsible for the completeness and accuracy of the information. Thus, for the first time at the EU level, a universal regulatory framework has been created for all crypto assets, with the exception of financial instruments regulated by MiFID II, non-fungible tokens in their classic form, central bank digital currencies, and assets issued by government entities.

Particular attention is paid to crypto service providers. MiCA requires mandatory authorisation for all CASPs, including custodial services, cryptocurrency exchanges, exchange platforms, customer order execution operators, token placement intermediaries, as well as advisors and portfolio managers. Companies must undergo a detailed procedure, including preliminary interaction with the Central Bank, preparation of a Key Facts Document disclosing the business model, management structure, internal policies, and AML/KYC measures. Based on this document, the Central Bank assesses the applicant’s readiness to submit a formal application. This is followed by a 40-day period for reviewing the full application, during which the regulator may request additional information, suspending the process for no more than 20 working days. Once the analysis is complete, the applicant receives a decision on whether to grant or refuse the licence. An important aspect is the interaction between MiCA and the Payment Services Directive (PSD2). Some activities involving EMT are considered payment services requiring a separate payment institution licence. This means that some companies will have to obtain dual licences – CASP and PI – or enter into partnerships with existing payment service providers. The European Banking Association has recommended that national authorities take a flexible approach to these situations and minimise the administrative burden on businesses during the transition period.

The regulation also prohibits market abuse. This applies to any transactions with crypto assets, including insider trading, unlawful disclosure of confidential information, and price manipulation. In doing so, MiCA transfers the rules applicable in traditional financial sectors to the crypto market, forming the basis for investor confidence. A transition period until 29 December 2025 has been established for Ireland. Companies registered as VASPs under national law may continue to operate until that date, but are required to apply for a MiCA licence. At the end of the transition period, only organisations that fully comply with the new requirements will be able to operate. The Central Bank of Ireland has repeatedly emphasised in its public statements that it sees its role as creating a regulatory environment that strikes a balance between innovation and consumer protection. The key areas of supervision are transparency of business models, effectiveness of AML/KYC procedures, cyber infrastructure resilience and risk mitigation for investors. Companies planning to operate in Ireland’s crypto sector should bear in mind that the regulator expects them to engage early and prepare for licensing in a timely manner.

Thus, MiCA in Ireland forms a predictable and strict regulatory framework that brings the regulation of the cryptocurrency market closer to that of traditional financial institutions. For businesses, this entails an increase in compliance costs, but at the same time provides an opportunity to enter the single EU market on the basis of licence passporting. For investors, it creates a safer and more transparent environment, which helps to strengthen confidence in digital assets and accelerates the institutionalisation of the crypto market.

MiCA regulations in Ireland

In 2025, Ireland significantly changed its approach to regulating the cryptocurrency sector, moving from a simple registration regime to a full licensing system under the EU Markets in Crypto-assets Regulation (MiCA). This move reflects the country’s desire to ensure a high level of supervision, transparency and trust in digital assets, while enabling companies to operate in the single European market. Since 2021, Ireland has required cryptocurrency companies to register as virtual asset service providers (VASPs). The main requirement at the time was compliance with anti-money laundering (AML) rules, including KYC procedures and reporting of suspicious transactions. However, a new procedure came into force on 30 December 2024: all exchanges, brokers and custodial services working with Irish clients are required to obtain a CASP licence under MiCA. The Central Bank of Ireland (CBI) began accepting preliminary applications in the spring of 2024 to help market participants prepare for the new requirements. At the same time, Ireland reduced the transition period from 18 to 12 months, setting a deadline for obtaining a licence of 29 December 2025.

CASP licence requirements include having equity capital of between €50,000 and €150,000 (depending on the range of services provided), a clear separation of client funds from company funds, the development of incident response plans and a cybersecurity system. In addition, companies must appoint managers based in Ireland who meet the criteria of professional competence and integrity. Separate rules on asset reservation and redemption have been introduced for stablecoin issuers.

Alongside this, the EU Payment Services Directive has been in force since December 2024, requiring cryptocurrency companies in Ireland to provide the details of the sender and recipient for transactions exceeding €1,000. This makes anonymous large transfers impossible and strengthens control over the movement of funds. The tax regime also remains an important part of regulation. The sale or exchange of cryptocurrency is considered a taxable event and is subject to capital gains tax at a rate of 33% on annual profits over €1,270. Income from mining, staking and payment for services in cryptocurrency is classified as ordinary income and is subject to income tax rates of up to 40%, with additional USC and PRSI contributions. In 2025, two levels of regulation will apply simultaneously: companies are required to remain on the VASP register and comply with AML rules until they obtain a CASP licence, as well as prepare for new supervisory standards. The CBI actively publishes guidelines, including rules on key storage, incident reporting, complaint handling and even monitoring the energy consumption of crypto companies.

Dublin has strengthened its status as an international hub for crypto exchanges thanks to its English-speaking environment, access to the EU single market, and the regulator’s proactive stance. Major companies, including Coinbase, Gemini, and Crypto.com, are already registered in Ireland, and local startups are creating tools to ensure MiCA compliance and integration with the euro. At the same time, Irish banks remain cautious about large cryptocurrency flows and often require confirmation of the origin of funds, prompting companies to seek foreign payment partners. The cost of obtaining a CASP licence in Ireland can exceed €200,000, taking into account legal support, auditing and modernisation of IT infrastructure, and the company’s share capital contribution. However, in exchange, companies gain the opportunity to offer their services throughout the EU on a passporting basis without having to obtain separate authorisations in each country. Thus, by 2025, Ireland has transformed its cryptocurrency regulatory regime from a simple AML register to one of the most stringent MiCA licensing systems in Europe. Companies that invest in corporate governance, customer protection and sufficient capital will be able to successfully adapt and use Ireland as a strategic platform for entering the European market. Conversely, organisations that delay their preparations risk losing access to the market after December 2025.

Kraken.com is the first company to receive a MiCA licence in Ireland

The Kraken cryptocurrency exchange has announced that it has obtained a licence to operate in the Republic of Ireland in accordance with Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA). This decision by the Irish regulator is an important milestone not only for the exchange itself, but also for the entire digital asset market in the European Union. Obtaining a MiCA licence means that Kraken will be able to provide its services in all 30 countries of the European Economic Area. This will enable the company to significantly accelerate its business scaling and offer European customers a unified, transparent and regulated service. It is important to note that before MiCA came into force, companies were required to obtain separate licences in each jurisdiction, which created fragmentation and additional barriers.

According to Kraken co-director Arun Sethi, the licence strengthens the exchange’s position in the European market and allows it to expand its product line, increase its institutional and retail customer base, and provide millions of users in the EU with access to secure and fully regulated cryptocurrency services. The MiCA regulation, which came into force in December 2024, established uniform standards for token issuers and crypto-asset service providers (CASP). It sets out mandatory requirements for transparency, consumer protection, risk management and supervision of operators. For companies, obtaining a MiCA licence is a prerequisite for legal operation in the European market. For investors, it provides additional confidence that they are interacting with a platform that complies with pan-European rules.

Kraken became the first international exchange to receive a MiCA licence in Ireland, highlighting the country’s role as one of Europe’s leading financial and technological hubs. Ireland is actively using its position to attract cryptocurrency companies by providing clear and predictable regulatory conditions. It is worth noting that Kraken is one of the top 10 global cryptocurrency exchanges by trading volume and is the sixth largest platform in the world. Obtaining a MiCA licence in Ireland complements a series of approvals issued to other companies in Europe: Coinbase previously obtained a licence in Luxembourg, and Bybit in Austria. Thus, the Irish regulator’s decision regarding Kraken confirms that the EU digital asset market is entering a new phase of institutionalisation. For customers, this means a higher level of protection and access to services that meet European standards, and for businesses, it means the ability to operate in a single legal space and use the licence passporting mechanism throughout the European Union.

Coinbase has decided to transfer its MiCA licence from Ireland to Luxembourg

The American cryptocurrency exchange Coinbase has officially obtained a licence to provide services under EU Regulation 2023/1114 on markets in crypto-assets (MiCA). The authorisation was granted by the Luxembourg Financial Sector Supervisory Commission (CSSF), allowing the company to offer digital asset services in all 27 member states of the European Union. At the same time, Coinbase announced the relocation of its European hub from Ireland to Luxembourg, making it the main platform for coordinating activities in the EU. Initially, from 2023, the company’s central office in Europe was in Dublin, and Ireland was considered the key jurisdiction for MiCA compliance. However, in 2025, the company changed its strategy, focusing on Luxembourg, which offered more favourable conditions for the regulation and development of the cryptocurrency business. Coinbase CEO Brian Armstrong emphasised that the company views Europe as one of its key markets and MiCA as an important regulatory standard for the industry. According to him, the choice of Luxembourg was due to its combination of a developed financial centre, a stable legal system and a comprehensive approach to regulating digital assets. The country already has several specialised laws dedicated to blockchain, which creates a more structured environment for cryptocurrency companies compared to Ireland, where there is no separate cryptocurrency legislation yet.

Despite the relocation of its headquarters, Coinbase has stated that it will continue to develop its presence in Ireland. The company plans to create around 50 new jobs in Dublin and maintain an office there as part of its European infrastructure. Daniel Seifert, head of Coinbase’s European division, noted that the decision to move to Luxembourg is not related to shortcomings in Irish jurisdiction, but is driven by Luxembourg’s appeal as an international financial centre. Coinbase became the first American cryptocurrency exchange to receive a MiCA licence in the EU, which allows it to provide regulated services throughout the single European market. At the same time, the company is one of the largest players in the industry, alongside other exchanges that have already obtained MiCA authorisations in various European countries, such as Bybit, OKX and BitGo. Coinbase’s decision demonstrates the growing competition between European jurisdictions for the status of leading cryptocurrency hubs and confirms the strategic role of MiCA as the basis for the regulation of digital assets at the EU level.

Cryptocurrency Taxation in Ireland 2025

Irish tax law treats cryptocurrencies as property, which means tax liabilities depending on the nature of digital asset transactions. A key distinction is made between investment activities and professional trading, which determines the applicable taxation. Transactions involving crypto assets, primarily investment sales, are subject to capital gains tax at a rate of 33%. If the income exceeds the established tax-free minimum, the profit is taxed, and it is permissible to take into account carry-forward capital losses, which can significantly reduce the tax burden in the future. Capital gains tax (CAT) at a similar rate applies to gifts and inheritance of cryptocurrency, taking into account the general allowances applicable to other forms of property. If the activity is classified as professional cryptocurrency trading (e.g., frequent, large and consistent transactions, accounting as a business), the profit is taxed at income tax rates: at the enterprise level – 12.5% (corporate tax), and in the case of an individual entrepreneur – at the maximum marginal rate of up to 55%.

The following points are relevant with regard to taxes on income from crypto activities:

• Income received in cryptocurrency for goods, services or bonuses is considered ordinary income and is subject to taxation at the applicable rates (income tax plus social security contributions).
• When exchanging cryptocurrencies between each other (e.g., BTC for ETH), each transaction is considered a realisation event — it is necessary to calculate the value in euros and record the profit or loss.
• When mining and staking, the rewards received are recognised as income at market value at the time of receipt, which creates a tax base for subsequent CGT events.

The Irish Revenue Service points out that cryptocurrency transactions require careful accounting and a clear definition of the nature of the activity. When determining whether an activity is subject to CGT or income, the so-called Badges of Trade, developed in case law on traditional assets, are used.

Finally, it is important that data on cryptocurrency transactions are stored properly – Revenue requires documents on purchases, sales, value in euros, dates, as well as proof of origin and supporting documents to be kept for at least six years.

Therefore, it is critical for cryptocurrency market participants in Ireland to:

• clearly distinguish between investment and trading activities,
• keep strict records of all transactions and related calculations,
• apply the correct tax strategy depending on the nature of the income.

Nevertheless, Ireland remains one of the key European jurisdictions where cryptocurrency regulation combines flexibility with clear tax obligations. In 2025, Revenue Irish Tax and Customs maintains an approach whereby cryptocurrencies are treated as property, and tax obligations are determined based on the nature of the transactions and the source of income.

The sale of cryptocurrency is recognised as a taxable event and is subject to Capital Gains Tax (CGT) at a rate of 33%, taking into account an annual exemption of €1,270. However, the purchase of cryptocurrency for euros and its storage in personal wallets is not subject to taxation. All acquisition costs and commissions are taken into account in the calculation of the tax base.

Income received in cryptocurrency from trading, mining, staking or as remuneration for services is treated as ordinary income. In this case, income tax rates apply: 20% within the standard band and 40% for income above the threshold. In addition, a universal social charge (USC) of up to 11% and social insurance contributions (PRSI) of usually 4% for the self-employed are levied.

Special attention is paid to transactions involving the exchange of cryptocurrency for other digital assets. Such transactions are recognised as sales and require the calculation of profit or loss in euros on the date of the transaction. A similar procedure applies when paying for goods and services with cryptocurrency: at the time of settlement, a CGT taxable event occurs, and companies are required to charge VAT on the goods or services, not on the cryptocurrency itself.

Losses from cryptocurrency transactions can be offset against capital gains in the current or future periods, but do not reduce ordinary income. In the corporate sector, profits from cryptocurrency trading are subject to corporate tax at a rate of 12.5%, passive income at a rate of 25%, and certain types of taxable income at a rate of 33%.

Taxation of DeFi transactions occupies a special place in tax practice. Contributing assets to a liquidity pool is treated as a sale of the original asset, returns from staking and farming are classified as income, and receipt tokens are recognised as new assets with a separate cost base.

The Irish Revenue Commissioners also emphasise the need for strict accounting of cryptocurrency transactions. Taxpayers are required to keep records of transaction dates, amounts in euros on the date of the transaction, wallet addresses, invoices and exchange statements for at least six years.

Tax payment deadlines are traditionally divided into several stages. Capital gains tax on profits earned between January and November must be paid by 15 December of the current year. CGT for December is payable by 31 January of the following year, and a full tax return, including cryptocurrency transactions, must be filed by 31 October.

Thus, in 2025, the tax regime in Ireland forms a balanced system: on the one hand, it allows investors and companies to take advantage of the developed European cryptocurrency market, and on the other hand, it requires transparency, accurate accounting and timely fulfilment of tax obligations. For individuals, this means the need to record all transactions in detail, and for businesses, it means ensuring the correct allocation of income between trading, passive and capital gains categories.

Tax Rates in Ireland 2025

How can Regulated United Europe help you obtain a MiCA licence in Ireland?

Obtaining a CASP licence in Ireland under Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA) is a complex and multi-stage process that requires thorough preparation, significant resources and professional support. The Central Bank of Ireland has high requirements for corporate governance, capital, internal procedures and customer protection, and expects applicants to have a deep understanding of the local regulatory context. Regulated United Europe provides comprehensive support to cryptocurrency companies seeking to obtain a MiCA licence in Ireland. Our assistance covers all key stages, from the initial analysis of the business model to interaction with the regulator and support for already licensed companies.

We begin by assessing the client’s business model and determining which types of services fall under MiCA. This allows us to identify potential risks in advance, calculate minimum capital requirements, and determine the optimal application strategy. Our team then prepares the necessary documentation, including internal AML/KYC policies, risk management plans, cybersecurity procedures, and descriptions of client asset protection mechanisms.

Particular attention is paid to the preparation of management and key employees. The Central Bank of Ireland has requirements for the professional suitability and integrity of CASP managers, so we help our clients meet these criteria by forming a board of directors and management in line with the regulator’s expectations. During the application stage, Regulated United Europe supports the client in all communications with the Central Bank of Ireland, clarifies the regulator’s comments and prepares responses to requests. This approach minimises the likelihood of rejection and speeds up the review process.

Our work is not limited to obtaining a licence. We also advise on MiCA compliance after authorisation, including regular reporting, updating internal policies, and preparing for inspections and supervisory reviews. By choosing Ireland to obtain a CASP licence, companies gain a strategic advantage: access to the single European market through passporting. Working with Regulated United Europe makes this complex process manageable and predictable, giving clients confidence in the outcome and long-term business stability.