Ireland -- Stablecoin Regulations Regulatory Overview

Ireland regulates stablecoins under the EU's Markets in Crypto-Assets Regulation (MiCA), transposed via the European Union (Markets in Crypto-Assets) Regulations 2024 (S.I. No. 607/2024), with the Central Bank of Ireland (CBI) as the national competent authority supervising issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs).[1][2][5]

Classification

• Stablecoins pegged to a single official currency (e.g., EUR) are classified as e-money tokens (EMTs); those referencing multiple assets are asset-referenced tokens (ARTs). They are not legal tender, payment tokens, or securities under MiCA.[1][2][5]
• Issuers of EMTs must be authorized as credit institutions or electronic money institutions under the Electronic Money Directive (EMD2), in addition to MiCA Title IV requirements.[1][2]

Issuer Licensing

• ART and EMT issuers require prior CBI authorization, involving a pre-application phase, business model review, governance, and technical assessment (typically 6-12 months).[1][2][5]
• Crypto-asset service providers (CASPs) handling stablecoins need authorization from 30 December 2024; a 12-month transitional period ends 29 December 2025 per S.I. No. 607/2024, Regulation 20.[2][5]
• Examples include Confirmo, authorized as a Payment Institution under Payment Services Regulations 2018 and CASP under MiCA.[4][6]

Reserve Requirements

• MiCA mandates strict reserve rules for ARTs and EMTs: reserves must be held in liquid, low-risk assets matching the token's value, with segregation, transparency, and regular audits under Title IV.[1][2]

Redemption Rights

• Issuers must offer redemption at par value (minus fees) upon request, ensuring prompt settlement and consumer protection under MiCA issuer obligations.[2]

Algorithmic Stablecoin Rules

• No specific mentions in sources; algorithmic stablecoins fall under general MiCA rules for ARTs if asset-referenced, but pure algorithmic designs (without reserves) face high scrutiny due to MiCA's emphasis on stability and reserves. They likely require ART/EMT authorization if marketed as stable.[1][2]

CBDC Interaction

• No direct rules specified; MiCA focuses on private stablecoins (ARTs/EMTs) without referencing interactions with a digital euro or other CBDCs.[1][2][5]

Key Legislation and References (official CBI page: centralbank.ie/regulation/markets-in-crypto-assets-regulation):

• Regulation (EU) 2023/1114 (MiCA): Core framework, applicable to ART/EMT issuers from 30 June 2024 (OJEU 9 June 2023).[5]
• S.I. No. 607/2024 – European Union (Markets in Crypto-Assets) Regulations 2024: Transposes MiCA, designates CBI, sets transitional measures.[2][5]
• Criminal Justice (Money Laundering and Terrorist Financing) Acts: Pre-MiCA AML for VASPs.[2]
• Payment Services Regulations 2018: Supports stablecoin payments via licensed institutions.[4]