Regulation:

There is no law to implement the provisions of MiCA.

In Ireland, the Department of Finance was tasked with enacting the necessary secondary legislation to facilitate MiCA's implementation. This involved decisions on national discretions permitted under MiCA, such as the duration of transitional periods for existing VASPs and the adoption of simplified authorization procedures.

In addition, the Central Bank has been proactive in preparing for the implementation of MiCA, issuing several key documents to guide companies through the transition:

• MiCAR Authorisation and Supervision Expectations (December 2024): this document outlines the Bank's expectations for companies seeking authorization under MiCA. It emphasizes the need for robust governance, financial resilience, operational resilience, and effective AML /CFT measures; the guidance also highlights the importance of companies demonstrating sufficient substance within Ireland and maintaining clear organizational structures.
• Guidance Note for Crypto-Asset Service Providers – Key Facts Document (KFD): this note provides detailed instructions for applicant firms on preparing the KFD; it specifies the information required regarding the company's proposed business model, governance arrangements, risk management, and other pertinent details.

Procedure, timelines, fees:

Following the full application of MiCA, i.e. after 30 December 2024, the Central Bank must assess within 25 working days of receiving an application for authorisation whether all of the required information has been included in the application. At this stage, however, the Central Bank will not assess the quality of the information provided. The Central Bank may ask the applicant to supplement the application if some or all of the required information is missing. The Central Bank will set a deadline for the submission of any missing information. After the submission of missing information, the Central Bank will have 40 working days to make a qualitative assessment of the application. During this period, the Central Bank has the opportunity to submit additional requests for clarification, but only the first of these requests will suspend the 40 working day assessment period, for a maximum of 20 working days.

In addition to the above-mentioned official application phase, the Central Bank also implemented the pre-application phase. It consists of two stages:

1. initial engagement with the applicant - here the Central Bank provides a meeting before which the applicant must submit a proposal presentation at least 10 working days in advance, following the Central Bank’s content guidelines; during the meeting, the Bank outlines the authorization stages, supervision expectations, and the purpose of the KFD; and
2. submission of the KFD - upon completion of this stage, the Central Bank may give feedback on additional elements of the proposal that the Central Bank will require the applicant company to address and reflect in the formal application; or the Central Bank may provide feedback on significant items that it believes the applicant company should address and address before it submits a formal application.

Also, the Department of Finance confirmed that Ireland will not exercise the discretion under MiCA to grant existing CASPs a simpler authorisation process, on the basis that the existing VASP regime under the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021 as amended, is not comparable to the regime envisaged under MiCA.

Transition period:

Ireland has adopted a transitional period of 12 months, allowing entities that were providing crypto-asset services in accordance with national laws before December 30, 2024, to continue their operations until December 30, 2025, or until they are granted or refused MiCA authorization.

Any VASP not intending to apply for a MiCA authorisation should establish clear wind-down plans and make arrangements to cease providing services by the end of the transitional period adopted by the Department of Finance.

Physical office requirements

A CASP shall have a registered office in Ireland where it carries out at least part of their crypto-asset services.

Corporate Income Tax (CIT)

Companies resident in Ireland must pay CIT on their worldwide profits if these profits include both income and capital gains.

Ireland maintains a competitive CIT rate of 12.5% on trading income, which applies to profits from active trading activities.

A higher rate of 25% is levied on non-trading (passive) income, including dividends from non-resident companies (with certain exceptions), interest, rents, and royalties.

Profits and losses of a company transacting in crypto-assets will be recognised in the accounts and, if they arise from trading, will be taxed in accordance with CIT rules.

Capital Gains Tax (CGT)

Capital gains are taxed at a rate of 33%. Individuals benefit from an annual exemption on the first €1,270 of capital gains, meaning tax is only payable on gains exceeding this amount.

Profits from disposing of cryptocurrencies—whether through selling, trading for other cryptocurrencies, or using them to purchase goods and services—are subject to CGT at 33%.

Personal Income Tax (PIT)

Income up to €44,000 is taxed at the standard rate of 20%. Earnings above this threshold are subject to the higher rate of 40%.

Income generated from cryptocurrency activities, such as trading, mining, or receiving it as payment, is treated as taxable income. This income is subject to standard PIT rates.