Ireland Tightens Oversight of Crypto Assets

Summary:
Ireland identifies cryptocurrencies as a major AML and terrorism financing risk.

Ireland has classified cryptocurrencies as one of the most significant threats related to money laundering and terrorist financing. The government has also announced plans to introduce new standards governing the acceptance of funds derived from digital assets. These measures are expected to come into force in the second half of 2027.

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The findings were published in the latest National Risk Assessment prepared by Ireland’s Department of Finance. It is the first government-led review in seven years to specifically address risks associated with digital assets.

According to the report’s authors, the growing number of cryptocurrency-related scams, money laundering cases, and other financial crimes is increasing pressure on regulators to strengthen oversight of the sector.

Irish authorities emphasize that the issue extends beyond criminal financing. Cryptocurrencies can also be used to evade sanctions, complicate tax enforcement efforts, and create corruption risks among individuals responsible for supervising the industry.

The report also highlights challenges stemming from inconsistent regulations across jurisdictions and activities conducted in less regulated areas of the market, such as decentralized finance (DeFi). Despite being a member of the European Union, Ireland has yet to implement some regulatory measures that are already in place in other major jurisdictions.

As part of the implementation plan, industry standards for accepting funds originating from cryptocurrency-related activities are expected to be developed by the second half of 2027. The initiative forms part of a broader strategy aimed at strengthening the country’s anti-money laundering (AML) and counter-terrorist financing (CTF) framework.

Data from the Central Bank of Ireland shows that around 10% of the country’s population held cryptocurrency investments as of December, underscoring the growing importance of the sector.

The report also references recent enforcement actions. In November 2025, the Central Bank of Ireland fined Coinbase Europe Limited approximately $24 million for breaches of anti-money laundering and counter-terrorist financing regulations. According to the regulator, the company failed to report issues within its transaction monitoring system in a timely manner.

The authors further note the increasing use of cryptocurrencies in corruption-related payments. They also recall that in 2022, proposals were introduced to ban political parties from accepting donations in cryptocurrencies, including Bitcoin, Ether, and privacy-focused tokens.

Ireland is not the only country tightening controls over the crypto sector. In 2026, Zimbabwe brought cryptocurrency firms under the supervision of its central bank, requiring them to register as digital asset service providers and comply with anti-financial crime regulations.

According to a Chainalysis report published in May, nearly 47% of organizations entering the market in 2026 implemented monitoring standards that would have ranked among the most stringent 10% of compliance frameworks in 2020.

However, Chainalysis notes that tracking indirect fund flows remains one of the industry's biggest challenges. In many cases, alert thresholds for funds linked to ransomware, fraud, darknet marketplaces, or sanctioned entities are between 10 and 20 times higher than those applied to direct transfers, potentially leaving gaps that can be exploited by criminals.