BNY Mellon Urges Ireland to Enact Crypto Rules Ahead of EU Regulations, Report Reveals – Regulation

While authorities in the EU are still debating union-wide cryptocurrency regulations, a major US bank has reportedly pushed the Irish government to issue its own rules for the space. BNY Mellon launched its digital assets business in Ireland this year to offer custodial banking services to institutional investors.

Banking giant BNY Mellon calls for Irish crypto regulations

US banking company BNY Mellon, which is one Crypto entity In Ireland this spring, the country's finance ministry called on it to introduce crypto regulations while EU space rules are still being developed, the Irish press reported. The bank's digital hub in Dublin was established to provide digital asset custody services to institutions interested in cryptocurrency investments.

A report in the Irish Independent reveals that BNY Mellon representatives met with Irish Minister of State for the Treasury Seán Fleming in May to convince the government of the need to introduce national crypto regulations as European Union rules for the sector are still under consideration. According to Fleming's briefing notes for the department, BNY Mellon said:

While we acknowledge that the European Commission Crypto Asset Markets ( mica ) proposal aims to create a separate regulation for crypto assets at the European level. Given the timeframe for this legislative measure to come into force, national regulations quickly began to fill the gap within their respective national legal systems and we believe that Ireland should follow suit.

The Markets in Crypto-Assets Regulation aims to harmonize cryptocurrency legislation across the 27 EU member states with common rules for digital asset custody, capital requirements for service providers and improved investor protection. These standards should apply to both decentralized digital currencies and fiat-backed stablecoins.

BNY Mellon expects the new regulations to come into force in 2023 at the earliest. Meanwhile, several European countries have introduced their own laws in recent years. An example of this is the German Fund Location Act, which came into force in the summer. Its provisions relaxed the rules for a category of institutional funds called Special funds ', who can now invest 20% of their portfolio in crypto assets.

"As change accelerates in other jurisdictions and to meet customers' changing needs for digital assets, we would welcome a clear and comprehensive strategy to create an ecosystem of attractive digital technologies in Ireland," the government official was quoted as saying in the notes, while BNY Mellon declined to comment on the discussions.

Irish media also revealed that the US bank stressed the importance of securing a talent pool in the country's crypto and blockchain space, which would enable members of the growing industry to offer these types of services. The financial firm further noted that Ireland competes with Israel and New York for relevant blockchain expertise within BNY Mellon.

“Developing this talent in Ireland at a pace consistent with expected growth will be challenging,” the banking group reportedly said. BNY Mellon has had a presence in the Republic of Ireland for the past 25 years and operates from offices in the capital Dublin, Cork and Wexford, where it employs around 1,000 people, the report added.

With a business-friendly climate and a positive attitude towards financial innovation, Ireland has established itself as an attractive destination and European base for crypto companies and fintech arms of major players seeking access to the EU common market. A number of such stores have been Opening of offices there for the last few years and looking for skilled workers. These include well-known names such as crypto exchange Kraken and Goldman Sachs-backed fintech Blockdaemon.

Do you think Ireland will enact its own crypto regulations before EU-wide rules are enforced? Tell us in the comments section below.

Photo credits: Shutterstock, Pixabay, Wiki Commons, BNY Mellon