Digital currencies have not been perceived by the inhabitants of Europe as something unique for several years. The cryptocurrency business in the EU is gaining significant momentum. Among all countries in the European Union, Ireland has the most favorable options, including local laws and moderate taxes. More than 430 financial service providers are in the country’s jurisdiction, including some well-known crypto industries, such as Coinbase and Gemini. Ireland welcomes the use of digital currency in various areas of life and offers optimal conditions for obtaining a crypto license Ireland. The company can act as a gateway for cryptocurrency trading by getting permission.
The main difference between cryptocurrencies and fiat currencies is that cryptocurrencies can only exist in digital form. Sometimes cryptocurrencies are also referred to as “virtual assets.” This term refers to any digital representation of value that can be sold, transferred, or used for payment or investment purposes. Another essential difference between fiat and digital currencies is in their regulation. There is a vast difference in the license and permissions for transactions, currency exchange, and the security of individuals using digital currencies.
Licensing application processing time | 9 months |
State fee for applying | 50 euro |
Required share capital | from 25 000 euros |
Physical office | Necessary |
Accounting audit | Necessary |
Staff | Necessary |
Corporate income tax | 12,5% |
Annual Supervision Fee | No |
Ireland strives to remain one of those countries that always walks hand in hand with all the technological advances in the world. Here are some of the best opportunities to trade Bitcoin and other digital currencies in demand in the European Union. Thanks to optimal laws and regulations, registering new companies does not take much time and is very simple and convenient. As a result, many successful companies operating in the financial industry have chosen Ireland as their legal base for their operations. It should be further noted that Ireland has a favorable tax system, offering a relatively low tax rate of 12.5%. Also, a license allows you to freely conduct active activities and not receive additional permits for activities. There are several primary advantages, namely:
You can learn more about registering a company and applying for a license later in this article.
As mentioned earlier, all companies that plan to conduct any trading operations with virtual currencies must obtain an appropriate license. All companies must maintain confidentiality and comply with international security standards. These entities fall under the Irish Money Laundering Network (AML) and the Counter Financing of Terrorism (CFT) Network. All rules set by these organizations must be followed. The license for any activity related to cryptocurrencies is issued and controlled by the Central Bank of Ireland. It’s a bit different from the standard support you might be used to seeing.
If you plan to register your company’s activities, you should contact the Central Bank first. For your application to be approved, the decision-making panel must verify the following points:
Additional formal requirements apply to senior VASP employees. In addition, a company applying for registration must appoint at least one senior executive director, physically based in Ireland, who will act as a contact person with the Central Bank.
The most appropriate type of company to conduct digital currency-related activities is a private limited company. To register your activity, you should adhere to the following algorithm:
A more detailed procedure for registration will be known during the company registration process and may vary depending on the type of activity.
All companies that provide any services in relation to digital currencies must be registered with the Central Bank to combat money laundering and terrorist financing. If a company changes the direction of its activity and plans to operate as a PUVA, it must register with the Central Bank as a PUVA. The Central Bank of Ireland undertakes to process all incoming applications for registration as soon as possible. At the same time, the Central Bank also strictly and effectively performs the functions of a controller.
Step-by-step instructions on creating and registering a company for financial services in Ireland are described above. However, the specific authorization procedure may differ from that described above and will be determined on a case-by-case basis. First, you should familiarize yourself with all the legal documents that regulate this industry or seek professional help.
Before applying for registration of its activities, the applicant is advised to ensure that his company and services comply with the points below:
Suppose all the points confirm your type of activity. In that case, you can collect the documents in the article, apply for company registration, and obtain a crypto currency exchange license.
As you may have noticed, the application process for a financial services company can vary depending on the scope and nature of the services the company intends to provide. However, the license application process is quite simple:
If there are no comments, the applicant will receive a confirmation letter by email as soon as possible.
All standards of integrity and suitability apply to persons who will hold leadership positions in the company and carry out essential activities or represent the company’s interests. This primarily applies to money laundering policies and other prohibited activities. Persons who perform supervisory functions on behalf of the company must comply with the standards specified in the Central Bank Reform Act 2010. The person must be of impeccable reputation and meet the standards of fitness and integrity of the Central Bank.
Taxation of crypto-currency projects in Ireland Today, the activities of companies are subject to capital gains tax at a rate of 33% of profits. For legal entities, taxable income will be taxed at 12.5%. Cryptocurrencies are exempt from VAT, as they are considered negotiable instruments. Therefore, individuals engaged in the exchange of cryptocurrencies are not obliged to pay VAT. If transactions are made in cryptocurrencies, then they are converted into euros, according to the Irish tax system.
If you are afraid of the complicated procedure of registering a company and obtaining a cryptolicense license for activities related to digital currencies, you can resort to the help of professionals. Professionals will help you prepare a quality business plan, collect relevant documents, and apply for authorization. The cost of such services may vary depending on the tariff plan. However, the average price on the market is approximately 65,000 euros.
Yes. Any resident of the European Union can register a company and apply for a license.
It is necessary to register a company in Ireland, have full-time staff, and comply with all the standards set by the Central Bank of Ireland.
The average processing time for an application is up to 9 months.
Yes. However, the owner of the company must be a resident of a European Union country.