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BNY Mellon Urges Ireland To Start Developing Cryptocurrency Regulation

New York-based bank BNY Mellon urged the Irish government not to wait for the European Union to provide guidance on the regulation of cryptoassets, but suggested starting to develop its own rules.

How
informs published by Bitcoin.com, this year BNY Mellon opened a digital asset division in Dublin to provide custodian services to institutional investors. Given the interest of large bank clients in digital currencies, BNY Mellon asked the Irish Ministry of Finance to expedite the development of rules for the use of crypto assets in the country. BNY Mellon has already discussed this topic with Irish Finance Minister Seán Fleming.

The bank acknowledged that the draft law on the regulation of cryptocurrencies in the European Union (MiCA), containing general rules for the issuance and circulation of cryptoassets, is aimed at protecting investors. However, this bill will enter into force no earlier than 2023, so many countries have already begun to fill this gap by amending legislation and adapting it for the cryptocurrency industry. So, in the summer in Germany, a new Fund Placement Act came into force, allowing special funds to invest up to 20% of the portfolio in bitcoin and ether. BNY Mellon has called on the Irish government to follow the example of Germany and other countries.

“Given that many jurisdictions are starting to amend their laws to meet the growing demands of customers, it really makes sense to develop a clear system for controlling cryptocurrencies,” said Fleming.

However, the situation is complicated by the fact that Ireland is very wary of cryptocurrencies. Last year, Irish banks began closing the accounts of cryptocurrency companies. In addition, the Central Bank of Ireland has described cryptocurrencies as speculative assets with a high level of risk, comparing investing in them with gambling.

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