Ireland Registers First Virtual Asset Service Providers
The Central Bank of Ireland (CBI) has made a significant milestone in the country’s fintech sector by registering its first virtual asset service providers (VASPs). This authorization comes under Section 26 of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.
FinTech Sector Expansion
The registration of VASPs is seen as a major boost to Ireland’s finTech sector, which has been gaining momentum in recent years. Virtual asset service providers offer services such as cryptocurrency trading, custody, and exchange, among others.
Key Services Offered by VASPs
- Cryptocurrency trading
- Custody
- Exchange
Client Asset Requirements
In related news, the CBI has introduced new client asset requirements (CAR) for banks carrying out MiFID investment business. CAR includes provisions on:
- Reconciliation and calculation
- Transfer of business
- Reporting requirements to the CBI
- Client disclosures
- Development of a client asset management plan
Fitness and Probity Regime
The CBI’s fitness and probity regime remains a key regulatory focus area, with ongoing obligations for regulated firms and pre-approval requirements for individuals nominated for customer-facing positions. The regime consists of three pillars:
Fitness and Probity Pillars
- Ongoing obligations
- Gatekeeper role
- Investigative and enforcement powers
Diversity and Inclusion
In efforts to promote gender diversity in the financial sector, the CBI released a report showing an increase in female applicants for senior positions in regulated firms. The Woman in Finance Charter, launched in 2022, aims to improve the number of women in management and board-level positions.
Key Initiatives
- Increase in female applicants for senior positions
- Improvement in number of women in management and board-level positions
New Mortgage Rules
The CBI is set to introduce revised and modernized consumer protection rules for mortgage borrowers, with a focus on supporting borrowers and enhancing information provision.
Credit Union Services Expansion
The Credit Union (Amendment) Act 2023 has been signed into law, enabling the expansion of credit union services in Ireland. This development is seen as an opportunity for non-traditional credit institutions to fill the gap left by a shrinking retail banking sector.
Key Benefits
- Opportunity for non-traditional credit institutions
- Filling the gap left by a shrinking retail banking sector
Pay Transparency Directive
The EU’s Pay Transparency Directive has come into effect, aiming to redress the gender pay gap through measures such as:
- Transparency in salary negotiations
- Equal pay for equal work
ECB Responsibility for Fitness and Probity Assessments
In a significant change, the European Central Bank (ECB) will be responsible for fitness and probity assessments of the management board of Systemically Important Institutions (SIs) and Key Function Holders in SIs.