Circle, a stablecoin issuer based in the Republic of Ireland, has reportedly announced plans to relocate its legal domicile to the United States. The decision is believed to be a response to the Organization for Economic Cooperation and Development’s (OECD) proposal for a minimum tax of 15% on the profits of larger multinational corporations. Republic […]
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Ripple Registered With Central Bank of Ireland
Ripple is now registered as a virtual asset service provider with the Central Bank of Ireland. The company explained that it will “seek to provide services to clients across the European Economic Area once the Markets in Crypto Assets Regulation (MiCA) comes into force at the end of 2024, subject to the acquisition of other necessary licenses.”
Ripple Now Registered in Ireland
Ripple announced Tuesday that the Central Bank of Ireland (CBI) has added its Irish subsidiary Ripple Markets Ireland Ltd. to its list of registered virtual asset service providers (VASPs). The regulator’s website states that companies are registered for anti-money laundering and countering the financing of terrorism purposes under Section 106A of the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 to 2021.
The announcement details:
Following the registration, Ripple will seek to provide services to clients across the European Economic Area once the Markets in Crypto Assets Regulation (MiCA) comes into force at the end of 2024, subject to the acquisition of other necessary licences.
The crypto firm established its Dublin office in 2022. Ripple explained that Ireland has a growing reputation as an attractive location for companies involved in developing innovative technologies for financial services.
Eric van Miltenburg, Ripple’s senior vice president for Strategic Initiatives, commented: “Ireland has positioned itself as a supportive jurisdiction for the virtual assets industry and consequently as a great place for businesses like Ripple’s to operate, reinforcing our decision to select Ireland as our primary base for EU regulation. By providing regulatory clarity for the industry, Ireland – and the EU more broadly – are boosting confidence in the digital assets, payments and fintech ecosystem and demonstrating their commitment to the long-term development of these industries.”
In October, Ripple’s Singapore subsidiary, Ripple Markets APAC Pte Ltd., secured its Major Payments Institution (MPI) license from the Monetary Authority of Singapore (MAS). During the same year, Ripple acquired the majority of its 35 money transmitter licenses (MTLs) in the U.S.
Furthermore, the Dubai Financial Services Authority (DFSA) approved XRP for utilization within the Dubai International Financial Centre (DIFC) in November. This approval enables licensed crypto firms in the DIFC to integrate XRP into their virtual asset services.
What do you think about Ripple registering with the Central Bank of Ireland as a virtual asset service provider? Let us know in the comments section below.
Crypto Exchange Coinbase Chooses Ireland as EU MiCA Hub
U.S. cryptocurrency exchange Coinbase has selected Ireland as the main regulatory hub for its operations across the European Union. The company hopes to obtain a license in Ireland that will allow it to provide services in EU member states under the pan-European Markets in Crypto Assets (MiCA) law.
Coinbase Bets on EU Growth Amid Regulatory Uncertainty and Pressure in US
America’s leading crypto exchange, Coinbase, announced it has chosen Ireland as its “MiCA hub” in the European Union. The trading platform said the decision is part of the realization of the second phase of its “Go Broad, Go Deep” strategy for international expansion.
Coinbase currently holds an e-money institution license and a virtual asset service provider (VASP) registration in Ireland as well as licenses and registrations in other EU countries. It has also applied for a MiCA license with the Central Bank of Ireland.
When it’s granted, the latter will permit the exchange to offer its services across the Union, operating under a single license and regulator. MiCA, which was adopted earlier this year, is set to enter into force in the member states by the end of next year.
The Coinbase international expansion continues
Ireland has been chosen for our EU MiCA hub.
Here’s why
https://t.co/mpc2t2u5EI
— Coinbase
(@coinbase) October 19, 2023
“Due to our existing operational structure in Ireland, we have access to deep talent pools with significant expertise in both financial services and innovative new technologies,” said Coinbase which has an office in Dublin and considers Ireland a leading jurisdiction in the crypto space.
In the U.S., Coinbase has been engaged in a legal battle with the Securities and Exchange Commission which has accused it and other major crypto platforms like of illegally trading unregistered securities. The exchange has been among those in the industry calling for introducing dedicated legislation rather than applying existing U.S. laws to crypto assets through courts.
The American crypto giant has welcomed the adoption of MiCA, describing it as a pivotal moment for cryptocurrencies on the Old Continent, and the clarity it provides for the industry that “shows that the region is recognizing the potential that emerging technology can provide.”
In the announcement, Coinbase noted that the average crypto adoption across the region currently stands at 10%, and in Ireland, 11% of the adults are invested in digital assets. The exchange expects the market in the European Union, with its population of 450 million, to grow in the future.
Coinbase’s Vice President for International and Business Development, Nana Murugesan, told CNBC this week that the exchange has been considering a number of member states for its hub since MiCA was passed into law. “It was a long decision making process and we’ve been very impressed with the engagement from Ireland throughout,” he emphasized, commenting on the company’s choice.
Do you expect other U.S. crypto platforms to focus their efforts on expanding business in Europe? Tell us in the comments section below.
Banking Scams Overtake Crypto Frauds in Ireland
Fraudsters targeting victims in Ireland are increasingly posing as bank officials rather than crypto promoters, the local press reported quoting police. Amid the growing trend, Irish investors have lost millions of euros to this type of schemes this year, with law enforcement authorities having recovered only a fraction.
Criminals Drop Crypto Frauds in Favor of Banking Scams
Cryptocurrency frauds are being replaced by scams in which criminals pose as representatives of reputable traditional banks, the Irish Independent revealed in an article. Investigators are working on multiple cases of fraud over fiat investments.
Nearly €20 million (over million) have been stolen from Irish citizens in these online fraud schemes since January, of which officers from the Garda National Economic Crime Bureau (GNECB) have managed to recover around €4 million, the report detailed.
While previously accounting for over 95% of the registered cases, crypto scams are no longer the most prominent type of investment fraud, investigators claim. A police source quoted by the newspaper explained:
In the last few months, what has become more and more common is that victims have been contacted often by phone or by email by fraudsters who are saying they work for legitimate, high-profile British banks or trading houses.
Meanwhile, cryptocurrency has lost some of its popularity among investors due to major scandals and court cases, the person added, elaborating: “So inevitably the organized gangs behind this are changing tack and the evidence is that the banking scams are the way they are making the most money now in terms of investment fraud, which is absolutely massive at the moment.”
The organizers of the banking fraud schemes often set up fake websites offering investment products or clone real online platforms. Victims are pressured to act quickly or make an urgent payment, transfer funds directly or download software which drains their bank accounts.
Ireland is a participant in an international law enforcement operation led by Interpol which resulted in the arrest of 975 suspects worldwide last year and the recovery of over €123 million as well as the blocking of almost 2,800 bank and crypto accounts linked to online financial crime.
What do you think about the new trend in online scams? Share your thoughts on the subject in the comments section below.
Coinbase Gets E-Money License In Ireland, Expanding European Foothold
n Coinbase has become one of the few companies with an e-money license from the Irish Central Bankn
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Bank of Ireland Execs Back Out of Testifying in OneCoin Scam Hearings
n Bank of Ireland executives change their stance about voluntary testimony in the OneCoin scam casen
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Coinbase Announces New Office in Ireland as Brexit Woes Deepen
A new blog post published by the US-based cryptocurrency exchange, Coinbase, announced plans to open a new office in Dublin, Ireland.
Coinbase Expands to Dublin Amid Brexit Woes
Coinbase, which is one of the largest cryptocurrency exchanges in the world, already has a number of employees in Europe. While these employees are currently based in London, England, Coinbase’s new blog post announced plans to expand to Dublin as well.
The expansion came as a part of the plan to scale up in European Union (EU), due to the fact that the number of customers from this part of the world grew faster than any other market throughout 2017. As the process of scaling continues, Coinbase wishes to attract the best talents that will help with creating a superior financial system for the entire world.
After careful consideration of numerous cities throughout the EU, Coinbase deduced that Dublin is the best choice for their new branch. Apart from excessive growth in interest in cryptocurrencies, Dublin was also found to be a pool of talent, as well as support for new technologies. This also includes the emerging cryptocurrency economy, which is why Coinbase feels that Dublin might be the perfect location for the exchange to branch out from.
As mentioned, the exchange also has a small team in London, which will be supported by the new Dublin office. Additionally, Dublin will also open up a variety of career opportunities. Another reason why Coinbase is choosing Dublin instead of expanding its London business is the so-called Brexit. The exchange simply wishes to ensure that their services will still be provided to users that require them even in a post-Brexit scenario, as stated by Coinbase UK division’s chief executive, Zeeshan Feroz.
EU Still Not Regulating Digital Assets
The situation regarding cryptocurrencies in the EU is complex, especially since they are still not regulated assets. Even so, several digital currency exchanges managed to receive a traditional form of license for trading fiat currencies. As for Coinbase itself, the exchange is officially regulated by the UK’s FCA (Financial Conduct Authority) and has received an e-money license.
This allows it to carry out regular money-laundering checks whenever it signs up new customers. This is a process similar to the one that traditional banks are conducting. Additionally, the exchange also needs to comply with different capital requirements, as well as to ensure the protection of their customers.
Ireland itself seems to be welcoming and supportive toward Coinbase’s decision to open up a new office in its capital. The move is expected to highlight Ireland’s competitive offering, as well as attractiveness for financial services.
Coinbase itself sees the move as another step on the journey to ensure that their platform is viewed as a safe and trustworthy place of trade. With new talents from Ireland joining its crew, Coinbase seems to be excited about its future in Europe.
Image from Shutterstock
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The Bitcoin Network Uses as Much Electricity as Ireland: Study
According to a new study, the Bitcoin network could be consuming as much as 0.5% of the world’s total electricity — a number comparable to the amount of power used by the entire country of Ireland.
Bitcoin and Electricity Usage
That said, determining exactly how much electricity the Bitcoin network uses, necessary for understanding its impact and implementing policy in the future, is not straightforward.
According to blockchain specialist Alex de Vries, who works at the tax advising firm PwC in the Netherlands:
“We’ve seen a lot of back-of-the-envelope calculations, but we need more scientific discussion on where this network is headed. Right now, the information available is pretty poor quality overall, so I’m hoping that people will use this paper as a foundation for more research.”
The estimates, based on de Vries’ background in economics, put the minimum current usage of the Bitcoin network at 2.55 gigawatts — as noted, almost as much electricity as Ireland. Another comparison puts a single transaction as using about as much electricity as an average household in the Netherlands uses in an entire month.
One of the biggest factors that contributes to the coin’s high electricity usage is also an inherent part of its design. Since its inception Bitcoin’s decentralized consensus has been enabled by its proof-of-work (PoW) algorithm, and the mining machines that perform this ‘work’ need tremendous amounts of energy to do so.
According to research published in April by equity analyst Charlie Chan and his team at Morgan Stanley, the key price point for Bitcoin mining profitability is ,600. As per their simulation, if the coin can’t stay above ,600, many Bitcoin miners will likely find it unprofitable to keep creating the cryptocurrency.
Bitcoin’s Energy Cost Moving Forward
Moving forward, the electricity needed to operate the Bitcoin network is only going to increase. By the end of 2018, de Vries predicts the network could be using as much as 7.7 gigawatts — as much electricity as the European country of Austria. Looking further ahead, if the price of Bitcoin continues to increase as some experts predict, de Vries believes the network could someday consume as much as 5% of the world’s total electricity, a tenfold increase from today’s 0.5%.
“To me, half a per cent is already quite shocking. It’s an extreme difference compared to the regular financial system, and this increasing electricity demand is definitely not going to help us reach our climate goals,” he said.
Another consideration environmentally is Bitcoin’s carbon footprint. The problem is that much of the coin’s network is fueled by coal-fired power plants in China, where electricity is produced at very low rates, but the impact on the environment is more marked.
Based on ‘conservative’ estimates from the Bitcoin Energy Consumption Index, the carbon footprint for each unique Bitcoin transaction totals almost 450 kilograms of CO2, which translates to 32,898 kilotons annually for the entire network.
Featured image from Shutterstock.
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