Virtual Currencies and Blockchain Technology
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Published on
Last updated on
On the 22 of March 2018, the Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD announced the creation of an internal working group (the Intra-Departmental Working Group) to monitor further developments in the areas of virtual currencies and blockchain technology.
This follows the Department of Finance's active research into virtual currencies and the blockchain ecosystem that exists in Ireland, Europe and globally.
The aims of the Intra-Departmental Working Group are as follows:
Alongside the announcement of the working group, a discussion paper called Virtual Currencies and Blockchain Technology was released.
When partaking in transactions relating to virtual currencies, consumers should refer to the guidance provided by the Competition and Consumer Protection Commission (CCPC).
This notice provides consumers with both an overview of virtual currencies and some of the consumer protection issues that should be taken into consideration.
In December 2017, the Central Bank of Ireland issued an alert in relation to Initial Coin Offerings (ICOs) that echoed warnings previously published by the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA).
In February 2018, the Central Bank of Ireland issued a further warning to consumers and investors regarding the risks of investing in virtual currencies.
Links to these statements are listed below:
Over the course of 2019, a number of international and European regulatory bodies have published research on the regulatory implications of cryptoassets and Initial Coin Offerings (ICOs). The purpose of these reports is to provide greater clarity to competent authorities and legislators. A selection of these publications have been listed below:
On 15 May 2018, the Office of the Revenue Commissioners published a tax and duty manual relating to the tax treatment of transactions involving virtual currencies.
The manual outlines tax considerations that apply to:
Businesses should also consider the Value-Added Tax (VAT) implications of their activities when partaking in transactions that involve virtual currencies. For further information on this topic, see Value-Added Tax Considerations