Niall Esler
Partner
Ireland
This update is brought to you by our Regulatory & Risk Advisory practice group in Ireland.
Our aim is to keep you informed of the fast-evolving legal landscape, from new legislation and guidance to significant case law and observations. Sign up here to receive the next update in your inbox.
The 'key dates' section highlights key legislative and reporting dates relevant to Irish CASPs.
Key developments this month include:
- Central Bank of Ireland updates to the Consumer Protection Regulations and the Minimum Competency Code to align with MiCAR.
- Central Bank of Ireland Discussion Paper on DLT and tokenisation in financial services
- European Commission EU Inc proposal – a framework for shares to be issued on DLT.
- Eurosystem roadmap for the Appia project (its project for a tokenised wholesale financial ecosystem) and its comprehensive payments strategy.
- ESMA's Trends, Risks And Vulnerabilities Risk Monitor with insights on the crypto-asset market.
Legislation and guidance
Ireland
Updates to the Consumer Protection Regulations
27 March 2026 – The Central Bank (Supervision and Enforcement) Act 2013 (Section 48) (Consumer Protection) (Amendment) Regulations 2026 were published which amend the Consumer Protection Regulations 2025 which form part of the Consumer Protection Code 2025 (CPC 2025).
- The amendments align certain obligations under the Consumer Protection Regulations, regarding knowing your customer and suitability requirements with Article 81 of MiCAR for crypto-asset service providers (CASPs).
- In particular, the amendments note that for CASPs the "statement of suitability" to be provided under Regulation 18 of the Consumer Protection Regulations includes the report on suitability and periodic statement referred to in Article 81 of MiCAR.
- Note that the CPC 2025, consisting of the Standards for Business Regulations 2025 and the Consumer Protection Regulations 2025, which apply to CASPs, is in force from 24 March 2026.
Central Bank CASP Updates
27 March 2026 - The Central Bank of Ireland (Central Bank) published a Notice of Intention proposing to revise the scope of the Minimum Competency Code 2017 (MCC) to incorporate knowledge and competence requirements for staff in CASPs to align with the ESMA MiCAR Guidelines.
- The proposals would require staff of CASPs who give information or provide advice on crypto‑assets or crypto-asset services to meet the minimum knowledge, qualification and experience thresholds set out in the European Securities and Markets Authority (ESMA) MiCAR Guidelines.
- In particular, staff giving information on crypto‑assets must have at least six months’ relevant full‑time equivalent experience, while staff providing advice must have at least one year’s relevant experience. Where a person has not yet acquired the appropriate qualification or experience (or both), they may only perform the relevant function under the supervision of an appropriately qualified and experienced person, for a maximum period of four years.
- The amendments will also introduce a continuing professional development (CPD) requirement: staff giving information on crypto-assets will be required to complete 10 hours of CPD per year, while staff providing advice on crypto-assets will be required to complete 20 hours of CPD per year.
- Transitional arrangements exist for staff who are already active in crypto-asset roles as at 28 July 2026.
- As a next step, the Central Bank will publish the Addendum to the MCC. These changes will come into force for anyone giving information or providing advice on crypto-assets or crypto-asset services on 28 July 2026.
27 March 2026 – The Central Bank updated its Guidance Notes on the Risk Evaluation Questionnaire (REQ) for CASPs.
- Section 8.8 of the Guidance Notes (concerning politically exposed persons) has been updated to reflect guidance and draft Regulatory Technical Standards published by the EU Anti-Money Laundering Authority.
- The term "non-high risk" has been removed for fields FQM, FQN, FQO and FQP (sanctions screening of beneficial owners and representatives).
- FMS (which concerns expected transaction profiles) now refers to payment institutions in addition to banks.
- Section 8.3.4 "Crypto-Assets" has been separated into a dedicated section.
- Section 7 has been updated to clarify the applicable data points for CASPs previously registered as VASPs.
- The Central Bank has also published as part of the REQ CASP documents a slide deck from the REQ workshop for CASPs.
Europe
EU Inc proposal
18 March 2026 – The European Commission has published a proposal for a Regulation on the 28th Regime Corporate Legal Framework (EU Inc).
- This proposal aims to address the fragmentation of national regulatory frameworks and the resulting obstacles for companies across the single market. It presents a corporate legal framework including a harmonised company legal form to be introduced in the national order of each Member State.
- EU Inc. companies would be fully digital throughout the entire company lifecycle, from incorporation to winding-up. The proposal provides for a fully digital register of dematerialised shares with shares being freely transferable unless otherwise provided in the articles of association. The registration of shares into the digital register of shares shall have constitutive effect and evidence the ownership of the shares.
- Provided that the EU Inc. company meets the requirements for the digital share register and the digital share certificate, it should be free to choose how to establish and maintain the register, including the choice of whether to use distributed ledger technology (DLT) for this purpose or not and whether digital share certificates should be provided in tokenised form or not.
- The proposal is now being discussed by the European Parliament and Council, with the aim of reaching an agreement by the end of 2026.
Other updates
Ireland
Central Bank Discussion Paper on DLT and tokenisation in financial services
5 March 2026 – The Central Bank has published a discussion paper on the use of DLT and tokenisation in financial services.
- The discussion paper highlights the potential benefits of DLT and tokenisation in creating efficiencies in financial systems, supporting innovation, and enhancing transparency and auditability. It also identifies areas of concern, such as a lack of legal and regulatory clarity, operational resilience and scalability, and a need for reliable and verifiable digital identity frameworks.
- The paper explores multiple potential use cases, including tokenisation of money market funds and exchange traded funds, use of DLT for primary issuance of bonds, and cross-currency payment-versus-payment transactions between central banks using DLT.
- The Central Bank is seeking feedback from stakeholders on the role of DLT and tokenisation in the financial ecosystems. The paper is open for responses until 5 June 2026.
Central Bank CASP Updates / Commentary
10 March 2026 – At a CASP Industry Briefing hosted by the Central Bank, Gerry Cross (Director of Capital Markets & Funds) delivered opening remarks in which he discussed developments across the sector.
- Mr Cross outlined the Central Bank's objectives for 2026, including the launch of a new quarterly CASP regulatory return, the new CASP authorisation portal, and the Central Bank's discussion paper on DLT and tokenisation.
- In terms of lessons learned from the last year that will be helpful to CASP applicants, Mr Cross highlighted three key themes:
- The importance of clarity on the business model in light of MiCAR and in particular the ESMA Broker Model Opinion;
- Putting the necessary resources behind the application so that the firm is well placed to navigate the process and deliver on the asks MiCAR makes of them; and
- Being prepared and thinking about how to operationalise the business.
24 March 2026 – The Central Bank has published a Systems Submission Guide to assist CASP applicant firms in submitting their applications for authorisation via the Central Bank Portal.
- The guide provides step-by-step guidance on submitting pre-application and application documentation on the portal, managing an application, and how to communicate securely with the Central Bank.
- Since 2 April 2026, CASP authorisation applications are to be submitted via the Central Bank Portal.
Europe
ECON draft report on digital assets
24 March 2026 – The ECON draft report on digital assets – challenges for the competitiveness and integrity of the EU's financial system, which was published on 19 February 2026, has been amended.
- For more information on the ECON draft report, please see our February CryptoReg Update.
- The amendments are extensive and include MiCAR-specific commentary including:
- Noting that that decentralised finance, crypto-asset lending and borrowing, including staking, currently fall outside the scope of the MiCAR; is concerned that these activities are also particularly vulnerable to high money laundering and terrorist financing risks due to limited user verification and lack of oversight; calls on the Commission to take action to close this regulatory gap and address related risks.
- Calls for a targeted amendment to MiCAR to facilitate more market-driven issuance of euro-denominated stablecoins, thereby promoting innovation and enhancing the competitiveness of the EU financial services sector in the digital age.
- Highlights the growing risks arising from third-country entities and the misuse of the ‘reverse solicitation’ clause to target EU clients without a MiCAR authorisation; calls for stronger cooperation between ESMA, AMLA and national competent authorities to detect and address third country entities circumventing MiCAR rules and for strict enforcement to ensure this remains a narrow exemption and does not become a standard business model for third-country entities.
EU Digital Euro / Tokenisation Updates
5 March 2026 – The European Central Bank (ECB) has published a call for expression of interest, inviting payment service providers (PSPs) to participate in a pilot of the digital Euro.
- The aim of the pilot is to validate digital Euro functionalities and operational processes. A "beta digital Euro" without legal tender status will be used.
- The pilot is expected to begin in the second half of 2027 and will run for 12 months. PSPs are invited to submit an expression of interest by 14 May 2026.
- In connection with the pilot, the ECB has also launched an FAQ page.
10 March 2026 – The European Commission published a report on preparedness in the EU financial sector.
- The report discusses the digital Euro project and notes that going forward, the development of the Savings and Investments Union and the introduction of the digital euro is expected to improve the overall resilience of the EU financial sector and to further improve its level of preparedness.
11 March 2026 – The Eurosystem has published the roadmap for Appia. Appia is a long-term wholesale payments project aimed at exploring the development of an EU financial ecosystem based on tokenisation and DLT but grounded in central bank money.
- The roadmap highlights the potentially transformative role of DLT in the EU financial markets. It also highlights the risk of market fragmentation arising from disconnected DLT infrastructures and stresses the need for coordination, interoperability and common standards across tokenised markets.
- A central theme of the roadmap is the preservation of central bank money as the anchor of trust, financial stability and effective monetary policy in tokenised wholesale markets.
- Work on Appia will run in parallel with Pontes, the Eurosystem's project to allow settlement of DLT transactions in central bank money by linking DLT platforms to TARGET services (expected to launch in Q3 2026). The two projects are expected to feed into each other as they progress.
- The Eurosystem aims to deliver a blueprint (consisting of key findings, principles and recommendations) for a tokenised wholesale financial ecosystem by 2028.
- Alongside the roadmap, the ECB has launched a public consultation, inviting public and private stakeholders to provide feedback and to express interest in contributing to forthcoming work on the project. The consultation closes on 22 April 2026.
31 March 2026 – The Eurosystem has today published its comprehensive payments strategy, outlining its vision for the evolution of Europe’s payments amid rapid technological change.
- The strategy sets out the Eurosystem's approach to retail, wholesale, business-to-business and cross-border payments in the EU. Across all forms of payment, the ECB confirms that central bank money will continue to anchor the monetary system, preserving trust and stability throughout the Eurozone.
- The strategy supports the use of tokenisation and DLT in payments and settlement, provided they are compatible with central bank money. In wholesale markets, the ECB envisages a role for private settlement assets such as tokenised deposits and stablecoins, but only where they are euro-denominated, EU-governed, and properly designed and regulated.
- The Pontes and Appia initiatives are referenced as key aspects of the Eurosystem's strategy for developing DLT-compatible central bank money and settlement infrastructures.
Risks and vulnerabilities reports
11 March 2026 – ESMA published its first Trends, Risks And Vulnerabilities Risk Monitor for 2026, assessing key systemic risks across EU financial markets.
- ESMA highlighted that the October 2025 crypto market disruption (triggered by President Trump's announcement of a 100% tariff on Chinese imports) exposed structural vulnerabilities, including high leverage, price volatility, and operational weaknesses at certain trading venues.
- In relation to stablecoins, ESMA notes the impact of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act in the US paving the way for institutional adoption and global expansion. It notes that while Euro-denominated stablecoins in the EU are expanding, they remain small.
- Available data as of Q3 2025 also suggest that the number of active decentralised finance users has halved since the peak of May 2025, back to levels seen before the surge of late 2024. Yet, trading volumes processed on decentralised exchanges are increasing and perpetual futures protocols are booming.
- On the topic of tokenisation, the report notes that impediments to wider adoption are mainly threefold: technical interoperability challenges, the absence of widely accepted solutions for onchain cash payments, and regulatory uncertainty.
27 March 2026 – The Joint Committee of the European Supervisory Authorities published its Spring 2026 Update on Risks and Vulnerabilities in the EU Financial System.
- The Joint Committee notes that crypto-asset values have dropped significantly since October 2025, while stablecoins have continued to grow at a slow pace.
- It highlights that stablecoins are increasingly integrated with traditional finance and are highly concentrated, amplifying risks of a spillover to traditional financial markets, should investor confidence in stablecoins decline.
Speeches
4 March 2026 – Kyriakos Pierrakakis, Eurogroup president, delivered a keynote speech titled "Digital Finance: Catalyst for European transformation" at the EIB Group Forum.
- Mr Pierrakakis discussed the potential of DLT to reduce frictions in clearing and settlement, lower costs of issuance and intermediation, accelerate cross-border payments and expand access to investment.
- He emphasised the importance of developing digital finance infrastructure in order to reduce the cost of capital, increase innovation, and allow capital markets across Europe to function effectively at scale.
5 March 2026 – Verena Ross, Chair of ESMA, delivered a keynote speech at the ASIFMA annual conference, in which she discussed the role and priorities of ESMA.
- Discussing the digitalisation of global markets, Verna Ross noted the importance of MiCAR as a harmonised framework for CASPs operating in the EU. She noted the proposal for supervision of MiCAR to be brought under ESMA, reflecting the cross-border nature of the activities.
- Verna Ross also highlighted the transformative potential of tokenisation of traditional financial instruments to streamline issuance, trading and settlement, enhance transparency, and reduce operational frictions across the value chain.
23 March 2026 – Piero Cipollone, a member of the ECB's executive board, delivered a keynote speech titled "Building the rails for Europe's tokenised financial markets" in which he set out the Eurosystem's vision for scaling tokenised capital markets in the EU.
- He identified two key obstacles to scale: platform fragmentation, arising from the coexistence of multiple non-interoperable DLT networks, and the absence of a trusted on-chain settlement asset, in particular tokenised central bank money.
- He emphasised that, without tokenised central bank money, participants in DLT-based markets may be required to settle transactions using assets that expose them to price volatility or credit risk, limiting market development.
- Mr Cipollone stated that three conditions must be met to enable a scalable tokenised financial ecosystem in Europe:
- a safe settlement anchor capable of supporting scale and innovation;
- a genuine public-private partnership between central banks and market participants; and
- a legal framework that matches Europe's technological ambition and reduces post-trade fragmentation.
- In this context, he highlighted Pontes, Appia, and the DLT Pilot Regime as key initiatives supporting the development of European tokenised financial markets, with Appia intended to provide a long-term blueprint for an integrated tokenised financial ecosystem.
24 March 2026 – Piero Cipollone gave an introductory statement at the Committee on Economic and Monetary Affairs of the European Parliament in which he discussed preparations for the launch of the digital Euro.
- Mr Cipollone confirmed that the Eurosystem is continuing technical preparations, with any issuance of a digital euro conditional on the adoption of the EU legislative framework.
- He highlighted ongoing work on digital euro piloting and reiterated the importance of central bank money as the settlement anchor, referencing Pontes (expected to launch in Q3 2026) and the Appia roadmap as complementary initiatives supporting tokenised financial markets
