Understanding Cryptocurrencies in Ireland is a digital alternative to standard currencies that operate using lines of computer code. They allow payments to be made electronically and can be exchanged between individuals or companies. The technology behind cryptocurrencies is complex and the legal landscape around it continues to develop rapidly.
Currently, there are no restrictions on holding, trading or mining cryptocurrency in Ireland. However, if you earn income from these activities, including from mining, you will be subject to capital gains tax. This is calculated on the profit from disposal of cryptocurrency (selling price minus acquisition cost). The rate of tax you pay will depend on your circumstances, but it can be as high as 40%. This is in addition to Universal Social Charge.
Understanding Cryptocurrencies in Ireland: A Beginner’s Guide
The Central Bank of Ireland has compared cryptocurrency to a high-risk, speculative asset and recommends that you only invest what you can afford to lose. It also warns of the potential risks to consumers and businesses from cryptocurrency scams.
Despite this, a recent study by Finder found that 9% of Irish adults had bought or traded in cryptocurrency. This is likely to increase as more people become aware of the benefits and how it works. A new law called the Markets in Crypto-Assets Regulation (MiCAR) will introduce rules that regulate service providers for crypto. This will include those that offer custody, brokerage and advice services. It will also regulate the issuers of certain types of crypto-assets that are linked to official currencies or assets.…