Zodia Custody has become the first dedicated cryptoasset custodian registered in Ireland after being added to the Central Bank's Virtual Asset Service Provider Register.
The London-headquartered institutional cryptoasset servicing company is a wholly-owned subsidiary of Standard Chartered Bank, and it established its Irish arm, Zodia Custody (Ireland) Ltd, last August.
The Central Bank found that Zodia satisfies institutional investors' need for a cryptoasset servicing provider that meets institutional standards and expectations and the company will be subject to money laundering and anti-terror laws following its registration.
Cryptoassets were brought within the scope of the Criminal Justice (Money Laundering and Terrorist Financing) Act when it was amended last April, and registration is now mandatory for all firms providing crypto services in Ireland.
Following the European Union’s agreement on Markets in Crypto-assets Regulation (MiCAR) in June 2022, Zodia Custody Ireland’s registration will mean the company is well positioned to service clients across the EU when this regulatory regime comes into force.
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"There’s been a lot of activity surrounding cryptoassets in Ireland recently, with the CBI’s approval of a Qualifying Investor Alternative Investment Fund to invest in cryptoassets, the Irish Funds Industry Association publishing a paper on cryptoassets and several firms establishing a presence here to build out the ecosystem," said John Cronin, CEO of Zodia Custody Ireland.
"We aim to play our part by providing institutions with a safe and secure solution for investing in cryptoassets. We are in the process of obtaining similar registrations in jurisdictions across Europe, ensuring we are well-positioned for MiCAR.”
Minister of State at the Department of Finance Seán Fleming said the move was "highly significant for Ireland as the government seeks to focus on innovation in the financial services sector as a key provider of growth in the economy.
"Blockchain technology is one of the great disruptors for payments and capital markets. Ireland can grasp this opportunity with our strong track record for building globally recognised payment companies and innovative financial services businesses. I wish Zodia Custody every continued success for the future.”
Kieran Donoghue, global head of strategy, public policy and international financial services at IDA Ireland, added: "Zodia Custody’s decision to establish its EU crypto custodian business in Ireland and to secure registration as a Virtual Asset Service Provider (VASP) is a significant development in an emerging and rapidly growing sector of the financial services industry.
"This investment will act as a strong reference case in seeking to further develop the nascent crypto custody sector. We are grateful for Zodia’s commitment to Ireland and the leading-edge capabilities it will bring to the industry here across governance, custody and compliance. I wish John and his team every success.”
(Pic: Chesnot/Getty Images)
