Ireland is excluding cryptocurrencies from a new state-backed savings and investment scheme aimed at encouraging residents to shift cash deposits into traditional capital markets.
Deputy Prime Minister and Minister for Finance Simon Harris unveiled the retail investment initiative to address a pattern of high cash holdings among Irish households. Irish residents currently hold an estimated $197 billion in bank deposits, with cash representing roughly 38% of household financial assets—well above the European Union average of 30%. Direct retail participation in listed equities stands at 2.3%, compared with the EU average of 7.5%.
Scheme Details and Structure
Modeled partly on Sweden's Investeringssparkonto tax-advantaged system, the proposed scheme will allow Irish tax residents aged 18 and older to hold eligible investments such as exchange-traded funds, listed shares, and corporate bonds under a simplified tax structure. The scheme will replace Ireland's standard 33% capital gains tax rate and 41% fund exit tax with a flat annual levy above a tax-free threshold, and waives Ireland's "deemed disposal" rule for assets within the account.
The initiative will exclude high-risk financial products, including crypto assets and derivatives. Operational details are expected alongside the national budget in October, with accounts set to launch in 2027.
Expanded Crypto Oversight
The exclusion of digital assets aligns with Ireland's increasingly restrictive approach to cryptocurrencies. Earlier this month, the Department of Finance launched Ireland's first National Anti-Money Laundering Strategy through 2030, placing digital assets and offshore financial flows at the center of state enforcement.
The multi-agency strategy introduces regulatory requirements for registered crypto-asset service providers, including enhanced identity checks for transfers involving self-hosted or private crypto wallets. Under the framework, transfers exceeding $1,150 to or from unhosted addresses require regulated providers to verify wallet ownership. Receiving intermediaries must deploy automatic controls to detect incomplete transaction metadata, enabling authorities to freeze or return noncompliant transfers.
The strategy incorporates EU rules including the Markets in Crypto-Assets regulation and the EU Transfer of Funds Regulation, ahead of a Financial Action Task Force peer review scheduled for 2026. Gambling operators must establish strict "source of funds" verification protocols for crypto transactions by 2027.
