Key facts
- Ireland will exclude cryptocurrencies from its new state savings and investment scheme.
- The scheme aims to encourage Irish households to move approximately $203 billion from bank deposits into other investments.
- Qualifying assets for the scheme include shares, bonds, funds, ETFs, and insurance-based products.
- Tánaiste and Minister for Finance Simon Harris announced the exclusion of crypto assets.
- The scheme is open to all Irish tax residents aged 18 and over, with tax-free contributions up to a certain threshold.
Ireland's upcoming state savings and investment scheme will not include cryptocurrencies, according to an announcement by Tánaiste and Minister for Finance Simon Harris. The initiative is designed to encourage Irish households to shift approximately $203 billion (€175 billion) currently held in bank deposits into more traditional investment vehicles.
The scheme, set to open next year, will permit investments in shares, bonds, funds, exchange-traded funds, and insurance-based products. Derivatives and interest-bearing cash are also excluded. This move aligns with a broader trend of increased regulatory scrutiny on crypto assets in Ireland, including the recent launch of the country's first national anti-money laundering strategy for digital assets.
Irish tax residents aged 18 and over will be eligible for the scheme, with contributions up to a specified tax-free threshold being exempt from taxation. An annual contribution cap will be in place, and details on thresholds and rates are expected on Budget day, October 6. Research from the Central Bank of Ireland indicates that Irish households hold a relatively low percentage of their financial assets in direct investments compared to the EU average, with about 10% of adults owning crypto assets, predominantly young men.