Ireland's government has decided to exclude cryptocurrencies from a new investment account that will be open to all adults from 2027.

Blockchain outlet Cryptopolitan reported on Aug. 31 local time that the new account will hold listed shares and bonds, regulated-market traded products and retail investment funds including ETFs, but will not allow cryptocurrencies and derivatives.

The policy was included in a retail investment tax roadmap released on Aug. 31 by Simon Harris, Ireland's deputy prime minister and finance minister, and Minister of State Robert Troy. The roadmap classified cryptocurrencies, together with derivatives, as high-risk and highly complex products. The account will also exclude interest-bearing cash.

The key aim is to increase retail investment through a new tax-incentivised personal investment account, while limiting eligible assets to a government-defined range. One account per person will be allowed for individuals aged 18 and over who are residents under Irish tax law and hold a Personal Public Service Number (PPSN). There will be no minimum contribution or mandatory holding period, but an annual contribution limit will be set.

The roadmap also set out a tax structure. Amounts below a tax-free threshold will not be taxed, while a low single annual tax rate based on the account's assessed value will apply to amounts above the threshold. The tax rate, the tax-free threshold and the annual contribution limit will be finalised on Oct. 6, the budget announcement date. Eligible providers will calculate, report and pay taxes on behalf of account holders. The plan is to allow transfers between providers on a tax-neutral basis. The legal framework will be included in a finance bill, and the accounts will begin operating from 2027.

The government views the scheme as a way to broaden participation in capital markets. Harris said capital markets should not feel like a domain only for people with significant wealth or financial expertise. He also said investing involves risk and it is desirable to take a medium- to long-term approach.

A notable feature of the scheme is an exception to the taxation of ETFs. Ireland has applied a "deemed disposal" rule that taxes some funds every 8 years as if they were sold even when no actual sale takes place. ETFs have been included, but the rule will not apply within the new investment account.

The deemed disposal tax rate was cut to 38 percent from 41 percent in the 2026 budget. A review of the system itself is continuing. Earlier this year, Harris told parliament he was not sure the tax met its purpose and described it as "old-fashioned". The government said it would take a broader look at the deemed disposal system in the coming weeks.

The roadmap also set follow-up tasks after the 2028 budget, including tax cuts, a review of deemed disposal and administrative simplification. This direction is linked to concerns that Irish households' investment participation rate is below the European Union average. Direct investment in listed shares and bonds accounted for 2.3 percent of Irish households' financial assets, below the European Union average of about 7.5 percent. The share of cash and deposits was 38 percent, higher than the European Union average of 30 percent.

A Central Bank of Ireland survey also showed that while Ireland holds more than 5 trillion euros in fund assets, its retail investment participation rate is low within the European Union. As a result, the government appears to have made clear that while it is introducing a tax-incentivised account to expand investment access, cryptocurrencies are excluded from the list of assets it seeks to encourage.

The European Union's DAC8 directive also took effect from Jan. 1, 2026. Exchanges and brokers must report user information and transaction data to national authorities. With Ireland's new investment account excluding cryptocurrencies, digital assets are expected to continue being managed under a separate regulatory and tax framework.