Cyprus Plans Stricter Regulations for Cryptocurrency Industry, In Line with Global Standards
Summary:
Cyprus, known for its crypto-friendly stance, is considering stricter regulations for its cryptocurrency industry. The Ministry of Finance aims to revise the existing Prevention and Suppression of Money Laundering Law to align with international standards set by the Financial Action Task Force and MONEYVAL. With the proposed amendments, all crypto service providers must register with the Cyprus Securities and Exchange Commission or face penalties such as fines up to €350,000 and prison terms. Despite this, crypto companies—including ByBit and eToro—have successfully obtained licenses to operate in Cyprus.
Cyprus - a European country known for its hospitable approach towards cryptocurrency, is considering imposing stricter regulations on its cryptocurrency industry. An October 10th report from the Cyprus Mail stated that the country's Ministry of Finance is planning to revise the existing law on Prevention and Suppression of Money Laundering. The modification proposal, already submitted to the Parliamentary Committee on Legal Affairs, aims to align the country's law with the international Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards set by the Financial Action Task Force (FATF), and MONEYVAL's November 2022 report's recommendations.
In relation to this amendment, it becomes a mandatory requirement for every service provider trading in crypto assets to enlist with the financial regulator, the Cyprus Securities and Exchange Commission (CySEC). Non-adherence could result in serious consequences, ranging from hefty fines up to €350,000, imprisonment for a maximum of five years, or in some cases, both. However, reservations from the Cyprus Bar Association primarily pertained to crypto service providers holding active licenses from other European nations still having to register with CySEC. This provision was introduced in the amendments by CySEC itself. The Ministry of Finance has not yet commented on the issue.
As per reports, crypto companies have experienced no significant hurdles in setting up their operations in Cyprus. In recent news, crypto-centric brokerage firm eToro has secured a Crypto Asset Service Provider (CASP) registration from CySEC in September, joining ByBit, which obtained the license in June. Meanwhile, Binance, the world's largest crypto exchange which has been facing increasing regulatory scrutiny, opted to withdraw its registration from the Cypriot market in July, stating intentions to concentrate on larger regulated EU markets.
Published At
10/10/2023 10:52:11 AM
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