Reading time: ~2 m
The government of Cyprus is developing a regulatory framework for the regulation of blockchain and cryptocurrencies, which will contribute to the development of innovation in the country.
This was announced by the Deputy Minister of Research, Innovation and Digital Policy of Cyprus Kyriacos Kokkinos (Kyriacos Kokkinos) at an event in Larnaca dedicated to digital assets, entrepreneurship and financial technologies.
Kokkinos said that the Cypriot authorities are taking a cautious approach to the use of cryptocurrencies. He drew attention to Malta, which attracted many cryptocurrency investors and companies operating in the blockchain industry. However, the Maltese authorities intend to strengthen control over compliance with anti-money laundering (AML) rules in order to comply with the strategic plan of the Malta Financial Services Authority (MFSA) to prevent crimes in the financial sector.
“Cyprus welcomes the use of digital assets, but we still have to act very carefully, regardless of the presence or absence of regulations governing cryptocurrency activities,” Kokkinos said.
Given that Cyprus is part of the European Union, when drafting a bill on the regulation of crypto assets, the local government should take into account the requirements of European regulators, Kokkinos noted. The Authorities of Cyprus are developing their own legislation to regulate crypto assets and may adopt it before European regulators complete their work on the regulatory framework.
“We are faced with a dilemma: wait for the European Central Bank to finalize its own version of the regulatory framework or act independently. The first scenario involves excessive regulation of the cryptocurrency industry. Therefore, for now, we will act alone, observing the rules. We must remember that the Central Bank of Cyprus is subordinate to the ECB, and our task is to challenge conservative central banks through the debates that we are already having with them,” Kokkinos added.
Last year, the Ministry of Finance of Cyprus began to study the possible risks associated with the use of digital currencies, and the National Betting Authority of Cyprus began to study the possibilities of blockchain to strengthen supervision of the gambling industry.
#authorities #Cyprus #developing #bill #regulate #cryptocurrencies