Cyprus plans to tighten crypto-related regulations
Cyprus plans to tighten crypto-related regulations
Cyprus wants to create favorable conditions for the activities of companies providing services in the crypto sector. The country is one of the most cryptocurrency-friendly European jurisdictions.
However, the Cypriot Ministry of Finance intends to amend the current law on the prevention and suppression of money laundering, which will lead to stricter regulation of the industry.
According to the Cointelegraph, the ministry has prepared a draft for legislative changes. The ministry aims to bring Cyprus in line with international standards to combat money laundering and terrorist financing.
If the amendments are adopted, every crypto service provider will be required to register with the Cyprus Securities and Exchange Commission (CySEC); otherwise, they will be subject to fines ranging from 350,000 euros to imprisonment for up to five years.
It is worth noting that such a decision does not comply with CySEC rules, as it forces even companies with licenses from other European countries to register.
At the same time, most cryptocurrency companies register their businesses in Cyprus and do not report any difficulties in this regard. In June, ByBit received a CySEC registration, and in September, brokerage company eToro reported receiving a Crypto Asset Service Provider (CASP) license from CySEC.
Read also: Bybit launches a new spot trading tool.
