Cyprus drafts regulatory framework for cryptocurrencies

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A government official said Cyprus has drafted its own legislation to manage crypto assets and will likely pass it before Europe finalizes a uniform regulatory guideline.

Kyriacos Kokkinos, Deputy Minister of Research, Innovation and Digital Policy, announced this during a meeting in Larnaca with the local fintech community.

The meeting was organized by the Swiss consulting firm Kendris, which has offices in several countries, including Cyprus.

Kokkinos noted that Cyprus’ focus on research has yielded successes in this discipline, but not without the country learning some lessons along the way.

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Legislation governing the handling of crypto assets has been drafted in Cyprus (Entrepreneur).

Cyprus supports the use of cryptography

Cyprus Mail reported Thursday that when Kokkinos commented on the future of digital assets in Cyprus, including cryptocurrency, he walked a fine line between welcoming innovation and adhering to legislation.

Kokkinos, quoted by an English daily, specifies:

“I can confirm that Cyprus supports the use of digital and crypto assets, but we must be extremely careful and respect not only the current legislation, but also the absence of restrictions.”

With the island nation being a member of the European Union, Kokkinos stressed the need for caution. He observed that he did not care whether or not he aligned with Europe.

Instead, he said the country’s choice was whether or not to wait for the ECB to establish its own regulatory framework or to proceed independently.

“My answer is that we are going to go it alone while respecting the rules,” he said.

Crypto total market cap at $1.23 trillion on the daily chart | Source: TradingView.com

Evaluation of cryptocurrency functions

The legislation has been published and interested parties are encouraged to assess it, as revealed by the Deputy Minister. The Cypriot government has also invited a New York-based company to help enforce the legislation.

Regarding the banking sector as a whole, Kokkinos had a more pessimistic picture, lamenting the very conservative approach taken by commercial banks after the 2013 financial crisis.

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“Banks should be more accommodating to businesses and individuals looking to do business in Cyprus,” he continued, noting that while they have improved over the past 18 months, there is still room. to improvement.

Two representatives of Invest Cyprus, CEO George Campanellas and Vice President Spyros Vassiliou, also spoke on the occasion.

Meanwhile, G7 financial chiefs have urged nations to enact comprehensive cryptocurrency regulation. According to Reuters, the team issued a draft statement to this effect during a meeting in Koenigswinter, near Bonn (Germany).

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