A New Frontier for Regulation of Crypto Providers in Cyprus
Cyprus has transposed the 5th EU AML Directive into local legislation on the 18th of February 2021. The legislation came into force on Tuesday, the 23rd of February 2021 with its publication in the Official Gazette.
There are a number of important changes such as the implementation of central Beneficial Ownership Register, certain changes in relation to the definition of Political Exposed Persons (PEPs) and to the due diligence procedures on High-Risk countries among other changes.
However, what is important for Cyprus and its Crypto strategic positioning is the new provisions for Crypto Currency and Crypto Assets Providers.
Providers of services relating to Crypto Currencies/Assets will now be regulated under the Cyprus Securities and Exchange Commission (CySEC).
CySEC will create and maintain a register of Crypto Providers where all providers must comply with the regulations and requirements set by CySEC. A formal registration procedure is expected to be implemented by CySEC towards this.
This is a very important development that opens new frontiers for Cyprus. Crypto Providers will be able to add substance, regulation and trust in their operations by becoming approved regulated entities through CySEC. This should empower them to openly market and promote their services across Cyprus and the EU.
