The Cypriot Ministry of Finance plans to amend the existing law on combating money laundering and terrorist financing, which will affect cryptocurrency service providers (CSP).
The Cypriot Ministry of Finance plans to bring local legislation in line with international standards set by the Financial Action Task Force (FATF), tightening the rules for crypto companies operating in the region. This is reported by the local media.
Thus, amendments to Cypriot legislation concern cryptocurrency service providers (CSP), which will have to undergo mandatory registration with the Cyprus Securities and Exchange Commission (CySEC). In case of violation of these rules, penalties will range from fines of up to €350,000 to imprisonment of up to five years.
Before amending the legislation, officials sought consultation with representatives of the Cyprus Bar Association, who expressed some concerns about the obligation to register with the CySEC on the part of CSPs holding valid licenses in other EU countries. However, the regulator didn’t make the amendment, including the supervision list of all CSPs providing services in Cyprus, regardless of where they’re registered.
Despite the fact that the country doesn’t have a separate law regulating the crypto industry, the cryptocurrency market in Cyprus is actively developing.
