Cyprus has taken a big step in regulating the crypto market by announcing new regulations. Effective immediately, providers of services related to cryptocurrencies will need to register with CySEC and adhere to certain operating conditions before they can offer their products or services on Cyprus’ soil.
The European Union is currently working to make the EU a safer place by implementing stricter policies that will prevent money laundering and terrorist financing. In recent guidelines issued, it was revealed how businesses should properly comply with these new measures in order to avoid sanctions from the Commission for failing to do so
The watchdog has initiated an informative article about AMLD5’s transposition into law across all of Europe. The piece, only published in Greek, details what procedures companies can take toward complying with this initiative while also outlining potential side effects on business owners who fail to meet compliance requirements.
CySEC has rolled out their fees for providers would wish to get registered. The first time it will be 10,000 euros with 5,000 as a renewal fee per year. A board of four people would also need two executives and two non-executives according to CySEC’s guidelines which can’t change because otherwise, they might not actually work properly!
You want your company to be able to comply with CySEC regulations, but you’re not sure how. Fortunately, we have the answers for you!
One of the most important things that companies should do is maintain a good reputation and excellent security policies so they can stay compliant.
This means being aware of what type of information needs protection as well as implementing systems that keep this data safe from breaches or theft in order to protect customers’ sensitive personal financial information on-site at all times when possible.
You also need appropriate policies – for instance establishing clear guidelines about password strength requirements or creating strong encryption algorithms where necessary- and remuneration requirements specified by CySEC such as including provisioning services if employees are using mobile devices outside their own network.
The Cypriot financial watchdog has finally issued a statement, after much anticipation from the public. They have clarified many things in over 13 pages of documentation and have now made an application available to keep up with new regulatory requirements as they continue following AMLD5 rulings.
CySEC on Cryptocurrencies
Chairperson of CySEC, Demetra Kalogerou agrees with the crypto enthusiasts on the inherent risks Crypto Assets pose for investor protection. “I hope this is a wake-up call to all investors who have been blinded by their love for crypto tokens and technologies. The truth remains that there are still many questions left unanswered about how these assets will evolve in time.”
Virtual currencies are highly risky and speculative, and investors must be alert at the possibility of losing all their money. They come in many forms but most remain unregulated throughout Europe.
Bitcoin, for example, is a highly volatile market that can be challenging to navigate. Investors should have an understanding of the risks associated with crypto assets before they purchase them or hold on to these at any given time- especially since regulation is sparse and unclear in many countries such as Cyprus.
She adds, “Furthermore, the amendment of Cyprus’s AML legislation to include crypto-asset businesses is a very important first step. I have no doubt that this will result in increased scrutiny and compliance procedures being adopted by EU member states for all new ICOs and exchanges operating within their borders.”