Cyprus has drafted its own legislation to handle crypto assets and Europe is likely to adopt it before a similar regulatory guideline is finalized, a government official said.
This was announced by Kyriacos Kokkinos, Deputy Minister of Research, Innovation and Digital Policy, during a Larnaca meeting with the local fintech community.
The meeting was organized by Kendris, a Swiss consulting business that has offices in various countries, including Cyprus.
Kokinos commented that Cyprus’ concentration on research led to success in that discipline, but not without the country having learned some lessons down the road.
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Legislation governing the handling of crypto assets has been drafted in Cyprus (Entrepreneur).
Cyprus supports crypto usage
The Cyprus Mail reported on Thursday that when Kokinos commented on the future of digital assets in Cyprus, including cryptocurrencies, they tread a strict line between welcoming innovation and abiding by the law.
Kokinos, quoted by an English-language daily newspaper, elaborated:
“I can confirm that Cyprus supports the use of digital and crypto assets, but we must be extremely cautious and respect not only existing legislation, but also the absence of sanctions.”
Since the island nation was a member of the European Union, Kokinos underscored the need for discretion. He observed that it did not care whether it aligned with Europe or not.
Instead, he said the country’s choice was whether to wait for the ECB to establish its own regulatory framework or proceed independently.
“My answer is that we will go it alone, respecting the rules,” he said.
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Evaluation of the functions of cryptocurrency
The law has been published and interested parties are encouraged to evaluate it, as disclosed by the deputy minister. The government of Cyprus also invited a New York-based company to assist with the application of the law.
With regard to the banking industry as a whole, Kokinos had a more pessimistic picture, lamenting the very conservative approach adopted by commercial banks after the 2013 financial crisis.
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“Banks should be more friendly to companies and individuals wishing to do business in Cyprus,” he added, noting that while they have improved over the past 18 months, there is still room for improvement.
Two representatives from Invest Cyprus, CEO Jorge Campanelas and Vice-Chairman Spiros Vasiliou also spoke on the occasion.
Meanwhile, the financial heads of the G7 have urged nations to adopt wider regulation of cryptocurrencies. According to Reuters, the team released a draft statement to this effect during a meeting in Koenigswinter, near Bonn (Germany).