Cyprus Drafts Crypto Rules, May Introduce Them Before EU Regulations – Regulation Bitcoin News

According to a government official, Cyprus has already prepared legislation to regulate cryptocurrency assets. It is expected to adopt this law before Europe creates its common regulation framework. The authorities in Nicosia welcome the “careful” use of cryptocurrencies, he added.

Government of Cyprus to Submit ‘Attractive’ Crypto Bill

Cyprus has an “enviable position” in the EU when it comes to innovation, with the second-best progress last year, according to the European Innovation Scoreboard, the country’s Deputy Minister for Research, Innovation and Digital Policy Kyriacos Kokkinos stated at a meeting with the local fintech community. It was dedicated to financial technology, entrepreneurship and digital assets.

The minister commented on Cyprus’ future digital assets, which included cryptocurrencies. However, he had to tread a delicate line between innovation and following laws. Kokkinos, an English-language newspaper, elaborated on the statement.

While I can confirm that Cyprus supports the use and development of digital and crypto assets it is important to remember to also respect the existing regulations and any new regulations.

A government representative discussed Malta as an example. The regulatory framework that was created in Malta attracted many investors and crypto-companies, but it also led to more scrutiny of some banks and companies. “We have to be careful of the frameworks of the European Union since we are a member state,” Kokkinos emphasized.

The deputy minister then revealed that the Cyprus government has already drafted a “very attractive bill on crypto assets.” The legislation has been published and interested parties can review it, he pointed out. An American firm has been appointed by the executive power to aid the island nation in the application of regulations.

“Our challenge is not being aligned with the EU, it’s about the dilemma of whether to wait for the ECB to finalize their own regulatory framework or do we go alone on our own, with the former scenario also involving the possibility of that framework being overregulated,” Kyriacos Kokkinos remarked. “My answer is that we will go at it alone while respecting the rules,” he added.

While acknowledging that there are challenges, the deputy minister also acknowledged disagreements between government officials and the Central Bank of Cyprus. “We must remember that the CBC is subject to the ECB and central banks tend to be conservative, so our job is to challenge them through the debates we are having with them,” he told the audience at the event which took place in Larnaca.

What do you think Cyprus will do to implement crypto regulations in the European Union’s favor? Please leave your comments below.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.