Cyprus Is Drafting Cryptocurrency Rules And May Implement Them Ahead Of EU Regulations

• The minister walked a delicate line between welcoming innovation and adhering to legislation while commenting on the future of digital assets in Cyprus, including cryptocurrency.

• The deputy minister recognised that there are certain obstacles, such as differences between the government and the Cyprus Central Bank (CBC).

• The executive branch has hired a New York-based consultancy to help the island nation implement the regulations.

According to a government official, Cyprus has created its own law to regulate crypto assets and is likely to adopt it before Europe completes a uniform regulatory framework. He expressed that the experts in Nicosia support the reasonable utilization of digital currency.

Cyprus Will Introduce A Attractive Cryptocurrency Bill

According to the European Innovation Scoreboard, Cyprus has an enviable position in the EU when it comes to innovation, with the second-best progress last year, according to the country’s Deputy Minister for Research, Innovation, and Digital Policy Kyriacos Kokkinos. Digital assets, entrepreneurship, and financial technology were all discussed at the event.

The minister walked a delicate line between welcoming innovation and adhering to legislation while commenting on the future of digital assets in Cyprus, including cryptocurrency, the Cyprus Mail reported on Thursday. Kokkinos explained as cited by the English-language day to day paper:

I can let you know that Cyprus embraces the utilization of advanced and crypto resources, however we should in any case practice mindfulness and regard existing limitations, yet additionally the scarcity in that department.

Malta’s regulatory environment attracted numerous crypto startups and investors, but it also led to heightened scrutiny and probes into some of its enterprises and banking institutions, according to the government representative. Because we are a member state, we must be mindful of the European Union’s frameworks, Kokkinos said.

The deputy minister went on to say that the Cypriot government has already written a very appealing bill on crypto assets. He noticed that the regulation hosts been distributed and that intrigued gatherings can assess it. Likewise, the presidential branch has employed a New York-based consultancy to assist the island country with carrying out the guidelines.

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The Government And The Cyprus Central Bank

Our problem isn’t being in line with the EU; it’s deciding whether to wait for the ECB to finish their own regulatory framework or go it alone, with the former scenario posing the risk of overregulation, Kyriacos Kokkinos explained. My response is that we will go it alone while adhering to the rules, he continued.

The deputy minister recognized that there are certain obstacles, such as differences between the government and the Cyprus Central Bank (CBC). We must remember that the CBC is controlled by the ECB, and central banks tend to be conservative, so our role is to question them through the debates we have with them, he told the audience.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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