Cyprus has prepared its own regulations governing cryptocurrency assets and is likely to adopt them before Europe finalizes a common regulatory framework. Such information was provided by a local government official. He added that authorities in Nicosia welcome the “cautious” use of cryptocurrencies.
Cyprus has an “enviable position” in the EU when it comes to innovation, with the second best result last year, according to the European Innovation Scoreboard.
Commenting on the future of digital assets in Cyprus, including cryptocurrencies, Deputy Minister for Research, Innovation and Digital Policy, Kyriacos Kokkinos, has drawn a fine line between the adoption of innovation and the need to comply with regulations. Quoted by English-language media, Kokkinos said:
I can say that Cyprus welcomes the use of digital assets, but we still have to be very careful and comply not only with the existing rules, but also with the fear of the absence of any legislation.
The government representative gave the example of Malta, where the regulatory framework has attracted many companies and investors, but has also led to increased scrutiny and investigation of some of these entities and banking institutions.
The deputy minister then revealed that the Cypriot government has already prepared a “very attractive law on cryptocurrency assets.” The legislation has been published and interested parties can review it, he said. The executive also commissioned a New York-based company to help the island nation implement the regulations.