Harris Georgiades, the finance minister of Cyprus has made it known that the blockchain regulation framework for the country will be available this year and then stated that blockchain technology is a new technological revolution closely related to the internet.
A Plan to Maintain Digital Innovation in Cyprus
The speaker of the house, Demetris Syllouris praised the abilities of the technology saying that:
“Full implementation of this technology across the public and private sector is expected to radically change the structures of modern societies, the way they are organised and their operation.”
While giving his speech, Syllouris noted that the national strategy will help maintain digital innovation in Cyprus, make available the framework which is required, and a plan of action for the implementation of distributed ledger technology (DLT) in several industries while attending to problems arising due to risks and threats.
Pilot programs available on the national blockchain are reportedly going to involve the Department of Customs and Excise, the Tax Department and the National Betting Authority, and the DAnti-ment of Land and Surveys.
Also, the Cyprus Securities and Exchange Commission (CySEC) has suggested the reversal of the European Union (EU)’s Fifth Anti-Money Laundering (AML) Directive (AMLD5) which introduced local regulation of digital currencies under its provisions into national law.
The agency further supports the formalization of the AMLD5 into law and thus suggested the introduction of many additional areas of activities related to crypto in Cyprus under AML/CFT obligations.
The new activities which are not included in the provisions of AMLD5 include:
“a) exchange between crypto asset, b) transfer of virtual assets and c) participation in and provision of financial services related to an issuer offer and/or sale of a crypto asset.”
Meanwhile, Cyprus was one of the seven EU states that co-signed a declaration requesting for assistance in the promotion of DLT use in the region in December 2018.