Cyprus is moving to regulate the cryptocurrency industry, with the country’s finance ministry releasing a national risk assessment on crypto.
The official documentation delivers a risk assessment for the Republic of Cyprus concerning money laundering risks related to virtual asset activities and virtual asset service providers.
The Ministry of Finance of Cyprus stressed that there is a “limited direct understanding or experience” regarding money laundering risks of crypto in the country.
Authorities such as the Cyprus Securities and Exchange Commission and local enforcement authorities have proved a “sophisticated level of understanding of the sector,” the statement notes. The authorities should further explore the market and receive “in-depth training on these issues” to enhance their skills, the ministry stated.
The ministry also suggested that local financial companies “embrace written policies and procedures to comply” with the wire transfer rule for virtual currencies. In the meantime, authorities should start to maintain and share data that is specific to virtual currencies and VASPs, the ministry said.
The authority noted that Cyprus should actively collaborate with other jurisdictions experienced in the crypto industry in order to learn from these relationships and recognize best practices.
