The Cyprus Securities and Exchange Commission (CySEC) issued on Friday a directive about the registration and operating conditions of providers of services related to cryptocurrencies. According to the guidelines, published only in the Greek language, the watchdog detailed a series of procedures to follow to comply with the recent transposition of AMLD5 measures taken in the European Union (EU) to combat Anti-Money Laundering and Counter-Terrorist Financing across the bloc.
CySEC fees for registering these providers who want to apply before the watchdog for authorization under the framework would be EUR 10,000, and renewal fees are EUR 5,000. According to the board’s composition, it should be a minimum of four members: two executives and two non-executives. Moreover, among the registration conditions, companies should comply with some requirements such as good reputation, appropriate policies, systems and procedures, relevant security policies and remuneration requirements specified by the CySEC.
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The document has over 13 pages, and it is expected that the Cypriot financial watchdog will issue a policy statement very soon clarifying other matters. Additionally, there is a CySEC application file available with the updated regulatory requirements to follow the AMLD5 rulings.
CySEC and Cryptos
Recently, during an interview with Finance Magnates, Demetra Kalogerou, Chair of CySEC, commented on the watchdog’s stance on the crypto industry: “CySEC shares ESMA’s position on the inherent risks the Crypto Assets pose for investor protection. Some crypto assets, including so-called virtual currencies such as Bitcoin, are highly risky and speculative, and investors must be alert to the high risks of buying and/or holding these instruments, including the possibility of losing all their money. Crypto assets come in many forms but the majority of them remain unregulated in the EU including Cyprus.”
Furthermore, she praised that the incorporation of crypto-asset businesses under the scope of the EU AML legislation under the amended 5th AML Law in Cyprus “is a very important first step.”