CySEC Issues a New Directive for the Registration of Crypto Providers

The Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) issued on Friday a directive about the registration and operating conditions of providers of services related to Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term. 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.

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.”