The Cypriot financial regulator CySEC (Cyprus Securities and Exchange Commission) released a newly drafted policy regarding crypto-asset service providers (CASPs) that will cover the specific operations of these entities as well as their registration process.
According to this new policy, cryptocurrency assets will either qualify as Electronic Money under the Electronic Money Law or as financial instruments under the Investment Services and Activities and Regulated Markets Law. The final qualification will end on the nature of the business.
What is more, according to the same policy, the crypto-based assets can be a digital rep of a value not issued by a central bank, nor by any public authority.
CASPs will also have to cooperate with the latest AML and CFT rules. This includes:
• operational requirements
• organizational requirements
• measures in due diligence
• economic profiling of customers
• organizations of funds and their original source
This move by the regulator actually pushes the istributed ledger technology (DLT) into the mainstream, although the regulator did point out the risks involved in it, for example, tech adoption and standardization, governance predicaments, scalability, abiding by existing regulations, and others.
Previously, Malta and Gibraltar issued similar regulations.
Source
Proper regulation is always a good thing in my book, so I am glad CySEC did this.
According to this new policy, cryptocurrency assets will either qualify as Electronic Money under the Electronic Money Law or as financial instruments under the Investment Services and Activities and Regulated Markets Law. The final qualification will end on the nature of the business.
What is more, according to the same policy, the crypto-based assets can be a digital rep of a value not issued by a central bank, nor by any public authority.
CASPs will also have to cooperate with the latest AML and CFT rules. This includes:
• operational requirements
• organizational requirements
• measures in due diligence
• economic profiling of customers
• organizations of funds and their original source
This move by the regulator actually pushes the istributed ledger technology (DLT) into the mainstream, although the regulator did point out the risks involved in it, for example, tech adoption and standardization, governance predicaments, scalability, abiding by existing regulations, and others.
Previously, Malta and Gibraltar issued similar regulations.
Source
Proper regulation is always a good thing in my book, so I am glad CySEC did this.
