cryptovibes.com
The Cyprus Securities and Exchange Commission (CySEC) has released a new set of guidelines crypto providers are required to follow to continue doing business in the country. The guidelines, which were released on Friday, aim to follow the AMLD5 rulings by the EU.
The crypto service providers must meet certain requirements
According to CySEC, the providers will follow specified processes when complying with the recent transfer of AMLD5 set up by the EU to fight Counter-terrorism financing and money laundering activities.
Under the guideline, the providers are required to pay EUR 10,000 when applying for authorization to continue providing crypto-related services. Also, the providers upon registration should consist of a minimum of four board members.
Additionally, the companies must meet certain requirements, which include meeting the compensation standards set by the commission. Other requirements include having a strong security policy in place, having a good reputation, and having suitable processes and systems in place.
The new rule is written only in Greek and is 13 pages long. Also, CySEC is expected to provide more information that may address any issues from the new regulation and other areas. The watchdog has already released the application form for intending providers who meet all the requirements specified in the document.
An improved regulatory framework
Chairwoman of CySEC, Demetra Kalogerou, commented recently on CySEC’s view about crypto-businesses in the country
“CySEC supports ESMA’s perspective on the inherent dangers Crypto Assets represent for investor protection,” she stated.
She stressed the need to provide more protection for investors who could lose all their invested money in the highly volatile market. Apart from their propensity to be used for fraudulent transactions, crypto assets are highly volatile and speculative. Kalogerou says that investors need to be highly alert when buying or holding these assets.
She is advocating for more policies and regulations that will reduce the propensity of fraud in the industry using cryptocurrencies as facilitators.
Kalogerou also wants a complete integration of the EU AML law into Cyprus’s 5th AML law, calling it a “very important first step” towards an improved regulatory framework.