Cyprus, one of the most welcoming cryptocurrency countries in Europe, is thinking about tightening up its rules for the sector. The Cyprus Mail reported on October 10 that the local Ministry of Finance intends to amend the current law that addresses detecting and combating money laundering. The Parliamentary Committee in charge of Cyprus’ legal issues has received a list of proposed changes from the government.
Cyprus often complies with global standards for fighting the Financial Action Task Force (FATF) and anti-money laundering. Companies must register with the Cyprus Securities and Exchange Commission (CySEC) in accordance with new regulations that the government has put into place. Penalties for breaking these rules might include up to €350,000 in fines, a five-year maximum sentence in jail, or a combination of the two.
The Cyprus Bar Association has expressed concern over a certain demand made by CySEC. Concerns have been expressed about the need that even bitcoin businesses with licenses from other European nations must register with CySEC.
The biggest cryptocurrency exchange in the world, Binance, made the decision to quit the Cyprus market in July as a result of mounting regulatory pressure. They claimed they intended to concentrate on the bigger markets in the European Union.
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