{"id":380941,"date":"2021-12-14T17:39:25","date_gmt":"2021-12-14T14:39:25","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cyprus-finance-ministry-recommends-capacity-building-for-crypto\/"},"modified":"2021-12-14T17:39:25","modified_gmt":"2021-12-14T14:39:25","slug":"cyprus-finance-ministry-recommends-capacity-building-for-crypto","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cyprus-finance-ministry-recommends-capacity-building-for-crypto\/","title":{"rendered":"# Cyprus\u2019 finance ministry recommends \u2018capacity building\u2019 for crypto"},"content":{"rendered":"

“# Cyprus\u2019 finance ministry recommends \u2018capacity building\u2019 for crypto <\/strong>”
\n<\/p>\n

Cyprus is moving to regulate the cryptocurrency industry, with the country\u2019s finance ministry releasing a national risk assessment on crypto.<\/p>\n

Published<\/a> on Monday, the official documentation\u00a0provides<\/a> a risk assessment for the Republic of Cyprus regarding money laundering risks related to virtual asset activities and virtual asset service providers (VASPs).<\/p>\n

The Ministry of Finance of Cyprus stressed that there is a \u201climited direct understanding or experience\u201d regarding money laundering risks of crypto in the country.<\/p>\n

However, authorities like the Cyprus Securities and Exchange Commission (CySEC) and local enforcement authorities have demonstrated a \u201csophisticated level of understanding of the sector,\u201d the statement notes. The authorities should further explore the market and receive \u201cin-depth training on these issues\u201d to enhance their skills, the ministry stated.<\/p>\n

The ministry also recommended that local financial companies \u201cadopt written policies and procedures to comply\u201d with the wire transfer rule for virtual currencies. In the meantime, authorities should start to maintain and share data that is specific to virtual currencies and VASPs, the ministry said, adding:<\/p>\n

\u201cAlthough activity levels now are believed to be negligible, this will enable an evidence-based baseline as activities increase, promoting earlier detection of risks or changes to risk levels.\u201d<\/p>\n

The authority noted that Cyprus should actively collaborate with other jurisdictions experienced in the crypto industry in order to learn from these relationships and identify best practices. <\/p>\n

\u201cSuch international cooperation could be an important channel for Cyprus to strengthen and accelerate its capacity building for the VA\/VASP sector,\u201d the ministry wrote.<\/p>\n

Related: <\/em><\/strong>Israel reportedly adopts new AML rules for crypto<\/em><\/strong><\/p>\n

One of the world\u2019s most uncertain countries in terms of cryptocurrency regulation, Cyprus has been moving to adopt crypto-related regulations this year. In September, CySEC reportedly disclosed<\/a> new details of crypto regulation policies, planning to increase cryptocurrencies by integrating the European Union\u2019s Anti-Money Laundering regulations into Cypriot law.<\/p>\n

The Cypriot crypto ecosystem is associated with significant uncertainty as some major financial institutions, including the Bank of Cyprus, were allegedly blocking<\/a> Bitcoin (BTC)-related transactions this year, according to reports<\/a> on social media<\/a>.<\/p>\n