The Cyprus Securities and Exchange Commission (CySEC) released a new directive on Friday regarding the crypto provider registration and operating requirements of providers of cryptocurrencies-related services.
According to the instructions, which were only released in Greek, the watchdog specified a set of processes to follow to comply with the recent transfer of AMLD5 measures established in the European Union (EU) to combat Anti-Money Laundering and Counter-Terrorist Financing across the bloc.
The CySEC registration cost for these providers who want to apply to the watchdog for authorization under the framework is EUR 10,000, and the renewal price is EUR 50,000. The board should include a minimum of four members - two executives and two non-executives.
Furthermore, among the registration prerequisites, firms must meet certain requirements such as having a good reputation, having suitable policies, systems, and processes, having applicable security policies, and meeting the compensation standards established by the CySEC, among others.
The paper is almost 13 pages long, and it is believed that the Cypriot financial watchdog would release a policy statement addressing additional problems very shortly. A CySEC application file with the new regulatory requirements to comply with the AMLD5 judgments is also available.
Demetra Kalogerou, Chairwoman of CySEC, recently remarked on the watchdog's stance on the crypto business during an interview with Finance Magnates: "CySEC supports ESMA's perspective on the inherent dangers Crypto Assets represent for investor protection."
Some crypto assets, such as so-called virtual currencies like Bitcoin, are very hazardous and speculative, and investors must be aware of the significant dangers of purchasing and/or holding these instruments, including the chance of losing all of their money.
Crypto assets exist in a variety of formats, but the vast majority of them are uncontrolled in the EU, including Cyprus.”
She also welcomed the integration of crypto-asset firms into the scope of EU AML law under the scope of Cyprus's revised 5th AML Law as a "very important first step."