The European countries and the US are currently weighing the role of cryptocurrencies and their role in aiding Russian sanction evasion. Amidst this development, Cyprus aims to become a fully compliant global crypto hub using its new bill.
Cyprus is currently vetting a cryptocurrency” umbrella” bill that will help establish the Mediterranean nation as the premier destination for digital asset companies and innovators. The Distributed Ledger Technology bill and the legislation were published for public comment in 2021 and are undergoing legal vetting.
The Crypto “Umbrella” Bill
This legislation bill will focus on clarifying policies that surround the digital asset industry and will amend existing related laws such as tax codes and property laws.
“What we see as an opportunity for Cyprus and what we’re working on is to develop a new pillar of our economy,” Kyriacos Kokkinos, the Deputy Minister of Cyprus, said. “Through focusing on the technology sector, especially on new and disruptive technologies, like fintech and blockchain, we aim to build a new pillar of the economy that will give economic competitiveness and social prosperity.”
He further added that the key provisions in the bill would include clarity about taxation and token issuance policies, plus a measure to enable Cyprus Securities and Exchange Commission to issue secondary legislation.
Because we are members of the European Union, we will have to be very careful,” he said. “We don’t want to run ahead and regulate something, then the European Union comes forward in a year with a different point of view.”
He further added, “We are fully aware of our small size, so the name of the game is collaboration with our neighboring countries, especially Greece, Israel and other geographies in the Middle East so that we can complement each other,” Kokkinos said.
As the world grapples with the best response to Russia’s invasion of Ukraine, the cryptocurrency has been elemental in changing the course of the outcome. While other countries still weigh the role of cryptocurrencies in the present situation, Cyprus is being fully compliant.