Cyprus Authorities Support Adoption Of EU Directive On Crypto Sphere
The Cyprus Securities and Exchange Commission (CySEC) supports the earliest possible introduction of the fifth EU Directive on AML into the laws of the country, and seeks to regulate the crypto sphere pursuant to its provisions, the press service of the organization reports.
The Fifth EU Directive was adopted in July 2018. It established the legal framework for financial regulatory organizations of EU countries to monitor the crypto industry. It also aims to control digital currency service providers to prevent money laundering and terrorism funding.
The EU legal document expands the scope for oversight of crypto sphere companies. It mentions more serious requirements for transparency of procedures with regard to anonymous payments, which are carried out through crypto exchanges. During 2019, EU countries should include the provisions of this document in their national regulations.
According to the CySEC innovation unit, many crypto institutions operate outside the existing laws.
Cyprus regulators want to extend the scope of the Directive at the local level and to cover such activities as cryptocurrency exchange and transfer of digital assets. Such a proposal is based on the desire to preserve the integrity of the market and eliminate the risks that exist in relation to investors.
As previously reported, the Irish government approved a bill developed within the framework of the Fifth EU AML Directive in early January 2019.