Cyprus Ministry of Finance recommends “capacity building” for encryption

Cyprus is beginning to regulate the cryptocurrency industry, and the Ministry of Finance of the country has issued a country risk assessment on cryptocurrencies.

Published Monday, official document supply The Republic of Cyprus’s risk assessment on money laundering risks associated with virtual asset activities and virtual asset service providers (VASP).

The Cyprus Ministry of Finance emphasized that the country’s cryptocurrency money laundering risks have “direct knowledge or limited experience”.

However, the statement stated that authorities such as the Cyprus Securities and Exchange Commission (CySEC) and local law enforcement agencies have shown “a deep understanding of the industry.” The ministry stated that the authorities should further explore the market and receive “in-depth training on these issues” to improve their skills.

The ministry also recommended that local financial companies “use written policies and procedures to comply with” virtual currency wire transfer rules. At the same time, the ministry stated that the authorities should begin to maintain and share data specific to virtual currencies and VASP, adding:

“Although people now think that the level of activity is negligible, as activity increases, this will achieve an evidence-based baseline and facilitate early detection of risks or changes in risk levels.”

The authorities pointed out that Cyprus should actively cooperate with other jurisdictions with experience in the encryption industry in order to learn from these relationships and determine best practices.

“This kind of international cooperation may be an important channel for Cyprus to strengthen and accelerate the capacity building of its VA/VASP sector,” the ministry wrote.

related: According to reports, Israel adopts new cryptocurrency anti-money laundering rules

As one of the countries with the most uncertain cryptocurrency regulation in the world, Cyprus has been adopting encryption-related regulations this year. In September, it was reported that CySEC Disclosure The new details of the encryption regulatory policy, it is planned to increase the encryption currency by incorporating the EU’s anti-money laundering regulations into Cyprus law.

The Cyprus crypto ecosystem is associated with significant uncertainty, as some major financial institutions, including the Bank of Cyprus, are said to be block Bitcoin (Bitcoin) Related transactions, according to Report On social media.