Cyprus will tighten the punishment for crypto companies for the lack of registration – Bits Media

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Кипр ужесточит наказание для криптокомпаний за отсутствие регистрации - Bits Media

The Ministry of Finance of Cyprus intends to amend the current laws on the fight against money laundering. Officials demand, So that each supplier of cryptocurrency products and services is obliged to register with the local regulator.

Securities Commission and bourge the Cyprus (Cysec) In case of non -compliance with the requirement, it is going to write fines to companies before 350 000 euro. And also, If you believe the plans of the Ministry of Finance, company management may face imprisonment for up to five years.

The amendment package has already been submitted by the Parliamentary Committee on Legal Affairs. The government believes, that thanks to the new Cyprus rules will meet the international standards for the development group of financial measures to launder money (FATF), as well as the recommendations of the Committee of Experts of the Council of Europe on the assessment of money laundering measures (Moneyval). 

The most stringent punishments for non -compliance with registration requirements and work without a license are now established in Malta: violators can receive a prison term of up to six years and a fine before 15 million.

The Association of Cyprus Lawyers also took part in the discussion of amendments, Having made a reservation: Cryptocurrency companies with existing licenses from the European Union are still obliged to register in Cyprus. The Association recommended to include the principle of Travel Rule in the law, concerning the exchange of information about customers, since now this principle is not used in the legislative framework of Cyprus.

In September, the Israeli Etoro trading platform registered in Cysec as a supplier of crypto services, Having received the right to provide them throughout the EU. Previously, In July, The largest cryptocurrency exchange of Binance announced the departure from the Cyprus market against the backdrop of a lawsuit by the US Securities and Exchange Commission (SEC).