Cyprus is set to introduce stringent penalties for unregulated cryptocurrency service providers (CSPs), according to the Cyprus Mail. The government has submitted a legislative amendment to the “Prevention and Suppression of Money Laundering Law,” aiming to align the country with international anti-money laundering (AML) and combating the financing of terrorism (CFT) standards. The amendment was presented to the Parliamentary Committee on Legal Affairs on October 10, 2023.
The proposed amendments stipulate that all CSPs dealing with crypto assets must register with the Cyprus Securities and Exchange Commission (CySEC). Failure to comply will result in penalties ranging from fines of up to €350,000 to imprisonment for up to five years, or a combination of both. This move reflects Cyprus’s commitment to minimizing risks associated with money laundering and terrorist financing.
The Cyprus Bar Association has expressed reservations…
