NICOSIA – Cyprus, one of the European Union’s favored countries for users of cryptocurrency, plans to tighten its anti-money laundering measures to meet international standards and prevent the misuse of digital money.
The Cyprus Mail said that the Finance Ministry intends to amend the current regulations that also deal with Terrorist Financing and sent a package of legislation to the Parliament.
It seeks to align Cyprus with standards of the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) set by the Financial Action Task Force (FATF) and Committee of Experts on the Evaluation of Anti-money Laundering Measures and the Financing of Terrorism (MONEYVAL.)
Under the amendments, every service provider working with crypto assets must register with the financial regulator, the Cyprus Securities and Exchange Commission (CySEC) said CoinTelegraph.
Violators face fines up to 350,000 euros ($371,146) and imprisonment of up to five years or a combination of both, the amendments drawing some concerns from the Cyprus Bar Association.
That was especially over the obligation for crypto service providers with acting licenses from other European countries to register with the CySEC. The provision was included in the amendments by the agency.