Cyprus’ Finance Ministry has published a document that contains a risk assessment process on how to prevent and identify money laundering activities carried out by service providers in the virtual asset industry. The ministry reiterated there is little or no understanding of how money laundering through digital assets works in the country. But, financial regulators such as the law enforcement agencies and the nation’s S.E.C.
Highlights Of Some Of The Ministry’s Recommendations
The ministry suggested that the authorities expand their knowledge of this industry to help them understand how to tackle fraudulent financial transactions through crypto. Another recommendation was for local FinTech firms to “develop and implement policies that are in sync with ‘wire transfer policy’ for digital assets.” The ministry further suggested that authorities should start keeping a database of information about the digital asset industry, especially VASPs, and share such data when needed.
“The low level of activities is an opportunity to have a basis for measuring rising activity levels. Thus, making it possible to detect risks early and make appropriate changes where necessary.” The ministry remarked that the nation should partner with other countries with a standard-regulated digital asset industry.
Thus, they can learn how such nations regulate their crypto industry and pick out best practices that can be implemented in Cyprus’ crypto industry. The ministry said, “this collaboration represents an ideal way Cyprus can improve and enhance their capability in developing a well-regulated crypto sector.”
Cyprus’ Crypto Industry
This year marks the first time Cyprus is making moves to regulate its crypto industry. It has always been indifferent to regulating the industry in times past. Three months, Cyprus SEC issued a new report on how it plans to perform oversight functions on the nascent digital asset industry. Also, it incorporated a draft from the E.U.’s anti-money laundering policies into that report.
Before now, there has been lots of doubt regarding the regulation surrounding digital assets in Cyprus. Even social media reports indicate that some top banks were preventing any crypto-related transactions. It was yet unclear whether the banks acted according to the government’s instructions or their capacity.
A Top Ukrainian Bank Launches E-Hryvnia, Receives Government Support
A top Ukrainian bank (Tascom bank) has commenced a trial phase for the digital version of the country’s fiat currency (Hryvnia). However, Ukraine’s ministry of digital transformation (MDT) and the country’s apex bank will oversee the implementation of the Stellar-built national digital currency. One of Stellar’s top-level executives, Denelle Dixon, remarked that the pilot test is already in progress to pay employees of a government-owned agency at Diia.
A top-level executive with the MDT stated that this project is crucial in restructuring Ukraine’s payment settlement methods to conform with global standards. The e-Hryvnia is not the first Stellar-built project in Ukraine. The east European nation has been implementing its crypto-related projects on the Stellar network. Earlier in the year, the MDT and the Stellar development foundation collaborated on researching, developing, and issuing a national digital currency.
