It also obliges crypto firms already registered with other European countries to register with the regulator.
Cyprus’s finance ministry is planning to amend the existing Prevention and Suppression of Money Laundering Law. The ministry has presented its set of amendments to the Parliamentary Committee on Legal Affairs. The amendments require that every service provider dealing with crypto assets must register with the country’s financial regulator, the Cyprus Securities and Exchange Commission .
In case of violation, the penalties range from fines of up to €350,000 to imprisonment of up to five years or a combination of both.The Cyprus administration consulted the Cyprus Bar Association which voiced its concerns about the law’s scope. It specifically questioned the requirement for crypto firms already registered in other EU states to also register in Cyprus.