The financial services sector has been amongst the first to witness these dramatic changes as FinTech companies have increasingly transformed the existing landscape. In particular, the recent development of blockchain technology in a lightly regulated environment has driven the expansion of the cryptoassets market and has widened the scope for aspiring market entrants into the decentralised finance space. The cryptoasset market, coupled with the potential new applications of blockchain technology to other industries, has created an entirely new digital ecosystem that has generated a suite of complex technical and legal issues that regulators and market operators have never before had to grapple with.
Cyprus has transposed the provisions of the 5th AML Directive requiring EU Member States to ensure that virtual asset exchange service providers and custodian wallet providers are registered and has introduced a regulatory regime for such providers to be supervised by the Cyprus Securities and Exchange Commission. A draft bill titled “the Distributed Technology Law of 2021” aspires to provide legal certainty regarding smart contracts and aims to facilitate the application of blockchain technology. We are also anticipating the implementation of the Markets in Crypto-Assets Regulation which will be applicable throughout the EU.
Our Blockchain & Cryptoassets team brings together legal expertise from multiple disciplines across our firm, including our Financial Services, Intellectual Property, Data Protection, Corporate and Commercial practices. We can provide value-added legal advice and support, both to start-ups and to existing businesses aiming to stay one step ahead of the curve.
Our team can assist you with issues specific to cryptoassets and blockchain technology matters such as advice on AML/KYC and GDPR issues, legal advice regarding Initial Coin Offerings and Security Token Offerings for issuers as well as regulatory licensing advice for Crypto-Asset Service Providers. We are also able to offer value-added legal advice both to start-ups, or to existing business, that are seeking to explore setting up in Cyprus regarding:
To talk to a member of the Blockchain & Cryptoassets team please contact: +357 22 777000