Cyprus Becomes EU’s Favorite Crypto Base

Earlier this month, British digital bank Revolut was authorized by the Cyprus Securities and Exchange Commission (CYSEC) to offer crypto services in the European Economic Area (EEA), which includes Iceland, Liechtenstein and Norway.

Continue reading: Revolut Wins Crypto Approval Across Europe

The British FinTech unicorn, which started making cryptocurrency trading easier for its customers in 2017, upped the ante this month with the addition of 22 new tokens now available for its customers in the European Union ( EU) and the UK.

More on this: Revolut adds new crypto in the offer to become a super application

The news makes Revolut the latest in a series of crypto-services companies that have opted to route their European operations through a Cypriot license in a bid to maintain their regional footprint and take advantage of the country’s passporting rules. EU.

In March, crypto exchange platform FTX launched in Europe through a Cyprus-incorporated investment firm that holds an EEA passport, while Israeli multinational trading company multi-asset social and investment fund, eToro, has been registered in the country since 2010.

Meanwhile, Crypto.com, CMC Markets, and BitPanda also obtained licenses from CYSEC.

Sophisticated and robust regulatory regime

With the European Crypto Asset Markets (MiCA) legislation coming into effect in 2024, any business wishing to offer services related to crypto assets will need to do so through an entity registered with a regulator. based in the EU as CYSEC.

The European island nation, a FinTech favorite for its crypto-friendly regulatory regime, has proposed the “Distributed Ledger Technology Bill” which will clarify the legal status of crypto assets and create a clear regulatory framework for companies offering crypto services.

In comments to Blockworks on the planned act, Kyriacos Kokkinos, Cypriot Deputy Minister to the President for Research, Innovation and Digital Policy, said: “By focusing on the tech sector, especially on technologies new and disruptive technologies, such as fintech and blockchain, we aim to build a new pillar of the economy that will ensure economic competitiveness and social prosperity.

And Revolut seems to see that potential. According to Altfi, a spokesperson for the company said that “by establishing a hub for our crypto operations in the EU, we recognize that CYSEC has deep knowledge of crypto and its efforts to be a leader in the regulation of cryptography”.

The neobank further said it chose Cyprus after a “thorough investigation of all EU countries“, with CYSEC being chosen because of its “sophisticated and robust regulatory regime, as well as the strength of the banking industry. existing cryptography in Cyprus”.

Elsewhere, other European countries have also passed laws that require crypto businesses to register with national authorities to offer their services.

Since May, for example, crypto platforms wishing to do business in Italy must be listed on a national registry administered by the Organismo Agenti e Mediatori (OAM) which is specifically dedicated to crypto asset service providers and to crypto wallets.

Further reading: How Payment Methods and Regulatory Regimes Shape the Italian FinTech Ecosystem

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