The Southern Cyprus Securities and Exchange Commission (CySEC) detailed the rules that crypto money companies that will operate in the country must comply with in the directive published on Monday.
Crypto-asset service providers are required to comply with know-your-customer (KYC) processes, report suspicious transactions, create an economic profile of customers, identify the source of funds in their accounts, and monitor transactions.
Cryptocurrency companies subject to AML/CFT laws in Southern Cyprus will be obliged to comply with the provisions of the directive published yesterday.
In the directive, the competencies that the managers of the service providers should have, the audits that should be done on the platform, the records that should be kept and the internal mechanisms that should be established were mentioned.
Crypto-asset service providers only collect a certain portion of their customers’ funds. in hot wallets and will be obliged to conduct an investigation on the organization that provides the hot wallet service.
cold wallet Companies using it will be expected to conduct regular risk assessments and ensure that only certain people can access the wallet.
Demetra Kalogerou, President of CySEC, “Thanks to the communication we established with crypto businesses to support innovative businesses, we have conveyed to them what we expect from the stakeholders in this market, and we have ensured that the legal framework in Cyprus reduces the risks in this sector by keeping up with the pace of the sector.” said.
The regulator of Southern Cyprus wants organizations that are already operating in the crypto money market or are planning to show in the future to apply for an operating permit in the near future.