Cyprus Securities and Exchange Commission (CySEC) Publishes First Crypto Assets Regulations
On November 25, 2020, the Cyprus Securities and Exchange Commission (CySEC) published Circular no C417 providing guidance to Cyprus Investment Firms (CIFs) on issues relating to crypto assets.
The Circular is intending to regulate the treatment of crypto assets and financial instruments relating to crypto assets, as well as, proper risk management procedures to be put in place by CIFs.
The Circular clarifies what treatments should be used by CIFs when calculating their own funds and capital adequacy ratio, as well as compliance with the internal capital adequacy assessment process and relevant disclosures.
Finally, CIFs, that trade in crypto assets, and/or in financial instruments relating to crypto assets, are urged to revisit their risk management procedures and strategies to make sure that all risks associated with this product are duly taken into consideration. CIFs should also examine taking mitigating measures against operational, cybersecurity and reputational risks.
For further information and clarifications related to the above regulations or anything related to Financial Services Law please contact us via email at email@example.com or via telephone +357 22262108.