Cyprus, with its sunny climate, beautiful beaches and rich heritage, is undoubtedly an attractive destination for many. But did you know that it’s also a burgeoning hub for cryptocurrency? In this guide, we’ll delve into the world of cryptocurrency in Cyprus to uncover how this country is establishing itself as a front-runner in the realm of digital currencies.
Cryptocurrency: A brief overview
Cryptocurrency is a digital or virtual currency that uses cryptography for security. Unlike traditional currencies, it’s not issued by a central bank or government. Instead, it operates on a decentralised network called a blockchain. This technology ensures transparency, security and immutability.
Regulatory landscape in Cyprus
Cyprus has taken a progressive stance towards cryptocurrency. While it doesn’t have specific laws solely for cryptocurrencies, it leverages existing financial services legislation to regulate them. This approach provides a framework for businesses operating in the crypto space.
The Cyprus Securities and Exchange Commission (CySEC) is the primary regulator overseeing financial services in Cyprus. The CySEC has formulated a regulatory framework on cryptocurrencies that provides clear guidelines and promotes a healthy environment for trading crypto in this country. This in turn helps to encourage innovation and attract investors.
Capital requirements
If you’re considering starting a cryptocurrency-related business in Cyprus, you’ll need to meet certain capital requirements. These requirements will vary depending on the specific type of business you’re planning to set up.
There are two types of cryptocurrency funds in Cyprus: AIFUNP (Alternative Investment Fund with an Unlimited Number of Persons) and AIFLNP (AIFs with a Limited Number of Persons). Such internally managed funds must adhere to minimum capital requirements stipulated by CySEC.
Ahead of setting up your business, it is essential to consult with a local financial advisor or lawyer to understand the exact capital requirements for your future venture.
Buying, selling and storing your crypto
Several cryptocurrency exchanges operate in Cyprus, offering various digital assets and payment methods. The most widely accepted cryptocurrencies in this country include Bitcoin, Ethereum, Ripple and Litecoin, as well as some homegrown crypto exchanges.
If you are interested in buying, selling and storing your cryptocurrency assets, you should opt to use a trustworthy cryptocurrency exchange like Tradu. These platforms allow you to trade various cryptocurrencies and fiat currencies in a safe and secure environment.
When choosing an exchange, it’s essential to consider factors such as security, fees and the range of cryptocurrencies offered. Additionally, you need to give careful consideration as to how you would prefer to store your cryptocurrency in a digital wallet. There are different types of wallets, including hot wallets (connected to the internet) and cold wallets (offline).
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