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ARTICLE · 29 MARCH 2021

Circular No. C417 On Crypto-Asset Investment: Our Verdict

CySEC has published circular C417, which is addressed to Cyprus Investment Firms, and contains guidance on investment in crypto-assets.

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CySEC has published circular C417, which is addressed to Cyprus Investment Firms, and contains guidance on investment in crypto-assets. Though undeniably significant, C417 does not constitute but guidance written in non-mandatory language, and may contribute to divergent crypto-asset regulation across the EU. Therefore, adequate regulation can only be achieved at EU level.

A first step in regulating crypto asset investment in Cyprus was taken by the Cyprus Securities and Exchange Commission (CySEC) on 25 November 2020, through publication of guidance under Circular no. C417 on 'Prudential treatment of crypto assets and enhancement of risk management procedures associated with crypto assets'. C417 is addressed to Cyprus Investment Firms (CIFs), and follows the findings of a report on crypto-assets published by the European Banking Authority (EBA) with advice for the European Commission.

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