The Changes Brought To The Virtual Currency Industry By The 5th AML Directive

On 23^rd February 2021, the 5^th AML Directive was implemented by the Republic of Cyprus into the national AML Law, bringing major amendments to the virtual currency industry. In the present article the most important changes of the amended Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 to 2021 (the “Law”) will be summarized.

For the first time, Crypto Assets are being defined as “a digital representation of value, which is not issued by a Central Bank or Public Authority or has their approval, is not necessarily linked to a legally circulating currency and does not have the legal status of currency or money, but is accepted by individuals as a transaction instrument or investment, which may be transferred, stored or distributed electronically and is not: (a) fiat currency; or (b) electronic money, or (c) financial instruments as defined in Part III of the First Annex to Investment Services”.