Cyprus – famous for the presence of a large number of online trading brokers on its island thanks to favourable legislation that makes it attractive to financial intermediaries, with low fees and minimal rules – has taken a stance on crypto regulation.

Kyriacos Kokkinos, Deputy Minister for Research, Innovation and Digital Policy, said that Cyprus has drafted its own legislation to deal with crypto assets and is likely to adopt it before Europe finalises a standardised regulatory approach.

The orientation seems to be to maintain a line that balances welcoming innovation on the one hand and complying with legislation on the other, with a significant dose of caution to season the project:

“I can confirm that Cyprus supports the use of digital assets and cryptocurrencies, but we have to be extremely cautious and respect not only the legislation currently in force, but also the absence of restrictions,” noted Kokkinos who, about the choice of whether or not to wait for the ECB to establish its regulatory framework added: “Considering that any ECB regulations might be excessive, my answer is that we will go ahead on our own, respecting the rules.”

This is in contrast to the EU’s view that MiCA is the legislative box that will provide clarity for all member states, which instead continue to move forward on their own, as the island of Cyprus is doing.