Cyprus – the New Blockchain Island within the EU?
The amendment of the Cyprus Prospectus Law effected on the 19th of April 2019, established Cyprus among the leading jurisdictions to launch an STO. The amendment raised the threshold below which there is no obligation to publish a prospectus to raise up to 5 million Euro during the crowdfunding.
Therefore, Security Offerings such as STOs, with total consideration in the Union of less than 5 million Euro calculated over a period of 12 months, are excluded from the obligation to submit a prospectus to CySEC for approval, before starting the offering. The exclusion, of course, is subject to the notification requirements established by the Prospectus Regulation (EU) 2017/1129 for cross-border offerings.
Moreover, Cyprus took another step forward when its Minister of Finance, Harris Georgiades, stated that the country’s blockchain regulation would undoubtedly be ready this year. The Minister of Finance commented that blockchain technology is a “new technological revolution similar to that of the internet”. The president of the Cypriot Parliament, Demetris Syllouris added on the matter that the national strategy will promote Cyprus’ digital innovation, provide the required framework, and a roadmap exploring the application of distributed ledger technology (DLT) across many industries while also dealing with risks and threats.
The announcement is consistent with Cyprus’ friendly approach towards cryptocurrencies, blockchain technology and DLT. On the 19th of February 2019 Cyprus Securities and Exchange Commission proposed that new measures must be enacted to bring Crypto Asset Activities into Cyprus Anti-Money Laundering Law following the 5th AML Directive. Additionally, Cyprus was one among the seven EU Member States participating in the declaration for the promotion of blockchain use.
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