Until now, the European Union has not been regulating cryptocurrencies in any form, but CySEC, the Cyprus Securities and Exchange Commission, has recently issued its first cryptocurrency regulations. This is obviously of interest for those following the developments within the European Union, since Cyprus is a EU member.
<h2>About the new regulations</h2>
The CySEC regulations can be found in Circular C417, with the subject : Prudential treatment of crypto assets and enhancement of risk management procedures associated with crypto assets.
Circular C417 regulates the treatment of crypto assets and provides CIFs (or Cyprus Investment Firms) a compliance environment for investing in cryptocurrency. These regulations enable CIFs to calculate their own funds and capital ratios for their crypto investments.
It is important to note, however, that CIFs must first obtain authorization (from CySEC) for trading cryptocurrencies. Furthermore, the regulation specifies how risk assessment must be conducted so that risk and capital are in balance.
In addition cybersecurity measures as well as operational and reputational risks must be considered, as are further anti-money laundering regulations and control.
<h2>How can Porat Group help if you are interested in cryptocurrency regulation in Cyprus?</h2>
A regulated environment is best approached by professional law firms. Porat Group has the necessary knowledge and representation in Cyprus to be your guide towards a successful, regulated cryptocurrency business in the country, as well as your hands on partner in the process itself.

Contact us if you have questions related to these new regulations and/or the other services we offer for companies based in, aspiring to break into, or interested in the Cypriot market.