Ministry of Finance announces intent not to move forward with Distributed Ledger Technology Law
Share
The Ministry of Finance has decided not to further promote the bill on “Distributed Ledger Technology Law”.
In June 2019, the Council of Ministers approved the National Strategy for Decentralised Technologies-Blockchain, which was prepared by the Cyprus government in collaboration with the House of Representatives, the Central Bank, the Securities and Exchange Commission, the Cyprus Bar Association, the Association of Certified Accountants, and experts from the private sector.
Pursuant to the provisions of the National Strategy for Decentralised Technologies-Blockchain, the “Distributed Ledger Technology Law of 2021” was drafted, which provided, amongst others, (i) clear definitions of distributed ledger technologies and cryptocurrencies, (ii) legal certainty and clarity vis-à-vis smart contracts and digital assets and (iii) authorisation to the Securities and Exchange Commission to issue secondary legislation for the supervision of Crypto Asset Service Providers (CASPs).
The Ministry of Finance cited the following reasons in its decision not to move forward with the bill:
1. The expected approval of the Markets in Cryptoassets (MiCA) Regulation by the European Parliament, which regulates the provision of services and the issuance of crypto-assets;
2. The limited scope of the bill; and
3. The Law Office of the Republic of Cyprus viewing certain provisions of the bill as redundant or not in accordance with the Constitution.
By Tony Kyriakides
For more information please visit our website microsite on Blockchain, Digital Assets & Crypto Currencies or send your queries at This email address is being protected from spambots. You need JavaScript enabled to view it.
