Cyprus is “all in” for blockchain regulation

Author: Mikaela Kantor, Senior Associate - Prountzos & Prountzos LLC

The Cyprus Ministry of Finance announced on 04 July 2019 that the country is looking at finalising its very own draft bill on blockchain regulation by the end of 2019.

The draft bill will aim to regulate blockchain technology whilst bringing Cyprus among some of the few countries, together with Malta and Gibraltar, that will have developed "a national strategy in regulating and exploiting blockchain technology", resulting to the country’s national legislative framework.

In presenting the national strategy, Minister of Finance Mr Harris Georgiades mentioned that pilot implementation of blockchain technology will be initiated within the Departments of Land and Surveys, Customs and Excise, the Tax Department and the National Betting Authority; agencies that are faced with excessive bureaucracy and administrative burden on a daily basis. A successful and legally viable blockchain regulation may also serve as an additional stimulus for start-ups and other companies to develop business models based on blockchain technology.

Following the announcement for the set-up of a Deputy Ministry for Digital Strategy, Research and Innovation by the President of the Republic at the end of June 2019, the news on the release of a draft blockchain bill are greeted with positivity and an open-mind; signalling a shift towards greater acceptance of technology to be embedded in the public sector and the launching of the digital transformation of the country.

More details on the official Blockchain Strategy as issued by the Ministry of Finance can be found here (available in Greek only).

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