CySEC steps up supervision of crypto-assets

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The Cyprus Securities and Exchange Commission launched a tender for Crypto-Asset Markets Data and Blockchain Analysis Platform Services as applications by Crypto-assets service providers rise.

CySEC chair President George Theocharides told CNA the Commission is designated, under the AML/CFT Law, as the competent authority to supervise Crypto-Asset Service Providers (CASPs).

So far, Cysec has received 27 applications by CAPS to acquire a license, of which CySEC has approved five.

It has also approved another five firms licensed by other European Competent Authorities.

According to the tender documents, the €120,000 two-year contract aims to grant CySEC access to real-time data provided by blockchain data platforms that will assist the Commission in understanding crypto-assets risks.

It needs to check transactions exposed to risky activities such as sanctions, child abuse material, terrorist financing, darknet markets, fraud, high-risk exchanges, ransomware, scams and stolen funds.

Authorities need to investigate the source and destination of cryptocurrency transactions and trace the flow of funds, evaluate the risk profile of supervised entities and applicants (for due diligence) and monitor the supervised entities’ compliance.

Theocharides pointed out that investors must be aware of the lax protection.

For the time being, crypto-assets and associate products and services are not covered by the rules of the EU on financial services.

CySEC took part in a joint campaign by the European Supervisory Authorities outlining warnings to consumers on the dangers associated with crypto-assets.

A campaign launched by CySEC aimed at investor awareness and protection is underway.