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).

EY Law Cyprus (Prountzos & Prountzos LLC), being a member-firm to the full-service professional services organization of EY, offers to its clients the unique advantage of being able to bring a multi-domain and cross-service line approach to solve the bigger and more complex end-to-end business transformation challenges.

We can cover all legal aspects in relation to blockchain solutions drawing expertise from our huge network of legal professionals from more than 80 countries and over 3,000 lawyers, whilst successfully teaming up with our Advisory, Tax and Transactional Advisory colleagues.

We strive to help clients BEdigital rather than simply DOdigital. It’s a way of thinking and behaving that needs to be embedded across the entire value chain. Being digital is not just about the front or back end of the organization, but an end-to-end transformation of the whole enterprise.

In EY Law we understand our client’s needs to capitalize on technology and we help clients to identify how digital technology can help optimize business processes and free up resources. We ​​assist our clients to develop capabilities to continuously reinvent and implement better customer experiences and have a readiness plan to ensure they comply with future regulatory challenges, including new privacy and disposition rules, third-party data requests, regulatory events and any upcoming blockchain regulation.

Author: 

Mikaela KantorSenior AssociatePrountzos & Prountzos LLC