On the 25th of June 2021, the Cyprus Securities and Exchange Commission published the R.A.D 269/2021 which provides guidance and sets forth additional regulatory requirements to eligible parties regarding the provision of services of financial products that fall within the definition of cryptocurrencies.

The aforementioned legislation regulates the advertising material, explicitly requires accurate and proper information towards prospective clients with clear communication that the prospective client can understand and use and introduces additional measures to prevent any conflicts of interest that may put the client in an adverse position.

The legislation requires additional organizational requirements in addition to the existing regulatory framework which include among others acquisition of an LEI (Legal Entity Identifier) additional initial capital, capital adequacy and most importantly profit distribution in accordance to the results of audited financial statements.

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