Thanks to the developed banking system and sound taxation Cyprus has long been the center of attraction of Finance from all over Europe. However, in 2013, the country’s banking crisis erupted, which almost paralyzed the Work of the Central Bank of Cyprus. One of the anti-crisis measures was the introduction of taxation of Bank deposits. These events have led to a decrease in the rating of Cyprus in the financial world.
Since then, Cyprus has started to look for new growth points for its economy. One of them was the attraction of Blockchain startups and a loyal attitude to the circulation of cryptocurrency in the country.
The banking crisis prompted Cypriots to look for alternative ways to store and increase funds – they drew attention to Bitcoin, which has grown steadily and was more attractive compared to Bank deposits.
Blockchain ecosystem in Cyprus currently
Currently, the economy of Cyprus has stabilized, but the number of traders and owners of digital currency has not decreased. Many companies in Cyprus accept bitcoins. In the capital of the country, there are bitcoin ATMs (ATR).
Students of the largest educational institution in the country – the University of Nicosia can pay for education with bitcoins. Since 2014, this UNIVERSITY has launched a master’s degree in cryptocurrency.
The cryptocurrency exchange Authenta Trade is registered in Cyprus. Currently, it successfully operates and allows customers to conduct operations with both cryptocurrency and Fiat money.
Many foreign Blockchain startups and companies that raise funds through ICO choose Cyprus as a place to register.
In October 2017, the head of Cysec (Cyprus Securities and Stock Market Commission), Demetra Kalogirou, announced plans to transfer electronic payments in the country to on Blockchain technology.
The Commission has developed a directive regulating the activity of companies using cryptocurrencies.
In addition, the Commission is a participant in several international research projects and is actively looking for new areas of application of blockchain technology in the country.
Cyprus strives to become the first country to start using blockchain technologies in public administration.