Digital & Technology
Introductory Remarks
Back in 2018, EU Member States (including Cyprus) signed a Joint Declaration creating the European Blockchain Partnership (EBP) and agreed to cooperate in the establishment of a European Blockchain Services Infrastructure (EBSI). In addition, Cyprus, together with six other EU Member States, signed the joint Declaration on the utilisation of Distributed Ledger Technologies with the aim of enhancing cooperation in the digital sector and rendering Southern Europe a ledger in emerging technologies. With a clear vision to actively participate in the pan-European technological revolution, the Government of the Republic of Cyprus has also published and approved in the same year a National Strategy entitled “Decentralised Ledger Technologies” and set the goal to promote the development of these technologies. The ultimate goal was (and still is) to make Cyprus a pioneer by being amongst the first EU countries to create an attractive; regulated and safe environment for companies utilising business models based on these technologies.
Since then, Cyprus has been working in parallel with the numerous International regulatory developments and has taken important steps towards the introduction of local regulations governing different aspects of the current global technological evolution. Key local authorities and other stakeholders, such as the Cyprus Securities and Exchange Commission (CYSEC) and the Cyprus Central Bank, are all participating in the on-going process of developing a solid regulatory infrastructure in this area.
On the 6th of September 2021, the Cyprus Ministry of Finance published a proposed Bill entitled “the Distributed Ledger Technology Law” on its website for public consultation.
The Goal of the Proposed Bill
The proposed legislation envisages to:
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- facilitate the application of DLT including blockchain technology;
- apply the principle of technological neutrality while at the same time providing legal certainty, to promote the proper use of smart contracts in Cyprus; and
- promote innovation and growth, while affording protection to investors as well as consumers.
- facilitate the application of DLT including blockchain technology;
The proposed bill aims in particular to regulate the property status of tokens; the different records in blockchain and other DLT as well as the relevant application of Smart Contracts.
Our Firm, in coordination with our trusted tech partners Pundi X and Panobly Technologies, which are both international companies operating in this field, is actively participating in the public consultation. More specifically our firm is currently preparing a report for the Cyprus Ministry of Finance with both legal as well as technical comments on the proposed Bill.
You can download a copy of the proposed Bill here.
How can we help?
At G.C.Hadjikyprianou & Associates LLC, we help innovative companies navigate their operations through the newly developed technological realms.
There is no doubt that, in order for a holistic and accurate advice to be provided in this area, an in-depth understanding of the relevant technological infrastructure is necessary. We thus pride ourselves of being the only law firm in Cyprus with exclusive partnerships with academic institutions as well as international tech companies (Pundi X and Panobly Technologies) operating, amongst others, in the fields of Blockchain; Cryptocurrencies; AI and IoT. Our lawyers are thus supported by a group of experts who deeply understand the challenges and the real technicalities behind newly developed technologies in order to ensure that any legal advice given to our clients is not theoretical and vague but pragmatic and accurate. Through these partnerships, we strive to explain the intricate regulations in plain and simple language to help our clients adapt to them wisely. Our aim in this area is to remove legal obstacles and guarantee compliance with local and international regulatory regimes so that our clients can fully focus on the implementation of their projects and ideas.
