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Cyprus Central Bank issues Crypto investment warning

07:51 - 10 February 2025

Economy Reporter

The Central Bank of Cyprus (CBC) has issued a warning as regards investments in crypto assets, emphasising the risks associated with financial stability and consumer protection.

The CBC advises the public to be cautious before investing in cryptocurrencies, citing the potential for significant financial losses and fraud. The bank explains that crypto assets exist in various forms, including those used for payments, investments, and access to goods or services.

Furthermore, the CBC warns that cryptocurrencies face challenges such as extreme volatility, speculative trading, fraud incidents, and a lack of regulatory oversight and infrastructure. It states that crypto-related activities are still considered high-risk under anti-money laundering and counter-terrorism financing regulations.

The Central Bank reaffirms that no Cypriot financial institution directly or indirectly invests in cryptocurrencies at this time, emphasising that trust in money fundamentally relies on central monetary authorities, distinguishing it from speculative private ventures like crypto assets.

(Source: CNA)

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