Central bank of Cyprus disapproves of cryptocurrencies
Without a hint of irony, the central bank of Cyprus warned citizens against cryptocurrencies, noting that such money is not government-backed, volatile and ripe for money laundering. The bank does not go so far as to describe digital currencies — chiefly Bitcoin — as illegal, but “does not approve any activity that falls within its purview, unless it can ensure the legality of that activity.” To quickly sum up the last year in Cyprus: The country accepted an EU bailout of about 10 billion euro, closed its second-largest bank, froze everyone’s bank accounts, then skimmed money off the top....
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Despite having issued a couple of warnings in the past with regard to the use of bitcoin, the Central Bank of Cyprus has essentially confirmed that bitcoin is not illegal, and there isn't quite anything they can do about it - but again warned of the potential dangers of getting involved. "Bitcoin is not illegal, but at the same time neither is it subject to control or regulation," a source at the bank told the Cyprus Mail. Cyprus-based Neo & Bee have taken the central bank's hands-off attitude to their advantage, launching the first of what is expected to be a number of physical branches....
"Bitcoin is not illegal" say anonymous sources from the Central Bank of Cyprus (CBC), according to a report by the Cyprus Mail. The fact remains that bitcoin is in a grey area for banks - neither a currency nor a financial instrument - and the sources warned that the digital currency isn't "subject to control or regulation". The Cypriot bank has recently indicated disapproval of cryptocurrencies, stating on 7th February that they were not classified as legal tender: "The CBC does not authorise any activity falling within its mandate unless legal compliance is ensured. Any activity without....
Photo by Leonid Mamchenkov. On Friday, Cyprus issued the latest in a deluge of central bank warnings against the use of Bitcoin. The central bank of Cyprus said in a statement that it "does not approve any activity that falls within its purview, unless it can ensure the legality of that activity. Activities without the necessary licensing are in breach of legislation." This leaves holding bitcoins to be legal, but warns holders from conducting any financial activity without the proper license. The statement goes on to warn Bitcoin users against price volatility and the lack of consumer....
The Central Bank of Cyprus (located in the Eastern Mediterranean) has weighed in on bitcoin, and it doesn't seem fond of the digital currency. The central bank released a statement on Friday that said it "does not approve any activity that falls within its purview, unless it can ensure the legality of that activity. Activities without the necessary licensing are in breach of legislation." As have a number of other countries, Cyprus also warned of bitcoin perils, which includes the fact they aren't government backed, are susceptible to extreme price variations, and can be used to launder....
A Sacrifice to the Cult of Fiat. The bail-in of Cyprus, when Cypriots were essentially mugged by their own government, remains a grim reminder of the fiat system's extreme dysfunction. Where families and businesses can be ruined overnight to support a corrupt banking sector, something is clearly amiss. And the problem is far from isolated to Cyprus, with bail-ins now the "template" for resolving bank failures across Europe and much of the developed world. Indeed, the EU just agreed to the creation of a central agency to administer future bail-ins. The Next Banking Shock for Cyprus... And....