Central Bank of Cyprus Joins Bitcoin Bashing Bandwagon

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....

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....

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....

"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....

Cyprus is joining the "beware of bitcoin" bandwagon, it seems. A report published Tuesday on at CyprusMail indicates that the Central Bank of the country and the Ministries of Trade and Finance released a joint statement warning that the public could lose their money if they put it into bitcoin (and presumably other digital currencies). "There is no specific legal protection in the event of an exchange platform losing money or collapsing," the statement read. The statement brought up the usual warnings the community is now accustomed to: extreme volatility, possibility of getting stolen by....