Central Bank of Cyprus Warns of Bitcoin Perils
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....
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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....
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....
"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....
Angelos Votsis warns people about the risks of Bitcoin. Bitcoin's popularity has grown tremendously in Cyprus. Bitcoin has seen its popularity go up tremendously in the past year. Some argue that this is due to the worldwide financial crisis. This is proven when looking at specific countries that have been hit harder than others by this disaster. Cyprus being a great example of this. Bailout deal. The mediterranean island reached headlines last year after several unusual measures were taken to eliminate the national debt. Cyprus agreed to a bailout deal that was set by the European Union.....