The Cyprus Securities and Exchange Commission, on the 30th of March 2017, issued an announcement warning investors and traders on the risks of carrying out transactions involving Xecoin (cryptocurrency). Xecoin is not a financial instrument and does not fall within the scope of the Investment Services and Activities and Regulated Markets Laws of 2007 to 2016.
What are cryptocurrencies?
Cryptocurrencies are considered to be a subcategory of alternative currencies and more specifically of digital currencies, using encryption techniques in order to control the generation of units of currency and to confirm transactions.
Please keep in mind that the Cyprus legislation does not include provisions for the protection of the investors carrying out transactions in any kind of cryptocurrency or virtual currency.
As a reminder, the Cyprus Securities and Exchange Commission issued a similar warning on the 6th of February 2014 about Bitcoin.
For further information on digital currencies, you can read our related article on Bitcoin and the Law.
For legal advice on regulatory matters, you can get in touch with the AGP FS Regulatory and Advisory Team.