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 that offer bitcoin-related products.
But it’s more of a matter of simply not knowing what to do — the result of lack of legislation on the matter.
“It’s a grey area,” a bank official said.
For now, it would seem as if the island of Cyprus is an opportunity for bitcoin start-ups, but will authorities crack down in the future?