Even before the current Bitcoin Bull Run, Cyprus was already doing a lot in the blockchain sector. The country has updated its legislation over the past few years to promote the adoption of the blockchain. Cyprus first embraced Bitcoin on a wide scale in 2013 during the economic crisis.
Joint Declaration on the Blockchain
On December 4, 2018, seven European nations signed a declaration to promote blockchain technology. Cyprus was one of the nations that signed the declaration. In October 2018, Invest Cyprus announced that it was working with VeChain, a blockchain platform, to promote the adoption and development of the blockchain.
The partnership was in line with the goals of the Cyprus Securities and Exchange Commission (CySEC), which has been closely studying potential use cases for the blockchain for several years. In August 2018, the government announced the creation of a working group to develop blockchain use cases. Industry players have also been working closely to promote the technology. They have formed a non-profit organization called Cyprus Blockchain Technologies to promote blockchain technology. The organization includes several members such as KPMG and the Bank of Cyprus.
Educating the Masses
Education is crucial to the adoption of blockchain technology. In line with that thinking, the University of Nicosia launched a certified online course for the blockchain. Besides that, they launch the world’s first master’s degree program for cryptocurrencies. The online course has already proven quite popular, and over 25,000 students are already enrolled.
The university also launched the Institute for the Future, which is designed to help entrepreneurs and startups through the University of Nicosia community. Startups also get access to academic and corporate partners. It ensures that they do not face hiccups when working on blockchain-based solutions.
Cyprus has numerous incentives for entrepreneurs working in the blockchain sector. The government is supportive of the technology via legislation while private institutions work to provide the people with the right skills. These incentives are already attracting entrepreneurs from all over the world. Several major conferences are held in the island nation annually. Thousands of players in the blockchain and crypto sector attend these conferences.
A major incentive for blockchain entrepreneurs moving to the island is the great tax system. Cyprus already has some of the lowest taxes throughout Europe. In the nation, the corporate tax is set at just 12.5%. For European immigrants, the island nation also offers huge reductions to incentivize them.
In general, there are very few bureaucratic requirements when setting up a blockchain business in Cyprus. Combined with the great tax system, Cyprus is slowly emerging as a major hotspot for blockchain-based businesses globally.
Today, numerous crypto exchanges and businesses have set up their operations in the island nation. With the recent Bitcoin Bull Run, corporate investors are entering the crypto sector. Many of these will most likely look to set up their operations in jurisdictions with friendly legislation and a great tax system. Cyprus will no doubt emerge as a favorite location.