Eternity Law International — News — Cryptocurrency exchange company in Cyprus

Cryptocurrency exchange company in Cyprus

Published:
August 28, 2022

Cypriot state authorities have been constantly bettering Blockchain legislation, making the country a first-choice hub for investors, Defi startups, and cryptocurrency exchange companies in Cyprus. The circulation of non-fiat currencies and e-funds is under the remit of the central banking institution, and the trading politics are set up by the SEC. 

Overview of Cypriot legal basis for crypto assets

On this island, operation with crypto assets is not clearly supervised, however, any operation with them must be in line with the applicable legislation. Activities that are allowed by the law, are the following: 

  • mining;
  • functioning of ICO projects;
  • transferring and possession of virtual assets;
  • exchanges (fiat-crypto, crypto-crypto, and vice versa);
  • delivery of crypto-related services.

Cryptocurrency can be defined as inventories, intangible assets, and investment tools, subject to their nature. Hence, the launch or activities of FinTech projects by default necessitates acquiring a CySEC license. 

CySEC also issues permits, that oblige traders to notify purchasers about the main aspects of non-fiat money and payments and warn of the risks of failure to redress damages of losses and exchange rate volatility. In 2017, the regulative bodies set the norms according to which the volume of traded virtual currency should not exceed 15% of the total circulation of the company, and the loan for tools is reduced to 1:5 (the reason is higher market volatility).

In a brief, forming an exchanger on the island has many benefits and allows operation throughout the European Union. The popularity of this jurisdiction is enhanced by low tax rates and extra opportunities for non-resident firms.

Licensing of Cypriot crypto exchanges

The state legit framework applies the provision of European Union Directives and the law regulating the counteraction to the illicit circulation of money and their contribution to terrorist operations. The next rules for crypto exchanges in Cyprus are applied:

  • incorporation of an entity with appropriate organizational-legal form and a “physical” office;
  • setting up an account in a Cypriot bank;
  • employment of directors and workers with appropriate knowledge and expertise in the field of finances proven by appropriate certificates;
  • drawing up documentation in line with Know Your Customer obligations and European Union law, business plan, etc.

To incorporate a crypto exchange in Cyprus it is mandatory to:

  • guarantee the obedience of the beneficiary owners and senior managers of the company to the law (certificate of good conduct);
  • form the company properly;
  • adhere to obligations of KYC, and AML obligations;
  • identify the origin of money for the duly execution of operations;
  • constantly monitor payment operations carried out by clients;
  • identify and notify the regulator of suspicious payments;
  • estimate the risk the customer operation may entail.

Additionally, it is crucial to fulfilling the obligations concerning the volume of the entity capital. Generally, there are three types:

Type 1, includes firms providing advisory offers in the field of finances. The initial paid-up capital for this type is EUR 75,000.

Type 2, includes firms providing the services as follows:

  • executing payments of clients;
  • conducting payments in respect of the exchanges of the crypto/fiat, or crypto/crypto;
  • delivering services in respect of distributing, offering, and/or selling virtual funds, as well as ICO;
  • The minimum paid-up capital for this type is EUR 150,000.

Type 3, includes firms delivering the services as follows:

  • managing, transferring, possessing, and/or storing virtual funds or mechanisms by which supervision over virtual funds is performed;
  • placing virtual funds;
  • The paid-up capital for this type is EUR 750,000.

The sequence of acquiring a crypto license

  1. Opening a company (a detailed description of the condition is above).
  2. Collection of the necessary information about the company and its beneficiary owners.
  3. Paying an application fee.
  4. Applying to the regulatory body for a license, with the probable provision of other particulars.

These are the basic conditions a cryptocurrency exchange company in Cyprus must execute under the law. If you have any questions or intend to open crypto company in this jurisdiction, contact us. Our experts have a huge expertise in buying and selling businesses, as well as licensing.

You may also view new offers in categories Cryptocoins and licensing of cryptocurrency operations, Ready-made companies, Banks for sale and Licenses for sale.

You could be interested

Forex license in Brazil

FX space in Brazil is as accessible to businesspersons as possible. Despite the fact that until 2005 this sphere did not have a development, now, the government has changed its opinion and Forex trade contributes in every possible way. In order to conduct officially allowed and regulated deals here, organizations need Forex broker license in...

Offshore company - disadvantages and advantages

Please carefully study the tax aspects in your jurisdiction before buying an offshore company in one of the island jurisdictions. Let’s take a closer look at the tax aspects associated with owning and operating an offshore company. Offshore companies are usually incorporated in two forms: International Business Company (IBC) and Limited Liability Company (“LLC”). In...

Anjouan Gambling License

In the ever-evolving field of the online-gambling field, achieving a reliable and transnational determinated gaming permit is paramount for workers exploring legitimacy and trust. This article will delve into the daintiness of the Country Gaming License, analyzing its demands, types, benefits, request methods, affiliated prices, and the surcharge field for gaming firm. Anjouan Gambling License...

Company registration in Luxembourg

Luxembourg is a developed region with a stable economy and a transparent legal framework. This is the basis for entrepreneurs to be able to successfully conduct their activities here, earning a high income. However, it should be remembered that Luxembourg is not an offshore zone. Company forms and taxation In Luxembourg there is no offshore...

LATAM Fintech Licensing 2025: Trends, Reforms, and Risk Zones

There are some newly implemented rules regarding the fintech sphere in Latin America. The aim of them is putting a stop to fraud. This creates plenty of difficulties for regional fiscal institutions and enterprises, since they have to stay adhered to these rules and be kept posted regarding any alterations. This article will make you...

Cryptocurrency License in the USA

At the legislative level, the license for cryptocurrencies in the United States was secured in 2013. Then it was decided to lift the ban on cryptocurrencies and develop special provisions for their use. Cryptocurrencies in America are decentralized and used like regular money. Consequently, exchanges and other companies that carry out transactions with crypto-money must:...

Related posts

Estonian cryptocurrency exchange license

Estonia is a leader in the tech field, with a forward-thinking approach to innovations and regulation. This is particularly evident in the digital assets field, where Estonia has created a legal foundation that provides clarity and stability for legal entities operating in the sector. Getting Estonia license crypto is straightforward and the benefits are numerous....

What is crypto exchange?

A cryptocurrency exchange is considered to be a platform for digital means trading. If businesspersons or others intend to participate in cryptographic currency trading, they need to do it through exchange, because now quite a few conventional investment firms offer digital money exchange operations. There’re 3 main types of cryptoexchangers – centralized, mixed and decentralized....

Operation of a cryptocurrency exchange company in Czech Republic

The entities operating in the FinTech domain are progressively setting up in the Czechia – an EU state with a strong economy and blockchain-friendly environment. Here crypto assets are regarded as an economic good or commodity rather than a standard unit of value of a currency. Although it is not a formal means of payment,...

Cryptocurrency exchange company in Poland

Jurisdictions in Eastern and Central Europe are quickly enhancing the sector of FinTech, thus possessing themselves as a bright marketplace for the virtual assets’ exchange companies. Almost a decade ago, in 2014, the Polish government rejected the recognition of Bitcoin as a currency but stated that contracts on the grounds of its index were completely...

Operations of a Cryptocurrency Exchange Company in Portugal

Financial technologies and virtual currencies particularly are hot subject matters in the FinTech sector among the Portuguese regulative bodies. In the past years, these state-of-the-art instruments have become a mainstream trend due to the growing value of the world’s first decentralized cryptocoin – Bitcoin, the influx of ICOs across the globe, and their market cap...

License for the exchange of cryptocurrency in Estonia

Nowadays, Estonia can rightfully be considered one of the most profitable states for issuing a license for cryptocurrency and conducting crypto business. Businesspersons from all over the world choose this state to launch ICO projects, obtain licenses for the exchange of crypto currency, use cryptowallets. Every year, more and more businessmen choose Estonia to launch...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: