E-Money Institutions in Cyprus (also known as EMI in Cyprus) are entities that licensed to provide financial services to third parties, store their funds on special segregated accounts and issue debit cards. Being more flexible and fast in their operations, EMIs are a great alternative to traditional banks. EMI’s clients can also execute payment transactions in two ways: using a platform or a debit card. Being authorized, an EMI can execute its services in all countries of the European Union on a cross-border basis.
To obtain authorization as an EMI, an applicant shall be a legal entity incorporated in Cyprus. The main precondition of granting a license is having a registered head office within the territory of the country. An EMI also falls under the regulation of the Central Bank of Cyprus (CBC) pursuant to the Payment Services Directive and the E-Money Directive which integrated into Cyprus legislation. Above all, such a license can also be issued by any country in the EU. The license petitions normally processed within 90 days of receipt of a duly filled out application form. In case the request is rejected, the regulatory body shall provide a proper explanation to a candidate.
To clarify, the license issued if an EMI has robust governance arrangements, including a coherent organizational structure with explicit and transparent lines of responsibility, efficient risk management processes, and control mechanisms. But the applicant may be asked to provide a reference letter for banks or the government proving high rates of return (RoR).
The applicants should also fill out the application form for authorization of an EMI. The request must include all the necessary information and documentation.
It is necessary to submit:
The CBC may claim the applicant to submit additional information, since it may regard it appropriate to determine an application for a license.
EMIs approved to perform the number of activities, contingent on the prior authorization of the CBC:
It is worth noting that the EMI license welcomes development in the sector of establishing new tools for working with digital money, also providing customer support, etc. EMIs that have obtained a license can receive the cash analog of transactions in digital currency, use e-payment means or resell products.
The establishment of an EMI in Cyprus has many benefits.
If you are also looking to obtain an EMI license in Cyprus, Eternity Law International can also offer you its legal, technical, and business expertise and consulting support. We also have ready-made options.
Do not hesitate to contact us if you are looking for an available EMI licensed company in Cyprus.
We also have multiple options worldwide!