Eternity Law International News Overview – EMI in Cyprus

Overview – EMI in Cyprus

Published:
August 3, 2021

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.

EMI in Cyprus: overwiev

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).

According to the Cypriot legislation, the right to carry out e-money services given to:

  • Banks approved by the CBC or any other EU regulatory body;
  • the European Central Bank (ECB) and the national central banks (NCBs);
  • Cooperative financial institutions;
  • Government bodies;
  • E-money and postal payment services providers;
  • EMIs, having obtained proper authorization to carry out their activity.

How to apply for the EMI license in Cyprus:

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 operational program with a projected set of activities;
  • A business plan, comprising the structure, organization, and set of policies, processes, and operations of an establishment with a projected budget for the first 3 fiscal years of activities as an EMI;
  • Proof that the applicant has the necessary starting capital, the established minimum of which is 350 thousand euros;
  • Information about all directors, controllers, managers, shareholders or partners;
  • Evidence of good reputation, the legal status of the candidate and his/her headquarters address;
  • A copy of the Articles of Incorporation and the Memorandum or the partnership deed;
  • Provision of other necessary justifications.

The CBC may claim the applicant to submit additional information, since it may regard it appropriate to determine an application for a license.

Services provided by an EMI

EMIs approved to perform the number of activities, contingent on the prior authorization of the CBC:

  • Provision and operation of payment services;
  • Credit-granting;
  • Conducting other activities (payment cards issuance and digital wallet accounts creation; provision of currency exchange services; carrying out wire payments, IBANs issuance, etc.), subject to the applicable laws controlling such activities.

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.

  • The government’s loyal position and attractive tax system create excellent conditions for setting up EMIs in this country. Moreover, Cyprus is a gateway to the European Union granting EMIs the right to perform their activities across all 27 countries.
  • The corporation tax rate for net earnings from EMI’s activities is only 12.5%, which is also the lowest rate in the EU.
  • No taxation on earnings from the sale of titles and received dividends.

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.

You can also see our offers in category ready-made companies and licenses for sale

We also have multiple options worldwide!

You could be interested

Crypto license in Italy

Crypto-currencies continue to be actively implemented and expanded in the modern world. A lot of capital-holders are interested in joining the crypto-environment and developing their business in this direction. This is due to the fact that this area is quite productive, profitable, effective and rapidly developing. Italy is one of countries supporting crypto-currencies and trying...

Forex license in Thailand

Organizations dealing with securities weren’t earlier allowed to implement purchases, vends or exchanges of foreign currencies directly with customers, as it was impossible to license it. Due to the increasing popularity of investing in foreign currency-markets, Thailand’s regulators created new regulations giving securities-companies possibilities to apply for permission for foreign exchange-operations. Forex license in Thailand...

Offshore VASP license

Fintech services are actively developing today. Every month new corps are enlisted in many countries, which are ready to work in this sphere. Traditionally, most attention is paid to offshore zones. Such territories have the most applications to the controlling authorities for obtaining the relevant authorization documents. However, the legislation in this area also changes...

Pros and Cons of Working with Regulated Vs Unregulated Brokers

Forex-trading is rightly regarded the most extensive world`s financial-market. Its daily-volume of transactions amounts to 6+ trillion US dollars. For merchants, it is an excellent resource that will provide round-the-clock trading and easy access for both beginners and experienced-traders. To get started in this market, a client needs to enlist with online-brokers. Since this determination...

Pros and cons of central bank digital currencies

CBDC is generally determined as a digital liability of monetary authorities that is broadly accessible to the general public. We have already figured out what is CBDC, which countries have CBDC and how they differ from cryptocurrency. To get greater clarity, it is reasonable to put CBDC in the context of other types of money...

Banks for sale in Spain

Recently, more and more foreign investors are interested in the issue of purchasing a ready-made bank in Spain. This happens due to the excellent economic situation in the country, the developed tourism sector, and the good quality of life. Barcelona is one of the most interesting cities for acquiring a ready-made company in this jurisdiction....
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Washington

1629 K St. Suite 300 N.W.

Vilnius

Gediminas Avenue, 44A

Tallinn

Kesklinna linnaosa, Tuukri 19

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Riga

Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard

Sydney

20 Martin Place

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7