If your business delivering services in or from Cyprus falls under the classification of a Crypto Asset Services Provider (further named as “CASP”), in line with the interpretation of the AML/CFT Law, you are subject to compulsory registration with the Securities and Exchange Commission (“CySEC”).
If you are a CASP set up in the EU Economic Area and supervised by one or more regulative authorities for AML/CFT purposes in respect of all services or operations taken or planned to be taken in Cyprus, you must provide proof regarding your registration for each service or operation. In a case where these business offers are not encompassed by the framework that administers your registration for AML/CFT purposes, you should apply for registration with CySEC.
For new establishments, there is a requirement to get registered with CySEC prior to launching their operations in or from Cyprus. Previously set businesses will have to be 100% adherent with the AML/CFT Law and the Directives designed in line with the AML/CFT Law.
Overview of regulative basis
The relevant regulative framework is represented by the following regulations:
- The AML/CFT Law;
- The Directive for the registering of CASPs;
- The Directive for the counteracting of illicit money circulation and funds terroristic organizations.
These laws lay down a number of rules regarding:
- The transparency and fit-and-proper position of the beneficiary owners and individuals placing a managing position;
- The terms in respect of registering;
- The operational terms;
- Conducting KYC, risk and compliance checks, and other steps;
- Determining the economic profile of customers;
- Defining the source of customer money;
- Checking the customers’ financial operations;
- Reporting on unusual financial operations;
- Taking risk assessment measures in respect of customers’ activities and steps per customer, operations, and cryptocoins in question.
Initial capital requirements for CASPs
Generally, the requirements for initial capital are established as follows:
For businesses providing investment advisory services – 50,000 EUR.
For businesses providing advisory services and/or any of the below-mentioned services – 125,000 EUR:
- receipt and procession of customer orders;
- completion of customer orders;
- cryptocoin to fiat money exchange;
- cryptocoin to cryptocoin exchange;
- delivery of services regarding the distribution, offering, and/or sale of cryptocoins, including the ICO;
- portfolio administration.
For businesses providing the aforementioned services and/or any of the following services – 150,000 EUR:
- management, transferring of ownership or site, maintaining, custodian services for cryptocoins or means enabling control over cryptocoins.
- underwriting and/or placing of cryptocoins.
- operation of multilateral systems, which combines many 3rd-party purchasing and selling interests in cryptocoins in a way that leads to transacting.
How to get registered
CASPs must send a properly fill out application form, together with applicable questionnaires and any extra details and/or needed evidence, in line with CySEC’s Announcements on the provision of applications, and pay the corresponding fee. An e-version of the application form (i.e. only Form 188.01) should be also provided at [email protected].
Please contact us to get more information.
You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.
