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Cryptos – Cyprus – CySEC

Home Cryptos – Cyprus – CySEC

Register of Crypto Asset Service Providers

The Cyprus Securities and Exchange Commission (CySEC) is the financial regulator that regulates the Crypto Asset Service Providers.  The CySEC Directive for the Prevention and Suppression of Money Laundering and Terrorist Financing related to Crypto Asset Service Providers provides the legal framework for the provision of cryptocurrency exchange services and their operation.

Below you can find a summary, as to the applicable procedure to register as a Crypto Asset Service Provider in Cyprus:

Timeframe for completion: up to 6 months

CASP

Type of crypto-asset activity

Initial Capital

Class 1

CASPs that provide investment advice

€50.000

Class 2

CASPs providing the service referred to in Class 1 and/or any of the following services:

  •  reception and transmission of client orders
  •  execution of orders on behalf of clients
  •  exchange between crypto-assets and fiat currency
  •  exchange between crypto-assets
  •  participation and/or provision of financial services related to the distribution, offering and/or sale of crypto-assets, including the initial offering
  •  placement of crypto-assets without firm commitment
  • portfolio management.

€125.000

Class 3

CASPs that provide any of the services referred to in Class 1 or 2 and/or:

  •  administration, transfer of ownership, transfer of site, holding, and/or safekeeping, including custody, of crypto-assets or cryptographic keys or means enabling control over crypto-assets
  •  underwriting and/or placement of crypto-assets with firm commitment
  • operation of a multilateral system, which brings together multiple third-party buying and selling interests in crypto-assets in a way that results in a transaction.

€150.000

Requirements:

  1. Have an entity incorporated in Cyprus;
  2. Four (4) directors; two directors acting as executive directors and two non-executive directors; at least three (3) of them must be Cyprus residents. Directors must demonstrate knowledge and experience and must pass the CySEC “fit and proper” test;
  3. Local resident staff members shall be hired on a full-time basis to fulfil the key functions of the Company. Depending on the type of licence selected, the minimum number of personnel must be hired;

The Company must have a fully operational office in Cyprus.