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

Capital Requirements:

  1. €125,000 Licence via which the crypto provider can offer the following services:
  • Reception & Transmission;
  • Execution of orders on behalf of clients;
  • Portfolio management;
  • Investment advice;
  • exchange between cryptocurrencies and fiat money;
  • cryptocurrency asset exchange;
  • participation and / or provision of financial services on distribution, supply and / or sale of cryptocurrencies, including the initial offering;
  • disposal of cryptocurrencies without withdrawal commitment.
  1. €150,000 Licence which includes the services above along with the following:
  • management, transfer, retention, and / or safekeeping, including the depositary of cryptocurrency assets or cryptographic keys or means that allow control over cryptocurrencies;
  • acceptance and / or disposal of cryptocurrencies with withdrawal commitment;
  • operation of a multilateral system in which interested parties for buying and selling crypto assets may interact in a way that results in a transaction.

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.