As 2023 draws to a close, Cyprus’ regulatory landscape witnesses a transformative shift with the unveiling of Law 98(I)/2023 by the Cyprus Securities and Exchange Commission (CySEC). This amendment revisits and enhances the AML/CFT framework, placing Crypto-Asset Services Providers (CASP) squarely within its ambit. At FiveComply, we emphasize the importance of understanding and navigating these changes to ensure seamless compliance.
CASP Entities: A Refined Definition
The revamped legislation broadens the scope of CASP entities, defining them as entities that:
- Are established in the Republic of Cyprus.
- Are not established in Cyprus but offer services or conduct activities professionally from the Republic.
- Are not established in Cyprus but offer services or conduct activities professionally to the Republic, unless they are enlisted in a Register of other Member States for services rendered to the Republic.
With this updated definition of CASP entities, it is mandatory for all such entities to enlist in the Cyprus CASP Register overseen by CySEC.
Consequences of Non-Compliance: A Regulatory Alert
In a notable departure from previous iterations, the amended law introduces penalties for non-compliance by CASP entities. Those failing to register with the Cyprus CASP Register face stringent consequences:
- Potential imprisonment extending to 5 years.
- Financial penalties reaching up to €350,000.
- A combination of both punitive measures.
FiveComply underscores the gravity of these penalties, advocating for proactive compliance to mitigate risks and ensure business continuity.
Navigating Compliance: FiveComply’s Commitment
The evolving regulatory framework necessitates expert guidance and tailored solutions. FiveComply remains persistent in our commitment to empowering clients, offering bespoke solutions tailored to unique business needs. Our team’s expertise, coupled with a deep understanding of regulatory intricacies, positions us as your trusted partner in navigating this evolving landscape.
FiveComply stands at the intersection of regulatory expertise and industry insight, offering CASP entities continuing support in achieving compliance.