Cyprus opens its doors to crypto providers

Cyprus opens its doors to crypto providers

The Cyprus Securities and Exchange Commission (CySEC) last week issued a directive regarding the registration of cryptoasset service providers (CASP).

In line with European-wide requirements, Cyprus recently updated its definition of legal entities’ obligations under the Money Laundering Prevention and Combating Law 2007 to include CASP within its scope. Moreover, the Cypriot authorities have also decided that Cypriot CASPs must be approved and registered with CySEC.

CySEC issued a relevant directive on June 25, 2021, which details the registration process. According to the directive, CySEC publishes the CASP registry on its website. The register must be publicly available and contain the following information:

• commercial name;
• legal form;
• CASP legal entity identifier, address and services.

Provided that the applicant has provided all requested information and documents, and has guaranteed integrity and competence, CySEC will approve registration in the CASP registry.

It is also important to note that the applicant’s board of directors must consist of at least four people. Two of them must manage the business activities of CASP, and two must be independent members.

With regard to capital, the CASP must comply with capital adequacy requirements at all times.

The above is for informative purposes only.  Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information.