Crypto Asset Services Providers (CASP) Services
CySEC is the anti-money laundering and counter-terrorist financing (AML/CFT) supervisor for crypto-asset operations undertaken in or from Cyprus.
If you are a Crypto Asset Services Provider (“CASP”), within the meaning of the Prevention and Suppression of Money Laundering and Terrorist Financing Law (“AML/CFT Law”), that provides services in or from Cyprus, you must formally register with the Cyprus Securities and Exchange Commission (“CySEC”).
If you are a CASP established in the EEA and registered with one or more EEA National Competent Authorities for AML/CFT purposes in relation to all services or activities undertaken or intended to be undertaken in Cyprus (i.e., involving Cypriot residents, including incorporated or unincorporated entities based in Cyprus), you must submit a notification, providing evidence in relation to your valid registration for each service or activity. Where these services or activities are not covered by the framework that governs your registration for AML/CFT purposes, you should apply to be registered as a CASP with CySEC.
New businesses must register with CySEC before commencing their operations in or from Cyprus.
Existing businesses that demonstrate a material existing crypto-asset activity will need to apply before the end of October 2021 and be fully compliant with the AML/CFT Law and the Directives issued pursuant to the AML/CFT Law.
Regulatory Framework
The applicable regulatory framework is comprised of:
- The AML/CFT Law;
- The CySEC Directive for the register of crypto asset services providers;
- The CySEC directive for the prevention and suppression of money laundering and terrorist financing.
The regulatory framework includes rules, inter alia, in relation to:
- The fitness and probity of the CASP beneficiaries and persons holding a management position;
- The conditions in relation to CASPs registration;
- The organisational and operational requirements;
- Preforming Know Your Client and other client due diligence measures;
- Drawing the economic profile of clients;
- Identifying the source of client funds;
- Monitoring the clients’ transactions;
- Identifying and reporting suspicious transactions;
- Undertaking a comprehensive risk assessment in relation to clients’ activities and take proportionate measures per client, activity and crypto asset in question
Crypto-asset activities and initial capital
|
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 |