Cyprus is among the leading jurisdictions in Europe for starting a cryptocurrency business. Gofaizen & Sherle provides quality support and expertise in obtaining a Crypto License in Cyprus remotely. We guarantee fast, efficient solutions and offer comprehensive licensing services
Businesses in Cyprus planning to develop in cryptocurrencies must obtain a license from CySEC. Getting a Crypto License in Cyprus can be challenging, but licensed companies enjoy several benefits.
Cyprus provides an open legislative system for crypto businesses with clear rules set by CySec. The regulator has extensive experience in controlling cryptocurrency companies. The Cyprus ecosystem includes crypto communities, traders, and financiers and provides bank accounts for licensed companies. Its loyal taxation distinguishes it.
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Firms seeking authorization must register as financial services providers. Essential requirements include a physical office in Cyprus, a local bank account, an experienced team, compliance with EU directives, and adequate customer records and data security systems.
The Cypriot regulator, CySec, has deep experience regulating brokerage firms, ensuring clarity and predictability in requirements and expectations. Legislation is consistent and predictable, guaranteeing reliability for service providers.
Wide choice of licenses
Providers can choose from various investment licenses tailored to meet specific needs.
Recognition of various financial instruments
The island is ready for innovation, recognizing various financial instruments, including cryptocurrency products.
Efficient tax system
Cyprus' tax policy favors corporate growth and development, making it more attractive than many European countries.
A vibrant crypto ecosystem
Cyprus has a thriving environment of crypto communities, traders, brokers, and financial experts. Regular specialized events and forums attract business people from all over the world.
Access to banking services
With a Cyprus cryptocurrency exchange license, entrepreneurs can settle payments through Cypriot banks, an advantage not easily found in other European jurisdictions.
Favorable tax policy
In Cyprus, entrepreneurs can benefit from some of the most competitive tax rates, offering effective optimization of income and dividend taxes compared to most EU countries.
Study all formal requirements and CySEC guidelines for license applicants. The official CySEC website provides up-to-date information, including the latest changes to legislation and regulations. You may need to consult legal and financial experts to understand the requirements fully.
Gather all the necessary corporate documents: certificates of incorporation, memoranda, articles, and more. Ensure that all documents are current and in compliance with Cypriot law. It is essential to translate the documents into English or Greek.
Create detailed anti-money laundering guidelines and measures. These manuals should be by international and Cypriot standards. They may include customer identification methods, reporting procedures, and other essential aspects of the operation. It is also worth consulting with anti-money laundering experts to draft effective and competent manuals.
Fill in the application form, check all details, and pay the required fee to open a Crypto License in Cyprus. Before submitting, ensure all parties in the application form are correct and up to date. After checking all the details, make the payment of the relevant fee.
So remember that CySEC may consider your application for up to 6 months.
It is recommended that you stay in touch during this period and be prepared to provide additional input or clarification if needed. Be aware of possible requests from the regulator and respond promptly, which may speed up the review process. In addition, keep an eye on the CySEC website for updates on possible legislation or licensing procedure changes.
Please contact crypto-licensing experts in Cyprus for more advice or clarification as needed.
To successfully obtain a Crypto License in Cyprus, the applicant must fulfill several conditions. These can be divided into the following key points:
The procedure for establishing a corporate structure in Cyprus is divided into four key points. The initial phase involves compiling all necessary documents for the application, including official records and data on the company's registration and its office space. It also requires the approval and submission of a unique company name, distinct from others already registered in Cyprus. The entire package of documents is sent to the Cyprus Registrar of Companies for review, and a final decision is usually made within five working days.
In terms of applying for CASP licensing, the process can be complex and requires consideration of several factors:
Given the preparation of all necessary documentation, the process is expected to take one to two months.
The regulatory body CySEC imposes several strict criteria and documentary requirements to officially launch a cryptocurrency business in Cyprus. The key ones are listed below:
Please note: You should consult with legal experts in the field for the most up-to-date and detailed information.
There are currently three types of Crypto License Cyprus, based on different capital requirements:
This license is issued to CASPs whose main activity is financial advisory services.
The required authorized capital is 50,000 euros.
Allows to provide consultations as well as a variety of financial services, including accepting applications and transferring clients' orders, executing orders on behalf of clients, converting cryptocurrencies into fiat, exchanging between different crypto-assets, participating in financial transactions related to cryptocurrencies, risk-free placement of crypto-assets and investment portfolio management.
The required authorized capital is 125000 euros.
CASP provides various type 1 and type 2 financial services, administration and transfer of ownership of crypto-assets, secure storage and management of cryptographic keys, and creates a multi-party system for convenient crypto-asset transactions.
The required authorized capital is 150000 euros.
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Suppose you are a Crypto Asset Service Provider (CASP) and operate in the context of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Law. In that case, you must formally register with the Cyprus Securities and Exchange Commission (CySEC) in Cyprus or elsewhere.
Suppose you are already a registered CASP in the European Economic Area (EEA) and carry out activities related to Cyprus (including the participation of Cypriot residents or organizations in Cyprus). In that case, you must provide documentation confirming your up-to-date registration for each specific service or activity. If your actions do not meet the AML/CFT registration framework, you should apply for CASP registration before CySEC.
New companies planning to start operating in or from Cyprus must first register with CySEC.
Existing companies providing significant cryptoasset services must apply for registration before CySEC and fully comply with the legislation on the prevention of money laundering and terrorist financing, as well as the relevant directives issued under that legislation.
The applicable regulatory framework for CASPs is based on:
These documents are essential for regulating cryptoasset activities and ensuring compliance with the legislation in this area.
Holders of Cyprus cryptocurrency exchange licenses can take advantage of low corporate income tax rates. It is important to note that cryptocurrencies are considered a taxable asset in Cyprus, which implies that Crypto Asset Service Providers (CASPs) are liable to pay standard income taxes.
Currently, income derived from trading cryptocurrencies is taxed at 12.5%. It is important to note that income derived from cryptocurrency activities can be reduced by considering the costs associated with its receipt. This tax structure makes Cyprus an attractive destination for cryptocurrency transactions and related services.
The registration fees for the application are €10,000. It is important to note that successful applicants are exempted from the additional cost for the first year of their registration.
After that, there is a fee of €5,000 to renew the registration for one year. These fees ensure an efficient and reliable registration and renewal process for crypto asset service providers (CASPs).