Crypto License in Cyprus

To successfully obtain a Crypto License in Cyprus, the applicant must fulfill several conditions. These can be divided into the following key points:

• The company must be registered in Cyprus and have at least four directors, two of whom are executive directors. CySEC must approve these directors as qualified professionals in their business.
• The company must have commercial premises in Cyprus and employ staff with Cypriot citizenship to carry out the critical functions of the business.
• Appropriate policies and procedures for preventing money laundering and terrorist financing, by Cypriot law, must be developed and provided.
• Mechanisms are needed to ensure the business's smooth running and sustainable operation. The company must have clearly defined procedures and lines of communication for effective management.
• The applicant company needs to meet the minimum initial capital requirements set by CySEC - between EUR 50,000 and EUR 150,000, depending on the license type.
• The company must submit regular reports to CySEC and comply with anti-money laundering requirements. In addition, the company must have mechanisms to record customer information ("Know Your Customer").
• Executive directors resident in Cyprus will be the primary contacts for CySEC, particularly for reporting and inspection matters.
• The company should have internal regulations that minimize potential conflicts of interest with clients.

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:

• The company must be registered in Cyprus and have a full-fledged office and staff.
• Careful consideration should be given to the reputation of all participants, from beneficiaries to service providers.
• Particular attention should be paid to formalizing beneficiary reports and corporate policies.
• All questionnaires and forms should be neatly completed and included in the application package.
• Make sure the CASP license class you choose meets the capital requirements.
• Customer identification procedures (KYC) should be strictly followed, and the associated risks should be assessed.
• Financial transaction planning and a continuous monitoring system to detect suspicious transactions are critical.
• It is essential to have clearly defined internal policies and procedures to prevent possible conflicts of interest with clients.

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:

1. Official business formation papers: Legal documents proving the state registration of your organization, such as articles of incorporation and statute, are required.
2. Managerial credentials: Provide resumes and short biographies of key team members to assess their qualifications.
3. Commercial Plan: Prepare a detailed business plan outlining financial expectations, marketing strategies, and an analysis of potential risks.
4. Internal policies and guidelines: Documents that explain your company's policies, including anti-money laundering (AML) practices and Know Your Customer (KYC) policies, are required.
5. Proof of financial strength: Documents that prove your financial stability, such as income and expense statements or guarantees from a bank, must be provided.
6. Proof of identity of shareholders and managers: Proof of residence and other information to identify critical individuals is required.
7. Legal Statements: Documents proving that your activities comply with legal requirements, including anti-money laundering and counter-terrorism.
8. Additional licenses: This should also indicate that it already operates in other countries and has privileges there.

Please note: You should consult with legal experts in the field for the most up-to-date and detailed information.