Crypto licence in Cyprus

Cyprus has established itself as a key jurisdiction for fintech and digital asset businesses, offering a strong regulatory environment, direct access to the EU market, and an attractive tax structure. With the integration of the 5th Anti-Money Laundering Directive (AMLD5) and alignment with the upcoming Markets in Crypto-Assets Regulation (MiCA), securing a crypto licence in Cyprus is now both a compliance necessity and a strategic advantage for Virtual Asset Service Providers (VASPs).

Regulatory framework
Cyprus does not operate under a stand-alone cryptocurrency law but regulates crypto assets within its anti-money laundering regime. The Cyprus Securities and Exchange Commission (CySEC) acts as the competent authority, overseeing and licensing entities that provide crypto-related services through the Crypto Asset Services Provider (CASP) registration system.

As of 2024, the relevant regulatory pillars include:

• AMLD5 – Extends anti-money laundering obligations to crypto service providers.

• MiCA – Coming into force EU-wide from mid-2025, with Cyprus already harmonising its rules accordingly.

• CySEC directives – Define operational, reporting, and compliance requirements for CASPs.

Who needs a crypto licence in Cyprus
Registration as a CASP is mandatory for any entity engaged in:

• Exchange between crypto assets and fiat currency

• Exchange between different crypto assets

• Custodian wallet provision

• Transfer of virtual assets

• Participation in, and provision of, financial services related to an issuer’s crypto-asset offering (including ICOs)

Key advantages of Cyprus for crypto businesses

• EU market access – As an EU member, Cyprus offers potential passporting rights under MiCA.

• Tax and business benefits – Competitive corporate tax rate of 12.5%, advanced financial services sector, and a skilled bilingual workforce.

• Regulatory credibility – CySEC licensing enhances investor trust and institutional confidence.

• Established legal support – Strong professional services sector experienced in fintech and blockchain matters.

Licensing requirements

To obtain a CASP licence, applicants must:

1. Incorporate a Cyprus company – Most commonly a private limited liability company.

2. Establish a physical presence – Office premises and local employees are required.

3. Appoint qualified directors – With proven experience in financial or crypto services.

4. Implement AML and compliance frameworks – Fully aligned with EU and CySEC standards.

5. Meet minimum capital thresholds –

   • €50,000 for basic services

   • €125,000–€150,000 for extended activities

6. Submit a full application to CySEC – Including business plan, AML manuals, KYC procedures, and other required documentation.

Timeline

• Preparation stage (2–4 weeks) – Company incorporation, drafting of internal policies, bank account opening.

• CySEC review (2–4 months) – Includes regulator’s questions and clarifications.

• Final approval – Licence issued and published in the official CySEC register.

Post-licensing compliance

Licensed CASPs must:

• File regular AML and compliance reports

• Maintain continuous customer due diligence (CDD)

• Keep detailed transaction records

• Have a designated compliance officer

• Notify CySEC of significant operational changes

Failure to comply can result in penalties or licence withdrawal.

At CYWORLD, we assist clients throughout the entire licensing process, including:

• Setting up and structuring the Cyprus company

• Preparing and submitting the CASP application

• Drafting AML policies and operational procedures

• Advising on MiCA readiness

• Providing ongoing compliance, audit, and legal support

Our approach ensures legal precision, strategic foresight, and full confidentiality at every stage.

As the EU continues to strengthen the digital asset regulatory landscape, Cyprus stands out as one of the most business-friendly and credible destinations for crypto ventures. Securing a licence here is not just about meeting regulatory obligations — it is a solid step towards sustainable growth in the digital economy.

Contact CYWORLD today to start your licensing journey with confidence.

This publication is intended for general informational purposes only and should not be considered professional advice. Specific guidance should always be obtained based on individual circumstances. CYWORLD bears no responsibility for any loss arising from reliance on the information provided herein.