Regulators of Crypto in Cyprus
Cyprus has established a structured regulatory framework for cryptocurrency activities, ensuring compliance with both national and EU-wide AML/CFT regulations. The primary regulatory bodies overseeing the crypto sector in Cyprus include:
Cyprus Securities and Exchange Commission (CySEC): The key regulatory authority responsible for supervising Crypto Asset Service Providers (CASPs) and ensuring adherence to AML/CFT obligations under the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007. CySEC also manages the registration of CASPs operating in or from Cyprus.
Central Bank of Cyprus (CBC): While not directly responsible for crypto regulation, the CBC plays a role in financial stability and monitors digital asset-related risks within the financial system.
Unit for Combating Money Laundering (MOKAS): Cyprus’ Financial Intelligence Unit (FIU), responsible for investigating suspicious transactions and ensuring compliance with AML/CFT requirements across financial institutions, including CASPs.
Cyprus Innovation Hub: An initiative by CySEC that fosters dialogue between regulators and crypto market participants, providing guidance on compliance matters and promoting responsible innovation in the financial sector.
Step-by-Step Process to Obtain a Crypto Business License in Cyprus
Reserve a Company Name
- Submit an application to the Cyprus Registrar of Companies for name approval.
- Approval takes up to three days.
- The reserved name remains effective for six months.
Prepare Foundation & Licensing Documents
- Draft and submit key legal documents, including:
- Memorandum & Articles of Association
- The reserved name remains effective for six months.
- HE1 Form (Application signed by an authorized attorney)
- HE2 Form (Declaration of registered office address)
- HEZ Form (Statement of Director & Secretary)
- Other required corporate governance documents
Open a Corporate Bank Account
- Establish a business bank account in Cyprus.
- Deposit the minimum required capital (depending on the crypto service category).
Transfer the Authorized Share Capital
- Based on the classification of crypto activities:
- Category 1: €50,000 (Investment advisory CASPs)
- Category 2: €125,000 (Crypto exchange & order execution CASPs)
- Category 3: €150,000 (Custody & multilateral trading facility CASPs)
- Maintain own funds equal to the greater of the required capital or 25% of the CASP’s annual fixed expenses.
Pay Registration Fees
- Standard registration: €165
- Accelerated registration: Additional €100
Register the Company with the Cyprus Registrar of Companies
- Submit the incorporation application along with all required documents.
- Registration is usually completed within five working days if documents are in order.
Apply for a CASP License with CySEC
- Submit the license application to the Cyprus Securities and Exchange Commission (CySEC).
- Provide compliance documents, including AML/CFT policies and risk management procedures.
- Expect a review process lasting up to six months.
Register with the Cyprus Tax Department
- Obtain a tax identification number (TIN).
- Register for VAT (if applicable).
Comply with Ongoing Regulatory Obligations
- Ensure the company maintains a physical office in Cyprus.
- Employ local staff on a full-time basis.
- Implement AML/CFT compliance frameworks.
- Maintain accurate accounting records and undergo an annual audit.
How ABM Global Assists in Obtaining a Crypto Business License in Cyprus
ABM Global provides end-to-end support for crypto businesses seeking licensing in Cyprus. Our expert consultants ensure compliance with CySEC regulations and streamline the entire licensing process, minimizing delays and regulatory risks.
Business Structure & Company Incorporation
- Advising on the optimal legal structure (Ltd or Plc) based on business activities.
- Handling company name reservation with the Cyprus Registrar of Companies.
- Drafting and filing all incorporation documents, including the Memorandum & Articles of Association.
- Assisting in setting up a physical office and local staff recruitment (as required by CySEC).
- HE2 Form (Declaration of registered office address)
CASP Licensing Application with CySEC
- Preparing and submitting the Crypto Asset Service Provider (CASP) license application.
- Ensuring compliance with CySEC’s capital requirements based on business activity categories.
- Drafting AML/CFT policies, internal risk controls, and governance frameworks.
- Liaising with CySEC throughout the six-month review process and addressing regulatory inquiries.
Banking & Financial Compliance Support
- Assisting in opening corporate bank accounts with Cypriot financial institutions.
- Advising on fund transfer and meeting capital requirements (€50K–€150K).
- Ensuring compliance with tax registration and VAT obligations.
AML/CFT & Regulatory Compliance
- Implementing AML/CFT procedures in line with CySEC and EU directives.
- Conducting risk assessments, customer due diligence (CDD), and transaction monitoring setups.
- Training compliance teams on ongoing obligations and regulatory reporting requirements.
Ongoing Regulatory Support & Audit Compliance
- Providing annual audit assistance as per CySEC and tax regulations.
- Assisting in filing financial statements and corporate tax returns.
- Ensuring continuous regulatory updates and compliance adjustments.
Ongoing Compliance Services by ABM Global for Crypto Businesses in Cyprus
ABM Global offers comprehensive ongoing compliance services to ensure crypto businesses in Cyprus remain fully compliant with CySEC, EU regulations, and AML/CFT obligations. Our support includes regulatory reporting, AML compliance, governance frameworks, and continuous risk management.
Regulatory Reporting & CySEC Compliance
Crypto Asset Service Providers (CASPs) must adhere to the Cyprus Securities and Exchange Commission (CySEC) reporting requirements. ABM Global ensures seamless compliance by:
- Regulatory Filings: Assisting with periodic and annual reports, including financial statements and compliance reports.
- Transaction Reporting: Ensuring accurate submission of suspicious transaction reports (STRs) and periodic reports to CySEC.
- Regulatory Updates: Keeping businesses updated on changes in CySEC regulations, ESMA, and EU directives affecting crypto operations.
- Regulatory Audits: Providing support for regulatory inspections, audits, and inquiries from CySEC or other financial authorities.
Ongoing Compliance Services
AML/CFT Compliance & Risk Management
AML compliance is a critical requirement for crypto businesses to mitigate financial crime risks. ABM Global provides:
- AML/CFT Policy Implementation: Developing and updating Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) policies to align with evolving regulations.
- Customer Due Diligence (CDD) & KYC: Ensuring proper Know Your Customer (KYC) procedures, including Enhanced Due Diligence (EDD) for high-risk customers.
- Ongoing Transaction Monitoring: Implementing real-time and post-transaction monitoring systems to detect suspicious activities.
- Suspicious Activity Reporting (SARs/STRs): Assisting in identifying, documenting, and submitting reports on suspicious transactions to the relevant authorities.
- Risk-Based Approach (RBA): Helping businesses implement risk assessment methodologies to classify customers and transactions based on risk levels.
Internal Governance & Compliance Frameworks
Strong internal governance ensures crypto businesses operate ethically and in compliance with legal requirements. ABM Global assists with:
- Compliance Officer Support: Assisting in appointing and training a compliance officer to oversee AML/CFT programs.
- Internal Audit & Controls: Conducting periodic compliance audits to identify gaps and areas for improvement.
- Board & Senior Management Training: Educating key stakeholders on compliance obligations, risk management, and governance practices.
- Policies & Procedures Updates: Regularly reviewing and updating operational procedures to align with new regulatory requirements.