Why You Should Choose Cryptocurrency License in Cyprus
Situated far from Europe’s mainland near the Mediterranean, Cyprus is famed as a premier hub for cryptocurrency trading businesses in Europe. With a crypto license Cyprus, firms gain privileged access to the dynamic market. Limassol, located in the south of Cyprus, is a significant financial nexus, not only nationally but throughout the Mediterranean. This city hosts branches of major crypto entities like CoinSmart, eToro, Coinbase, and Bitpanda within its active financial district, underscoring the importance of securing a crypto license in Cyprus.
Advantages of Securing a Cyprus Cryptocurrency License
- There are a number of factors that explain the popularity of this country among financial service providers.
- Service providers can choose to license various investment services, thanks to legislation and regulation that has a proven and clear system.
- The licenses are divided into different levels, so individualized licenses are applied, which has a positive effect on the speed of their approval.
- There is support and recognition of various financial instruments, including crypto derivatives.
- The tax system of Cyprus is more attractive for corporate development than in most European countries.
- Regulatory authorities provide foreign companies with broad rights, creating favorable conditions for investors.
- Compared to other international jurisdictions, Cyprus does not impose any restrictions on cryptocurrency mining.
Cryptocurrency Licensing and Financial Services in Cyprus
In Cyprus, the Crypto Asset Service Providers (CASPs) facilitate exchanges between cryptocurrencies and fiat money, with mandatory regulatory authorization for crypto trading operations. The Securities and Exchange Commission (CySEC) oversees CASP applications, managing authorized crypto asset providers.
Legislation defines Service Activity Providers (SAPs) as entities providing services, including but not limited to:
- Fiat-to-crypto trading.
- Crypto asset exchange.
- Handling and storage of cryptographic assets and keys.
- Offers and sales of cryptographic assets, including initial offers.
- Distribution, supply, and/or sales of cryptographic assets and related financial services.
These services, regulated by CySEC, include order execution, independent business operations, crypto portfolio management, investment advice, and crypto asset placement with or without liabilities. While Cyprus lacks specific crypto asset regulations, compliance with existing legislation is essential for crypto operations, permitting activities like mining investment, ICO operation, digital currency transfer and ownership, fiat-to-crypto exchanges, and cryptographic service creation.
Requirements for Acquiring a Crypto License
Before applying for and receiving approval from CySEC, applicants must satisfy these key criteria:
- Establish and control a company in Cyprus with at least two Board members, including an executive director knowledgeable and experienced in the field; all directors must pass a CySEC test.
- Implement sufficient internal controls for seamless company operations.
- Develop policies and procedures aligned with the Prevention and Suppression of Money Laundering and Terrorist Financing Directive.
- Plan to maintain an operational office in Cyprus staffed with full-time employees to execute core company functions.
- Employ transparent and well-defined management structures to ensure top-tier management quality.
Why you Should Contact the Experts
Prifinance team of professionals is ready to help you open a company and obtain a cryptocurrency license in Cyprus. You will be provided with legal support, and everything will be prepared for business and licensing. Experts take into account the uniqueness of each client and make sure that you are confident in the administrative side of your business.
