Blockchain technologies can revolutionize many areas of the economy and have a high integration potential. Experts believe that the ratio of risks to benefits outweighs in favor of undeniable advantages – accounting systems for new digital entities allow all economic sectors of states literally to improve and develop. The regulation of blockchain technology and cryptocurrencies in Cyprus still needs to be completed. However, the republic’s authorities are taking measures and creating a unified regulatory mechanism to assign official legal status to digital assets. The presence of a regulatory framework will allow regulation of the activities of financial and payment companies, brokers and traders at the state level.
Today, the island nation is on the list of the most attractive countries for organizers of fintech companies using blockchain technology. The country’s authorities are showing an increased interest in smart contracts with the subsequent expansion of their scope. Integrating the blockchain into the state system is the initial stage that will allow Cyprus to create the most favorable atmosphere for initiators and foreign investors with plans to conduct activities in the field of crypto assets. Any Cypriot company that wants to run a cryptocurrency-related business must apply for a license from CySEC. The licensing procedure in Cyprus is more complex, but there are many advantages to a crypto license Cyprus. You can learn more about all the nuances of obtaining consent and registering activities in Cyprus later in this article.
Any resident of the European Union can apply for a local license. However, it is worth remembering that the approval process includes many checks. Any company that plans to provide services related to digital assets must comply with the requirements established by local law. Any violation of the established norms may result in the loss of the CASP license.
The compliance, as mentioned earlier, requirements apply to all transactions involving digital assets.
Cyprus enjoys undeniable popularity among all cryptocurrency companies. Clear and loyal legislation is one of the main factors in choosing a jurisdiction for obtaining a cryptolicense. The licensing system is much better than any other European license. Service providers can choose from dozens of activities, including a different document package and a licensing process. Thus, a crypto company may only spend time obtaining approval in areas where it does not plan to work. Also, it is worth noting that some licenses are additionally divided into levels. It allows you also to consider the company’s rank and indicate high achievements. Another significant advantage is the taxation procedure.
It is important to note that the country has some of the most loyal taxes on financial companies, particularly crypto companies. We bring to your attention four main advantages of a crypto license in Cyprus:
When applying, the company pays a fee of 10,000 euros. However, most crypto businesses need help. You can turn to professionals who will help you register a company in Cyprus and apply for a license. The cost of such services is, on average, 25,000 euros.
Despite the vast list of advantages and very loyal legislation, companies must still meet many needs:
These are the central norms and requirements. However, different standards may be put forward that must be observed depending on the company’s activities.
Obtaining a license is sometimes referred to as authorization. There are three primary levels of permission within the Cyprus Jurisdiction. The level can be determined by the volume of services the company plans to provide its customers. Each level has different capital requirements.
It is a start-up category that includes investment advisory companies. The initial capital, in this case, should be 50,000 euros
In this case, companies can provide advice and exchange cryptocurrency for fiat currency, manage a cryptocurrency portfolio, supply and distribute digital assets, and place crypto assets without fixed liability. A company must have an initial capital of at least 125,000 euros to obtain such a license.
In this case, companies can perform administrative operations in addition to the functions of licenses one and two. These powers include the custody of crypto-currency assets and their transfer of ownership. Also, having this crypto exchange license Cyprus, the company can carry out transactions involving several parties. Companies receiving such permission must have an initial capital of 150,000 euros.
Cyprus cryptocurrency regulation requires that every organization that operates in this jurisdiction is required to obtain a work permit and pay taxes regularly. A permit in this jurisdiction allows you to work legally throughout the EU. Obtaining a cryptolicense is a rather complicated process that involves the passage of essential steps. To begin with, you need to collect a package of papers and check how your organization meets all the demands of government agencies. Next, people in business have to apply to the relevant government authorities. The company needs to collect a large package of papers:
You can obtain a cryptocurrency license in Cyprus within 4-6 months if all documents are in order.
If people want to open a crypto organization that will work from this jurisdiction, they need to go through several necessary steps:
It isn’t easy to go through all the above steps on your own, so there is a need to seek help from lawyers. The specialists of our company will accompany your organization at all stages of creation, which will help to get a work permit much faster and easier.
Before applying for an activity license, it is necessary to establish a company in Cyprus. In this case, an individual must go through all the stages, from collecting documents to finding a unique name. An application for company registration is submitted to the Registrar of Companies of Cyprus. A decision on whether to allow the registration will be made within five days of the submission of the application. detecting and reporting any suspicious transactions that may occur. Ensure the company complies with all international regulations and requirements in Cyprus. The expected time for preparing the application and supporting documents is about 1-2 months, depending on the availability of the necessary documents
Your organization must meet specific requirements if you want to work with cryptocurrency Cyprus. Among the most important are the following:
The minimum amount of the authorized capital is 50 – 150 thousand euros. The size of the authorized capital should constantly increase as the number of investors grows. Company money and client assets must be strictly separated. Your organization must comply with AML policies. You are required to verify your clients and store data about their transactions. You must report suspicious activity to the appropriate government authorities if you notice suspicious activity.
Your organization’s reporting must comply with IFRS. It means you must keep an honest and open record of your activities. Once a year, you must convene your directors and shareholders in a public meeting and give a complete account of your organization’s activities over the past year. After this meeting, you must submit an annual report to the regulatory authorities. The inspector will examine your company’s activities and decide to renew the permit. All activity records of your organization must be kept at the local office.
Appointment of Persons to Leadership Positions According to the established requirements, at least one of the executive directors must reside in Cyprus and have permanent residence in the country. For executive directors, a unique test is additionally assigned for compliance with all the norms and standards of the jurisdiction of Cyprus. It allows all employees who hold important positions in the company to pass a suitability test and confirm their experience and knowledge in the field of the Cyprus cryptocurrency market. To appoint a person to a position, a particular application is submitted. KASP approved the form of this document. Along with the application, the company must provide the following:
The application can be considered up to 6 months from the submission date.
The company pays a standard fee of 10,000 euros at the time of application. In case of rejection of the application for a license, this fee is not refundable. If the application is approved, the company undertakes to pay an annual license renewal fee of 5,000 euros.
Any change in the activities of the company must be additionally registered. The company undertakes to notify the licensing authority about a difference in the address of a cryptocurrency wallet, website updates, or changes in services related to the company’s activities. Also, it is necessary to register each employee who will hold a high-ranking position in the company, for example, board members. The cost of writing any of these changes can range from 1,000 to 5,000 euros.us. It allows all employees who hold important positions in the company to pass a suitability test and confirm their experience and knowledge in the field of the Cyprus cryptocurrency market. To appoint a person to a position, a particular application is submitted. KASP approved the form of this document. Along with the application, the company must provide the following:
application can be considered up to 6 months from the submission date.
The company pays a standard fee of 10,000 euros at the time of application. In case of rejection of the application for a license, this fee is not refundable. If the application is approved, the company undertakes to pay an annual license renewal fee of 5,000 euros.
Any change in the activities of the company must be additionally registered. The company undertakes to notify the licensing authority about a difference in the address of a cryptocurrency wallet, website updates, or changes in services related to the company’s activities. Also, it is necessary to register each employee who will hold a high-ranking position in the company, for example, board members. The cost of writing any of these changes can range from 1,000 to 5,000 euros.
People must undergo the registration process if they want their organization to operate within the law. You have to fill out an application and provide all the necessary information in printed and electronic form on a flash drive. You also need to pay fees: 10 thousand euros for the consideration of the application and 5 thousand for the annual renewal of the permit.
The license here is issued for only a year, after which the firm must undergo a comprehensive check and re-pay the fee.
After the application is ready, people have to contact the Department of Information Technology by email. You will be provided credentials for the unique portal, where you can submit data and papers related to the organization.
This portal will publish all public data about your organization. It is so that your users and investors can verify that your organization has a local permit.
If people want to open a Cyprus crypto firm, they need to choose one of the types of business entities. The choice mainly depends on whether you plan to list your shares in the general auction. Next, we want to talk about these types in more detail.
It is the most common type of business model among crypto organizations in this jurisdiction. It has these features:
Both citizens of this country and non-residents can register as such an organization.
This type is suitable for organizations that wish to raise investment by publicly selling their shares to the general public. The shares of such companies may be listed on the stock exchange. If you need help understanding the types of business entities, you can seek help from our organization’s specialists. They will answer your questions and tell you what type of organization your organization is.
Crypto regulations require all organizations in this jurisdiction to pay taxes regularly. It is worth saying that the tax system here is quite complex, which includes the following types of taxes:
As you can see, the corporate tax in this jurisdiction is one of the smallest among the EU countries, which makes this jurisdiction very attractive for doing crypto business. If you need help understanding the taxation conditions in this jurisdiction, you can seek help by contacting our specialists. They will analyze the activities of your company and calculate how much taxes you are required to pay regularly.
Getting a work permit if you don’t have a law degree can be incredibly difficult. In this case, you should contact our specialists for help. They have extensive experience in this area, and you can simply trust the professionals in smoking.
Our lawyers will help to draw up the necessary papers, check how your organization complies with the requirements of state regulation, and give recommendations on what changes need to be made. In addition, if you issue a power of attorney for our specialists, they will represent your interests in state bodies, which means that your participation in licensing will be minimal.
We provide services for obtaining a crypto license and in the following jurisdictions:
Crypto license Cyprus
If people in business want their organization to be successful and snowball, they must obtain permission to work in a respectable jurisdiction. Cyprus has very favorable taxation and relatively simple regulation of the crypto industry. A license in this jurisdiction allows you to work legally throughout the EU. You can contact the specialists of our firm, who will help you draw up the necessary papers and represent your interests in state bodies.
Yes. To apply for a license, a company must be registered in Cyprus and comply with the regulations of the licensing authority.
It is necessary to draw up a business plan, prepare all documents, pay 10,000 euros, and submit an application.
The license in Cyprus is divided into three levels. Each level allows different activities, from investment advice to holding and selling cryptocurrency assets.
One of the executive directors must reside in Cyprus and have permanent residence.
Can non-residents of Cyprus be members of the board of a Cypriot crypto company?
Yes. In this case, the rule that one of the executive directors is a resident of Cyprus must be observed.
Mihhail Sherle
Mihhail Sherle
