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.
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.
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
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.
One of the main advantages of licensing crypto-currency activities in Cyprus is low taxes. All cryptocurrency areas of activity are subject to standard rates. Cryptocurrency trading income is currently taxed at a rate of 12.5%. The tax is deducted exclusively from income. At the same time, income is reduced by the number of expenses in earning income. Therefore, payments are not taken into account when calculating tax.
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.
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.
Yes. In this case, the rule that one of the executive directors is a resident of Cyprus must be observed.