Registration of Crypto-Asset Providers in Cyprus
Cyprus initially introduced its Crypto Asset Service Providers (CASP) framework in June 2021 under local anti-money laundering (AML) legislation. Under that regime, interested applicants registered with the Cyprus Securities and Exchange Commission (CySEC) to provide crypto services in compliance with the Prevention and Suppression of Money Laundering and Terrorist Financing Laws of 2007–2021.
However, in line with the EU’s broader crypto regulation initiatives, MiCA (Markets in Crypto-Assets Regulation) has replaced the local CASP framework. From 17 October 2024, CySEC ceased accepting applications under the local regime. A preliminary phase for MiCA applications began on 13 November 2024, allowing prospective CASPs to submit draft applications in anticipation of MiCA’s full commencement date of 30 December 2024. Since then, new crypto-asset service providers in Cyprus must apply for authorisation exclusively under MiCA.
Local CASP Regime and the Move to MiCA.
Under MiCA, entities offering crypto-asset services—such as the exchange, custody, or transfer of crypto assets—must seek authorisation in their home EU Member State. For Cyprus, CySEC is the competent authority responsible for overseeing applications, supervising ongoing compliance, and protecting investors’ interests.
Before MiCA, service providers established in the EEA (European Economic Area) and already registered for AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism) purposes with another EEA authority could notify CySEC if they operated in or from Cyprus. Under the new MiCA regime, those providers may still rely on certain passporting rights once authorised in one EU Member State, but they must ensure compliance with MiCA authorisation requirements for all services they provide and keep CySEC informed if Cyprus is part of their operational scope.
New market participants intending to offer crypto services in or from Cyprus must now prepare and submit their application under MiCA to CySEC before commencing operations. Existing businesses that had been active under the local CASP regime must transition to MiCA, ensuring full compliance with the new regulatory framework and all relevant AML/CFT provisions.
Under MiCA, a “Crypto-Asset Service Provider” (CASP) is defined as any legal person or entity whose occupation or business involves providing one or more of the following services to third parties on a professional basis:
- Custody and administration of crypto-assets on behalf of clients;
- Operation of a trading platform for crypto-assets;
- Exchange of crypto-assets for fiat currency or other crypto-assets;
- Execution of orders for crypto-assets on behalf of clients;
- Placement of crypto-assets;
- Reception and transmission of orders for crypto-assets;
- Providing advice on crypto-assets;
- Portfolio management of crypto-assets;
- Providing transfer services for crypto-assets on behalf of clients.
Why Choose Cyprus for Your MiCA License?
Cyprus stands out as a premier destination for establishing a CASP under MiCA. The island’s progressive regulatory framework, competitive tax environment, and thriving fintech sector make it an ideal launchpad for companies looking to expand throughout the European Union.
With MiCA now fully in force, securing a CASP license in Cyprus grants seamless market access to over 450 million consumers across the European Union. Backed by the CySEC’s reputation for clarity and innovation in its oversight, license holders benefit from a well-structured, future-ready regulatory ecosystem.
MiCA “Passporting” Advantage
One of MiCA’s key benefits is its single licensing regime. Once authorised in any EU Member State, CASPs can offer services across the entire European Union without having to apply for additional licenses. This streamlines operations, cuts costs, and accelerates market entry for crypto businesses.
Strategic Business Incentives in Cyprus
Beyond regulatory advantages, Cyprus offers a compelling business environment for CASPs. The country boasts a corporate tax rate of just 12.5%, one of the lowest in the EU, alongside a wide network of double taxation treaties that enhance cross-border efficiency.
Coupled with a highly skilled, multilingual workforce and a strategic geographic position bridging Europe, Africa, and Asia, Cyprus provides a cost-effective and globally connected base for crypto firms aiming to leverage MiCA’s opportunities.