Crypto License in Cyprus

Crypto License in Cyprus – A Complete Guide (2025)

Introduction

Cyprus has become one of the leading destinations for cryptocurrency businesses due to its EU-compliant regulatory framework, low corporate taxes, and established financial infrastructure. The country provides a structured licensing process through the Cyprus Securities and Exchange Commission (CySEC), allowing Crypto-Asset Service Providers (CASPs) to legally operate within the European Union (EU).

With the implementation of the Markets in Crypto-Assets Regulation (MiCA), Cyprus is aligning its crypto regulations with EU-wide standards, ensuring legal certainty, investor protection, and cross-border access.

Why Choose Cyprus for Your Crypto Business?

• MiCA Compliance & EU Recognition – A CySEC license enables companies to operate across the EU under the passporting system.
• Favorable Tax Regime – A 12.5% corporate tax rate, among the lowest in the EU.
• Established Financial Infrastructure – Access to banking, payment processing, and investment networks.
• Regulatory Clarity – A well-defined framework supporting crypto exchanges, custodial services, and token offerings.

Types of Crypto Licenses in Cyprus

CySEC offers three classes of Crypto-Asset Service Provider (CASP) licenses, depending on the scope of services:

• Class 1 – Provides investment advice on crypto-assets.
• Class 2 – Includes order execution, trading on own account, and portfolio management.
• Class 3 – Covers all Class 1 and 2 services, plus the operation of a multilateral trading facility (MTF) and custodial services.

Step-by-Step Process to Obtain a Crypto License in Cyprus

1. Register a Company in Cyprus

Establish a Limited Liability Company (LLC) as the legal entity for your crypto business.

• Timeline: 5 – 10 business days
• Cost: Varies based on legal and administrative fees

2. Open a Corporate Bank Account

A business account is required to deposit the minimum share capital and process transactions.

• Timeline: Varies by bank and compliance requirements
• Cost: Bank fees apply

3. Meet Capital Requirements

CASPs must deposit the minimum required capital before submitting their application:

• Class 1 License: €50,000
• Class 2 License: €125,000
• Class 3 License: €150,000

4. Implement AML/KYC Compliance

All licensed CASPs must adhere to AML (Anti-Money Laundering) and KYC (Know Your Customer) requirements, including:

• Internal risk assessment procedures

• Transaction monitoring systems

• Reporting obligations to CySEC

• Timeline: 5 – 7 business days

• Cost: Legal and compliance expert fees apply

5. Submit Application to CySEC

A complete application package must include:

• Corporate structure details

• Business model and financial forecasts

• AML/KYC compliance policies

• Timeline: 3 – 6 months

• Cost: CySEC registration fees apply