Crypto License in Cyprus

Launch Your Crypto Business in Cyprus with a CySEC CASP License

Cyprus is one of the most attractive EU jurisdictions for crypto projects in 2026. The country issues VASP licenses through CySEC, functioning as CASP licenses (Crypto Asset Service Provider) under MiCA (Markets in Crypto-Assets Regulation), enabling legal operations across the European Union.

Key benefits of licensing in Cyprus:

• Full MiCA compliance
• Legal recognition for exchanges, wallets, token issuers, and other crypto services
• Access to European banking and payment systems
• High investor trust and institutional reputation
• Flexible corporate structures suitable for startups and institutional projects

Why Cyprus is a Top Choice for CASP Licenses

Cyprus offers unique advantages for crypto companies:

• Regulated CySEC VASP license compliant with MiCA
• 100% foreign ownership allowed
• Fast company registration (5–10 business days)
• Transparent governance and reporting framework
• Access to EU banks and international investors
• Competitive corporate tax rate (12.5%)
• Clear requirements for AML/KYC, cybersecurity, and risk management

Cyprus combines European legitimacy with flexible company structures, making it ideal for both centralized exchanges and custody providers.

Types of Crypto Businesses Suitable for a CASP License in Cyprus

The CySEC CASP license covers:

• Cryptocurrency exchanges targeting European clients
• Custody and wallet service providers
• Token issuance projects (TGE/STO)
• DeFi and Web3 platforms
• Crypto hedge funds and investment vehicles
• Web3 infrastructure companies

Company Formation in Cyprus for CASP Licensing

Before applying for a VASP/CASP license, you must register a legal entity. Typical structure: Private Limited Company (Ltd)

Features:

• 100% foreign ownership allowed
• Flexible share capital requirements (from €1 if no risk-based requirement applies)
• Fast incorporation: 5–10 business days
• MiCA-compliant governance and control framework
• Confidential but regulator-compliant ownership structure

This structure is widely used for exchanges, token projects, and crypto funds.

Requirements for CySEC CASP / VASP License

Applicants must provide:

• Business plan with services, target markets, and operational workflow
• AML/KYC compliance policy according to EU directives
• Internal risk management and governance procedures
• Board and management structure demonstrating relevant professional experience
• Cybersecurity and IT controls
• Due diligence for directors and UBOs

CySEC emphasizes substance, internal control, and investor protection, especially for exchanges and custody services.

Costs and First-Year Budget (Cyprus CASP Example)

Regulatory Fees:

• CASP / VASP license: €20,000 – €35,000
• Annual supervisory fee: from €15,000

Company Formation & Maintenance:

• Incorporation: €2,500 – €5,000
• Registered office & maintenance: €2,000 – €4,000

Legal & Compliance Structuring:

• AML/KYC documentation: €7,000 – €15,000
• Risk management and governance: €5,000 – €10,000
• Full advisory & submission package: €15,000 – €30,000

Estimated first-year budget: €50,000 – €100,000+, depending on scale and platform complexity.

Licensing Timeline

1. Business model and risk assessment
2. Company registration: 5–10 business days
3. Compliance document preparation: 3–6 weeks
4. Submission to CySEC
5. Regulatory review and clarifications
6. Approval and license issuance

Typical timeframe: 2–4 months. Complex exchange or custody setups may require additional review.

Banking and Payment Infrastructure

A Cyprus CASP license improves credibility with:

• EU banking institutions
• Crypto-friendly payment providers
• Stablecoin settlement and fiat-crypto partners

Bank approval factors:

• Transparent ownership and source of funds verification
• Quality of compliance and risk management framework
• Demonstrated operational control

Professional structuring significantly increases the probability of successful bank onboarding.

Ongoing Compliance Obligations

Licensed CASP entities must:

• Maintain active AML/KYC monitoring
• Appoint compliance and AML officers
• Submit periodic regulatory filings
• Pay annual supervisory fees
• Conduct internal and external audits as required

Non-compliance can result in fines or license revocation.

Comparison: Cyprus CASP vs Other EU Crypto Jurisdictions

Cyprus (CySEC VASP / CASP)

• Regulation: MiCA-compliant
• Cost: medium
• Reputation: high in EU and international market
• Best suited for: exchanges, custody providers, token issuers, institutional projects

Other EU jurisdictions:

• Malta: EU CASP, similar functionality, higher costs
• Estonia: medium cost, EU-focused startups
• Luxembourg: strong financial reputation, MiCA-compliant, higher minimum capital

Frequently Asked Questions — CASP / Crypto License in Cyprus 2026

What is CASP?

 CASP (Crypto Asset Service Provider) is a licensed EU entity for crypto-asset services under MiCA: exchanges, wallets, token issuers.

Can you obtain a CASP license in Cyprus?

 Yes. CySEC issues VASP licenses that function as CASP under MiCA.

Can foreigners own 100% of the company? 

Yes, no local shareholder is required.

How long does licensing take? 

Typically 2–4 months depending on business complexity.

Are corporate taxes applied? 

Standard corporate tax on Cyprus: 12.5%.

Is physical presence required?

 Depends on the scale and type of activity.