Crypto license in Cyprus

Published:
April 24, 2023
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Crypto`s exchanges are gaining more and more rage in the global monetary system. Therefore, for many companies engaged in mining and operations in this area, the question arises as to where it is best to conduct their business. Traditionally, they choose regions with stable legislation and progressive technologies for work. One of these countries is Cyprus.

To operate in this market, companies need to get a Cyprus crypto license, but corporate owners don’t always understand how to get one and which license to choose. That’s why we recommend asking for help from our staff.  

The benefits of acquiring a due in Cyprus

The Cypriot`s market attracts many advantages for providers of monetary assistance. The local law is very transparent and corporations understand the rules of the game. Therefore, they can immediately determine the type of license they need for a cryptocurrency exchange license in Cyprus.

At this country, it is possible to get several types of licenses with different levels of capabilities. This will help to immediately consider what requirements the chosen managerial arrangement is subject to so that the corporation will not apply for a license, which will be immediately rejected. In addition, various financial instruments regularly appear on the Cypriot territory, allowing for faster work in the field of crypto`s dealings.

The region’s loyalty to such economic flows makes it possible to get quite an attractive taxation for the corporation. The rate will be somewhat lower than in any other European country. Also, licensees can count on the loyalty of the regulatory authorities. Their responsibilities include not only monitoring transactions but also advising license holders when unusual situations arise. 

Peculiarities of the procedure for obtaining a cryptologic license

To work in the local market, the provider`s services for the crypto-assets ought to obtain a license for a crypto exchange license in Cyprus. Only thanks to this document, they will be able to swap fiat currencies into cryptocurrencies and vice versa.

To obtain such a document, a company must apply to the SEC. Part of their prerequisites determines the status of the legal entity and the prerequisites that will devote to it. First and foremost, this concerns the prevention of illegal dealings.

The most common procedures clients want to operate are the following:

  • trading in crypto`s and fiat currencies;
  • deal of these acquisitions;
  • receiving, transferring, possessing, and storing cryptocurrency and the instruments that help to obtain it;
  • allotment of cryptocurrency or usefulness for obtaining it.

Transactions of this format may only be conducted with the permission of the supervisory authority and only in the following ways:

  • through classic trading, subject to instructions;
  • by executing orders in the client’s country;
  • large trading platforms;
  • underwriting cryptocurrency acquisitions.

As of today, licensees authorized to conduct cryptocurrency dealings must comply with Cypriot law and not conduct transactions with countries where there is a ban on cryptocurrency transactions.   

Empowering essentials

Representatives of the regulatory authorities impose the following prerequisites for corporations applying for a crypto-license in Cyprus:

  • the physical presence of the corporation in Cyprus;
  • at least one executive director must be a Cyprus citizen. At the same time he must have the appropriate qualifications and experience in cryptocurrency operations;
  • the Commission may verify the skills and knowledge of the executive director utilizing a specially designed test;
  • the presence of an internal control department, which must neutralize the possibility of financing terrorist organizations;
  • a sound business plan and executive format of the corporation, indicating the departments and surveillance mechanisms of the corporation.

Without fulfilling these requirements, companies are unlikely to be able to obtain a crypto License Cyprus to conduct operations with cryptocurrencies.  

Funds essentials

At the time of authorization and documentation filing, a corporation can expect the Cyprus Cryptocurrency Regulation to ask for the amount of documented capital. Based on the amount declared, companies can obtain 3 classes of license.

The first class is considered the simplest license. With its help, it is possible to trade only small dealings and not regularly. For such a company, the quantity of initial funds is 50 thousand EUR.

At the second-class company, funds must be 125 thousand euros. Having obtained such a license, companies will be able to:

  • exchange crypto`s into fiat money and back;
  • place acquisitions in cryptocurrency without fixing liability;
  • conduct dealings on behalf of consumers and fulfill their orders;
  • manage cryptoportfolios;
  • distribute, deliver, and sell cryptocurrency assets.

The third-class license of crypto exchange licenses in Cyprus is considered to be the highest in terms of capabilities. With it, you can get all the privileges of lower-class licenses, as well:

  • guarantee the placement of cryptocurrency;
  • conduct managing, dealings proposal, and storehouse of cryptocurrency;
  • assign the right to use the site’s services;
  • buy a share of cryptocurrency assets from third parties.

To get access to the full functionality of the operations, the company must have a capital of 150 thousand euros.

How much does a license cost and who will help to get it

For a corporation to get a Cyprus cryptocurrency license, it needs to fill out an application for authorization and get confirmation from the regulatory authorities. The cost of obtaining such an application is 10 thousand euros. But if the Cypriot authorities decide that the apps should be rejected, these funds are not returned to the company.

As a result, the company has to submit a new application and pay this amount all over again. If there are mistakes, the company loses its investment outright. To save them, we recommend that you contact our employees. Each of them has many years of experience in filling out this kind of apps format and working with the regulatory controls in Cyprus.

Are crypto`s transactions legal in Cyprus?

Cypriot authorities support any investments from foreign corporations. Therefore, mining and cryptocurrency processes are also permitted.

What is the current cost of a crypto`s licenses in Cyprus?

Corporations who want to obtain such docs are directed to pay a fee of 10 thousand euros. Thereafter, they make an annual payment of 5 thousand euros to renew it.

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