How to Obtain a Crypto License in Cyprus: A Step-by-Step Guide

• A clear regulatory framework overseen by CySEC needs to be traversed in order for businesses to successfully obtain a crypto license in Cyprus. This structure adheres to the AML/CFT rules within the EU. In a way, these apply to money laundering as outlined in the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007. There are three categories for which the crypto license exists.  

• Each category has different capital requirements, and due to this consideration, companies have to weigh their options on what license they would need to operate within the country. A corporate tax rate of 12.5% with one of the most attractive rates in Europe is available when a business incorporates in Cyprus. The Cypriot government actively supports an exciting cryptocurrency ecosystem, which promotes innovation and foreign investment, making it even more attractive to those seeking to obtain a crypto license in Cyprus. 

Steps to obtain a crypto license in Cyprus 

A Crypto operator wishing to operate or establish a cryptocurrency venture in the country must be registered as a financial services provider. The requirements and steps to follow may vary according to your business goals. Tetra Consultants has summarized the primary steps in acquiring a Cyprus Crypto License. 

Step 1: Formation of a Cyprus entity 

• For new businesses planning to provide services as Crypto Asset Service Providers, registration with the Cyprus Securities and Exchange Commission (CySEC) is mandatory before commencing operations in or from Cyprus. Businesses already existing, engaged significantly in crypto assets, must apply and comply with the AML/CFT laws. 

• Tetra Consultants will guide you in forming a legal entity in Cyprus by telling you which is the optimal structure, paid-up capital requirements, local economic substance criteria, timelines, and relevant cryptocurrency regulations. Our team will conduct rigorous due diligence on your management and shareholders, ensuring all your KYC documents and incorporation paperwork are in order. Once this is done, we shall register company in Cyprus with the local Companies Registry and issue you with corporate documents such as the Certificate of Incorporation and Memorandum and Articles of Association. 

• We shall also provide services for international trademark registration services to protect your brand name in foreign countries. 

Step 2: Corporate bank account opening 

• Tetra Consultants will then proceed with corporate bank account opening with a reputable financial institution within 4 weeks from the incorporation of the company, and deposit therein the minimum paid-up capital required for the license. 

Step 3: Preparing the license application and required documents 

• We then prepare the necessary documentation for an application for a license. This can include a business plan that is as detailed as possible, financial statements, a current AML/CFT policy, and a current insurance policy, which are all currently under the local regulations. After preparing the documents, we will then share the drafts with you and get them e-signed. 

Step 4: Meeting local economic substance requirements 

• To fulfill the requirements of CySEC, your company must demonstrate local economic substance, such as a registered address and employees on the island. Tetra Consultants will ensure compliance with these conditions by participating in the hiring process for local employees with proper qualifications, such as a compliance officer. Our HR team will screen candidates and conduct pre-screen interviews so that you can select the best candidate for your needs. Once we choose the candidate, we will issue an employment contract highlighting what was agreed between both parties. 

• In addition, we shall provide you with a list of offices available indicating aspects such as rental costs, location, and office size to help make an appropriate choice. Having chanced on the right office, Tetra Consultants will draft the leasing agreement for signature. 

Step 5: Filing the license application 

• Once all the steps given above are completed, Tetra Consultants will submit your application to the relevant regulatory authorities. You may be called for a meeting with the regulator as per request. We shall stand by you to prepare you for such a meeting and then follow up the procedure as may be demanded thereafter. 

• After all formalities are complied with, the Cyprus Crypto License is issued to your company, and you can finally start your activities within the timeframe to keep your license in force. 

Requirements to obtain a crypto license in Cyprus 

• Establish a company in Cyprus with a Board of Directors consisting of at least four members, including a minimum of two executive directors with residency requirements. 

• The directors must receive approval from CySEC, demonstrating their knowledge and experience in the relevant field and passing the fit and proper assessment. 

• A fully operational office must be set up within Cyprus, and local staff must be employed on a full-time basis to fulfill the company’s key functions. 

• Implement comprehensive policies and procedures that comply with the Law and Directive for the Prevention and Suppression of Money Laundering and Terrorist Financing. 

• Establish effective internal control systems to ensure the smooth operation and functionality of the company. 

• Develop robust governance structures with transparent and clearly defined reporting lines and responsibilities. 

Conclusion 

• Obtain a crypto license in Cyprus with the help of Tetra Consultants. We will make the challenging regulatory process easier and on schedule for getting you into compliance your business forward to be more successful. Our professional team of experts will guide you through each phase of the process being it company formation and corporate bank account opening, license application, as well as recruitment of local staff. 

• The complete favorable regulatory environment combined with an acute onus on innovation positions comes Cyprus as an exclusive opportunity to cryptocurrencies ventures. Partnering with Tetra Consultants not only simplifies your journey but also allows the business to prepare for sustainable growth within a thriving crypto ecosystem. 

• Contact us to know more about how to obtain a crypto license in Cyprus and our team will revert back in 24 hours.