CASP Crypto License in Cyprus

Cyprus has positioned itself as a hub for digital asset innovation in the Mediterranean. As of 30 December 2024, all crypto businesses operating in or from Cyprus must obtain a Crypto-Asset Service Provider (CASP) licence under the EU’s Markets in Crypto-Assets Regulation (MiCA). The Cyprus Securities and Exchange Commission (CySEC) is the designated authority overseeing licensing, compliance, and supervision.

Why choose Cyprus?

• Strategic location – Cyprus offers gateway access to the EU, Middle East, and North Africa
• Crypto-friendly environment – CySEC was one of the first to regulate VASPs under AMLD5, easing the transition to MiCA
• Attractive tax regime – 12.5% corporate tax rate, with access to 60+ double taxation treaties
• Remote-friendly setup – Full company incorporation and licensing can be completed without travel
• EU-wide passporting – A CySEC-issued CASP licence enables seamless service provision across the EU

Services requiring a CASP licence

Under MiCA, a licence is required for offering:

• Crypto-to-fiat or crypto-to-crypto exchange
• Custody and administration of crypto-assets
• Transfer or execution of crypto transactions
• Trading platform operations
• Portfolio management or investment advice
• Lending, distribution, or placement of crypto-assets

Key licensing requirements

• Cyprus company formation – Private limited company (Ltd) registered in Cyprus
• Local substance – Registered office and at least one executive resident in Cyprus or the EU
• Capital thresholds –
• €50,000 for advisory/agency activities
• €125,000 for exchange/custody services
• €150,000–€200,000 for platform operation and advanced activities
• Fit-and-proper management – All directors and UBOs must present clean criminal records and relevant financial/technical experience
• AML/CFT compliance – Detailed procedures aligned with CySEC’s AML Directive, including client onboarding, monitoring, risk scoring, and reporting
• Contact person registration – A compliance officer or designated contact must be registered with CySEC and approved
• Cybersecurity & ICT – Operational resilience, business continuity, and secure systems in place for handling digital assets

Application process & timeline

• Pre-filing consultation with CySEC (optional but recommended)
• Formal application submission under MiCA Article 62
• CySEC timeline: 25 days for completeness check, 40 days for licence decision (extendable)
• Total process duration: 4–6 months depending on documentation and readiness

Ongoing obligations

• Maintain capital adequacy at all times
• Annual submission of financial statements and compliance audits
• Timely reporting of suspicious transactions to the Cyprus FIU (MOKAS)
• Record-keeping for at least five years
• Consumer protection: disclosures, segregation of assets, and complaint procedures

How Demire Inc supports your CASP licence in Cyprus

Ready-made company + CASP licence:

• Incorporation of Cyprus Ltd with pre-registered crypto permissions
• Contact person registration with CySEC
• Local bank account setup
• AML/CFT internal policies and manuals
• Expert consultation on crypto activities

Company formation + CASP licence:

Additional services:

• Recruitment of compliance/MLRO officers
• Accounting and tax filing support
• Post-licensing regulatory and audit assistance

Enter the European crypto market through Cyprus with full MiCA compliance.
Demire Inc provides everything you need to secure your licence and scale your crypto operations confidently.