5Comply GABRIEL STYLLAS CEO & Founder at 5Comply
Becoming a Crypto Asset Service Provider in Cyprus; Everything You Need to Know Crypto asset service providers is a new concept that was introduced in Cyprus with the transposition of the Fifth Anti-Money Laundering Directive into national legislation. The amended AML legislation was introduced on 25 June 2021 and regulates the digital registry of crypto asset service providers. The Cyprus Securities and Exchange Commission (CySEC) that is the financial regulator in Cyprus, will be regulating the operation and supervision of the crypto-registry as well. Q How is this new legislation important for cryptos? This recent regulatory development is considered of paramount importance because, licensed crypto-asset providers will be able to provide amongst others, regulated cryptocurrency exchange services. This is a very positive step for Cyprus in becoming a key jurisdiction for crypto service providers. We believe that, this development will attract crypto service providers
from all over the world, as registered crypto-providers in Cyprus will be considered credible institutions. So far in Cyprus and in Europe in general, the lack of regulations and guidelines in the crypto-field has imposed legal and regulatory risks for investors, due to inadequate AML/CFT policies adopted in relation to cryptos. The regulation of cryptos marks the beginning of a new era towards the acceptance of digital cryptocurrencies in Cyprus. This will play a critical role on the way Cyprus banks treat cryptos as well. Q What are the requirements to apply for a crypto-asset licence? Initially, to apply for the crypto-licence you need to have an entity incorporated in Cyprus. In addition, four directors will be required; two of them acting as executive and two as non-executive directors. At least three of them must be Cyprus residents. CySEC will
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