FiveComply GABRIEL STYLLAS Founder & CEO of FiveComply
How to Register with CySEC as a Crypto Asset Service Provider (CASP) The Cyprus Securities and Exchange Commission (“CySEC”) on September 13th, 2021, issued a Policy Statement on the Registration and Operations of Crypto Asset Services Providers (“CASP”), where it outlines the registration requirements and provides additional information about how to register as a CASP. Q When was the concept of Crypto Asset Service Provider (CASP) initially introduced in Cyprus? The concept of Crypto Asset Services Providers was initially 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 CASP. CySEC that is the financial regulator in Cyprus, will be regulating the operation and supervision of the crypto-registry. Q Do crypto assets qualify as financial instruments? Depending on their structure, crypto-assets may, inter alia: i. Qualify as financial instruments under the Investment Services and Activities and Regulated Markets Law, transposing MiFID II (the “Investment Services Law); ii. Qualify as Electronic Money under the Electronic Money Law, transposing EMD2 (the “E-Money Law”); iii. Be a digital representation of value that is neither issued nor guaranteed by a central bank or a public authority. It is not necessarily attached to a legally established currency and does not possess a legal status of currency or money, but is accepted by natural or legal persons as a means of exchange and which can be transferred, stored, and traded electronically, and it does not qualify neither as fiat currency, nor as any of the instruments referred to in points (i) and (ii) above.
GAME CHANGERS Issue #36
Q What should be the next steps of the crypto-asset providers? CASPs that shall provide services in or from Cyprus must submit a duly completed application form, along with relevant questionnaires and any additional information and/or required evidence, in accordance with CySEC’s Announcements on the submission of applications and relevant correspondence, as amended from time to time and also pay the corresponding fee. In addition to the above, an electronic version of the application form (i.e. Form 188-01) should be also submitted at caspregistrations@cysec.gov.cy. CASPs established in the EEA that are registered with one or more EEA National Competent Authorities for AML/CFT purposes in relation to all services or activities undertaken or intended to be undertaken in Cyprus, must submit a notification form at eeacasp@cysec.gov.cy. Q When shall they register? New businesses must register with CySEC before commencing their operations in or from Cyprus. Existing businesses that demonstrate a material existing crypto-asset activity will need to submit an application before the end of October 2021 and be fully compliant with the AML/CFT Law and the Directives issued pursuant to the AML/CFT Law. Q What are the applicable CySEC fees? CySEC registration charges are, as follows: •
•
€10.000 for the examination of an application. Successful applicants will not be required to pay an additional fee for the first year of their registration. €5.000 for the purposes of renewal of registration per year.
Q What are the requirements to apply for a crypto-asset licence?
