The much-anticipated Directive on the Registration of Crypto-Asset Service Providers in Cyprus was published in the Official Gazette and entered into force in Cyprus.
This follows the incorporation of crypto-asset businesses in EU AML legislation under the 5th EU AML Directive and the 5th AML Law in Cyprus.
The Virtual Assets Services Providers that offer services from or in Cyprus must be registered in a registry to be kept by CySEC and will be supervised only in terms of AML issues. Soon we will issue directions of the requirements for the registration of such providers and the approval procedures of the directors and their shareholders.
The said Directive provides, among others, the following:
- Registration procedure & conditions
- Composition of Board – Minimum of 4 Members (2 Executives & 2 Non-Executives)
- Conflicts of interest management and mitigation
- CySEC Fees for registration & Registration renewal fees
- Capital Requirements
This is a major step in the acceptance and greater adoption of cryptocurrency assets but also a step towards greater protection for investors and entrepreneurs in this field.
CySec is expected to soon publish further guidance and a policy statement on the implementation of the above Directive.
Should you wish to find out more contact our team.