Crypto License in Cyprus – A Complete Guide (2025)

Introduction

Cyprus has become one of the leading destinations for cryptocurrency businesses due to its EU-compliant regulatory framework, low corporate taxes, and established financial infrastructure. The country provides a structured licensing process through the Cyprus Securities and Exchange Commission (CySEC), allowing Crypto-Asset Service Providers (CASPs) to legally operate within the European Union (EU).

With the implementation of the Markets in Crypto-Assets Regulation (MiCA), Cyprus is aligning its crypto regulations with EU-wide standards, ensuring legal certainty, investor protection, and cross-border access.

Why Choose Cyprus for Your Crypto Business?

  • MiCA Compliance & EU Recognition – A CySEC license enables companies to operate across the EU under the passporting system.
  • Favorable Tax Regime – A 12.5% corporate tax rate, among the lowest in the EU.
  • Established Financial Infrastructure – Access to banking, payment processing, and investment networks.
  • Regulatory Clarity – A well-defined framework supporting crypto exchanges, custodial services, and token offerings.

 

 

 

Comprehensive Service Packages for Establishing a Crypto-Licensed Company in Cyprus

Custom Package upon request

  • ✔ Free consultation with FinTech lawyers
  • ✔ Guidance and information on licensing requirements
  • ✔ Turnkey Company Formation in Cyprus
  • ✔ Registered legal company address for 1 year
  • ✔ Registration as CASP with the Regulator
  • ✔ Full communication with the regulator for obtaining a CASP license
  • ✔ Corporate documents
  • ✔ Extended AML/KYC policy implementation
  • ✔ Legal Support throughout the entire project
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Additional services available upon request

  • ✔ Assistance in hiring AML/MLRO officers
  • ✔ Translated and apostilled corporate documents
  • ✔ Local accounting filing services
  • ✔ Assistance in hiring compliance officers and directors
  • ✔ Business plan
  • ✔ Legal framework for launching Your Token
  • ✔ Opening of corporate account
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Ready-Made solution upon request

  • ✔ Registered company
  • ✔ Registered legal company address for 1 year
  • ✔ Active license
  • ✔ Corporate documents
  • ✔ Assistance with transfer of ownership
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Types of Crypto Licenses in Cyprus

CySEC offers three classes of Crypto-Asset Service Provider (CASP) licenses, depending on the scope of services:

  • Class 1 – Provides investment advice on crypto-assets.
  • Class 2 – Includes order execution, trading on own account, and portfolio management.
  • Class 3 – Covers all Class 1 and 2 services, plus the operation of a multilateral trading facility (MTF) and custodial services.

Step-by-Step Process to Obtain a Crypto License in Cyprus

1. Register a Company in Cyprus

Establish a Limited Liability Company (LLC) as the legal entity for your crypto business.

  • Timeline: 5 – 10 business days
  • Cost: Varies based on legal and administrative fees

2. Open a Corporate Bank Account

A business account is required to deposit the minimum share capital and process transactions.

  • Timeline: Varies by bank and compliance requirements
  • Cost: Bank fees apply

3. Meet Capital Requirements

CASPs must deposit the minimum required capital before submitting their application:

  • Class 1 License: €50,000
  • Class 2 License: €125,000
  • Class 3 License: €150,000

4. Implement AML/KYC Compliance

All licensed CASPs must adhere to AML (Anti-Money Laundering) and KYC (Know Your Customer) requirements, including:

  • Internal risk assessment procedures

  • Transaction monitoring systems

  • Reporting obligations to CySEC

  • Timeline: 5 – 7 business days

  • Cost: Legal and compliance expert fees apply

5. Submit Application to CySEC

A complete application package must include:

  • Corporate structure details

  • Business model and financial forecasts

  • AML/KYC compliance policies

  • Timeline: 3 – 6 months

  • Cost: CySEC registration fees apply

Our Advantages

Fast & Efficient Licensing Process We provide a streamlined application process, ensuring quick approvals and full compliance with CySEC regulations and MiCA standards

Full EU Market Access With a CySEC-issued crypto license, your business gains passporting rights, allowing you to legally operate across all EU member states.

Expert Compliance & Regulatory Support Our team of experienced legal and financial professionals ensures seamless regulatory compliance, helping you navigate AML/KYC, tax, and licensing requirements effortlessly. 🚀

Regulatory Benefits & Challenges

Opportunities:

  • Legal certainty and EU-wide market access for licensed businesses.
  • Institutional investment growth due to compliance with MiCA regulations.
  • Strengthened consumer trust through increased regulatory oversight.

Challenges:

  • Higher compliance costs for startups and small-scale firms.
  • More rigorous audits and regulatory scrutiny from CySEC.
  • Longer approval processes due to increasing regulatory requirements.

Total Time & Cost Overview

  • Estimated Licensing Time: 3 – 6 months, depending on regulatory review.
  • Estimated Costs: Varies based on company setup, compliance, and legal fees.

MiCA Compliance & Future Regulatory Framework

With MiCA now in effect, Cyprus ensures that CASPs licensed under CySEC align with new EU-wide crypto regulations, including:

  • Stronger investor protection and financial transparency.

  • More defined rules for token issuance and custodial services.

  • Unified licensing passporting across all EU member states.

  • Compliance Deadline: December 30, 2025

Conclusion

Cyprus provides a stable, cost-effective, and legally transparent environment for crypto businesses looking to expand within the EU. With MiCA compliance, companies can obtain an official CySEC license, gain investor confidence, and scale operations across Europe.

Next Steps:

  • Register your company and corporate bank account.
  • Implement AML/KYC compliance policies.
  • Submit a CASP license application to CySEC.

Start Your Crypto Business in Cyprus Today

For expert assistance with MiCA compliance and CySEC licensing, contact a regulatory specialist today.

Help center

Frequently Asked Questions (FAQs)

Quick answers to questions you may have. Can't find what you're looking for? Get in touch with us.

    1️⃣Who needs a crypto license in Cyprus?

    Any business providing crypto-related services (exchanges, wallet providers, investment platforms) must obtain a license under CySEC.

    2️⃣ Can a Cyprus crypto license be used across the EU?

    Yes! A CySEC-issued license allows crypto companies to operate in all EU member states under MiCA passporting rules.

    3️⃣ How long does it take to get a crypto license in Cyprus?

    The full process takes 3 – 6 months, depending on compliance approvals and regulatory reviews.

    4️⃣What are the capital requirements?

    ✔️ Class 1 License: €50,000 ✔️ Class 2 License: €125,000 ✔️ Class 3 License: €150,000

    5️⃣ What happens if a company does not comply with MiCA?

    Failure to comply with MiCA by December 30, 2025, may lead to fines, business suspension, or license revocation.

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