In the context of the implementation of pan-EU requirements including crypto-asset service providers (CASPs) under the Fifth Anti-Money Laundering Directive (5AMLD), Cyprus recently updated its definition of obliged entities under the Prevention and Suppression of Money Laundering Law 2007 (AML Law) to bring CASPs into its scope. Moreover, Cyprus authorities have also decided that Cyprus CASPs should become approved and registered with the Cyprus Securities and Exchange Commission (CySEC).
CySEC has recently issued a directive including details outlining the process of registration. According to this, CySEC shall publish, on its website, the CASPs' register. The register must be publicly accessible and must include information such as the commercial name, the legal form and the legal entity identifier of the CASP, its address and its services.
On condition that, the applicant pursuing registration provides all requested information and documents and also ensures that persons holding management positions with the applicant are honest and competent, CySEC will approve registration in the CASPs' register. It is also important to note that in the case of the Board of Directors of the applicant, this must consist of at least 4 persons, of which 2 must manage the business activities of the CASP and 2 must be independent members.
As far as capital is concerned, CASP must at all times comply with capital adequacy requirements; as a minimum, CASPs offering only investment services must comply with the requirements of Common Equity Tier 1 capital as included in arts 26 to 30 of the 575/2013 Capital Requirements Regulation (CRR).
The Directive can be accessed here (currently only in Greek).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
