In the context of the implementation of pan-European requirements, including the Directive on Cryptoasset Service Providers (CASP) adopted after the 5th AMLD Directive,

Cyprus recently updated its definition of obligated legal entities under the 2007 Money Laundering Prevention and Suppression Act (AML Law) to include CASP in its scope.

Moreover, the Cypriot authorities have also decided that Cypriot CASPs must be approved and registered by the Cyprus Securities and Exchange Commission (CySEC).

Accordingly, CySEC recently issued a directive detailing the registration process and is publishing the CASP registry on its website. The registry must be publicly available and contain the FOLLOWING information: commercial name, legal form and legal entity identifier CASP, his address and services. Provided that the applicant who is applying for registration provides all the information and documents requested, and ensures that those in leadership positions with the applicant are honest and competent, CySEC will approve the registration in the CASP registry.

It is also important to note that the applicant's Board of Directors must consist of at least 4 people, of whom 2 must manage the business activities of CASP and 2 must be independent members. With regard to capital, the CASP must always comply with the “capital adequacy” requirement; At a minimum, CASPs offering investment services only must meet the Tier 1 capital requirements of ordinary capital as set out in Articles 26-30 of Capital Requirements Regulation 575/2013 (CRR).