CASP Licensing in Cyprus: Step-by-Step Overview

Obtaining a Crypto-Asset Service Provider (CASP) licence in Cyprus involves a structured application process before CySEC, similar in rigour to authorisation processes for investment firms. Understanding the stages involved helps applicants plan realistic timelines and avoid common delays.

Step 1: Determine the Correct Licence Scope

MiCA lists ten distinct crypto-asset services, from operating a trading platform to providing custody. Applicants must identify precisely which services they intend to offer, since this determines the applicable capital requirements and the depth of documentation required.

Step 2: Prepare the Application File

A CASP application typically requires a detailed programme of operations, a business plan with financial projections, governance and organisational charts, policies on custody, complaints handling, conflicts of interest, ICT security and business continuity, and evidence that directors and qualifying shareholders meet fit-and-proper standards.

Step 3: Submission and CySEC Review

Once submitted, CySEC assesses the completeness of the file before moving to substantive review. The regulator may raise queries or request additional information, so applicants should expect an iterative process rather than a single submission-and-approval event.

Step 4: Authorisation and Registration

Once satisfied, CySEC grants authorisation and the firm is entered onto the register of CASPs maintained by the European Securities and Markets Authority (ESMA), enabling the firm to passport its services across the EEA.

Step 5: Ongoing Compliance

Authorisation is the beginning, not the end. CASPs are subject to ongoing prudential reporting, governance obligations and conduct rules, and must notify CySEC of material changes to their business.

Enalian advises crypto-asset businesses, investment firms and payment institutions on MiCA authorisation, notification and ongoing compliance in Cyprus. If you are planning a CASP application or reviewing your regulatory status, our team can guide you through the process. Get in touch with our team to discuss your specific circumstances.

This article is provided for general informational purposes only and does not constitute legal, tax or regulatory advice. Regulatory requirements are subject to change; readers should seek specific advice on their circumstances before taking action.