CySEC releases its CASP policy
Cyprus Securities and Exchange Commission (CySEC), the anti-money laundering and counter-terrorist financing (AML/CFT) supervisor for crypto-asset operations undertaken in or from Cyprus, has released its policy statement (PS-01-2021) on Crypto Asset Services Providers (CASP).
With PS-01-2021, CySEC calls Crypto Asset Services Providers (CASP), within the meaning of the Prevention and Suppression of Money Laundering (AML) and Terrorist Financing (CFT) Law, that provide services in or from Cyprus, to formally register with CySEC. In addition, to the AML/CFT Law, the applicable regulatory framework is comprised of the CySEC Directive for the register of Crypto-Asset Services Providers and the CySEC directive for the prevention and suppression of money laundering and terrorist financing.
New, existing and already EEA registered CASP
CySEC further clarifies that
- New businesses must submit an application to register with CySEC before commencing their operations in or from Cyprus.
- In relation to all services or activities undertaken or intended to be undertaken in Cyprus, involving Cypriot residents, including incorporated or unincorporated entities based in Cyprus;
- any CASP established in the EEA and registered with the respective AML/CFT national supervisor must submit a notification to CySEC to offer their crypto-assets in Cyprus,
- these CASPs must provide evidence in relation to their valid registration for each service or activity,
- and in cases where these services or activities are not covered by the framework that governs their CASP registration for AML and CFT purposes, an application should be submitted for registration as a CASP with CySEC.
- Existing businesses that demonstrate a material existing crypto-asset activity will need to submit an application before the end of October 2021 and be fully compliant with the AML/CFT Law and the Directives issued according to the AML/CFT Law.
Classes of crypto-asset services and activities, their initial capital and registration fees
Please find details on the initial capital required per class of crypto-asset activity and service, along with the registration and renewal fees for all three classes in the table below.
| CASP Class | Type of crypto-asset activity and service | Initial Capital |
|---|---|---|
| Class 1 | CASP that provide investment advice | 50,000 EUR |
| Class 2 | CASP that provide investment advice and/or any of the following services: • reception and transmission of client orders • execution of orders on behalf of clients • exchange between crypto-assets and fiat currency • exchange between crypto-assets • participation and/or provision of financial services related to the distribution, offering and/or sale of crypto-assets, including the initial offering • placement of crypto-assets without firm commitment • portfolio management. | 125,000 EUR |
| Class 3 | CASP that provide investment advice and/or any of the following services: • reception and transmission of client orders • execution of orders on behalf of clients • exchange between crypto-assets and fiat currency • exchange between crypto-assets • participation and/or provision of financial services related to the distribution, offering and/or sale of crypto-assets, including the initial offering • placement of crypto-assets without firm commitment • portfolio management and/or any of the following services: • administration, transfer of ownership, transfer of site, holding, and/or safekeeping, including custody, of crypto-assets or cryptographic keys or means enabling control over crypto-assets • underwriting and/or placement of crypto-assets with firm commitment • operation of a multilateral system, which brings together multiple third-party buying and selling interests in crypto-assets in a way that results in a transaction. | 150,000 EUR |
| Registration and renewal fees for all classes | 10,000 EUR for the examination of an application 5,000 EUR annual renewal fee from year 2 onwards |
How SALVUS can help you Register as a CASP
Our Crypto-Assets team at SALVUS has been at the forefront of crypto-assets development in the European Union for several years, publicly speaking at events and producing thought leadership. This, accompanied by our experience in successfully submitting applications to CySEC for investment firms and investment funds, enable us to handle the rules of your CASP registration in a straightforward manner.
The rules included in the CASP regulatory framework by CySEC relate to:
- The fitness and probity of the CASP beneficiaries and persons holding a management position;
- The conditions in relation to CASPs registration;
- The organisational and operational requirements;
- Performing Know Your Client and other client due diligence measures;
- Drawing the economic profile of clients;
- Identifying the source of client funds;
- Monitoring the clients’ transactions;
- Identifying and reporting suspicious transactions;
- Undertaking a comprehensive risk assessment in relation to clients’ activities and take proportionate measures per client, activity and crypto-asset in question.
We are already working in helping new and existing CASP that provide services in or from Cyprus submit a dully completed application form, along with relevant questionnaires and any additional information and required evidence.
We are also in a position to help CASPs established in the EEA and registered with the respective AML/CFT national supervisor in relation to all crypto-asset services or activities undertaken or intended to be undertaken in Cyprus, to submit the relevant notification form to CySEC.
SALVUS can contribute to your crypto-asset business success.
We have a dedicated team on Crypto-Assets regulation and compliance, which has been leading the discussion on cryptos regulation and our stellar track record of applications to CySEC, enable us to successfully complete your Crypto-Asset Services Provider (CASP) registration.
Please contact us at info@salvusfunds.com to request more information and to ask our Crypto-Asset team any questions on CASP registrations.
#StayAhead
Should you be interested to find out more about crypto-assets, blockchain, or Anti-Money Laundering (AML), please visit our selected previously published articles below:
- Cyprus, CySEC Crypto-Assets Services Providers
- Bitcoin, cryptos and blockchain
- Digital Finance Strategy, Markets in Crypto Assets Regulation and More
- Security Tokens and Asset Tokenisation in 2020
- 2020 & The 6th Anti-Money Laundering Directive (AMLD6)
- The Next Regulatory Regime of Anti-Money Laundering (AMLD5)
The information provided in this news item is for general information purposes only. You should always seek professional advice suitable to your needs.
