Establishing a CASP in Cyprus in 2026
The Cyprus Securities and Exchange Commission (CySEC) continues to oversee the licensing and supervision of crypto-asset service providers (CASPs) operating in or from Cyprus. With the implementation of the Markets in Crypto-Assets Regulation (MiCAR) fully effective as of December 30, 2024, CySEC now administers a harmonized EU-wide framework for these entities, ensuring both compliance with anti-money laundering (AML) and operational standards.
This article explores the establishment of a MiCAR CASP in Cyprus in 2026, highlighting its key benefits and essential considerations. The SALVUS Licensing team provides insights regarding the following:
1.Defining a CASP and its scope of services
2. The legal and regulatory framework
3. Importance of CySEC authorisation
4. Steps to obtain CySEC authorisation
5. How can SALVUS assist you?
We regularly share bite-sized insights on LinkedIn such as those found in this article
1. Defining a CASP and its scope of services
A Crypto-Asset Service Provider (CASP) under MiCAR refers to any entity delivering one or more crypto-asset services to clients on a professional basis. These services include:
- Custody or administration of crypto-assets for clients
- Operating trading platforms for crypto-assets
- Exchanging crypto-assets for fiat currency or other crypto-assets
- Executing client orders involving crypto-assets
- Placing crypto-assets or managing their reception and transmission
- Providing portfolio management related to crypto-assets
- Facilitating transfers of crypto-assets for clients
The MiCAR regime aligns crypto-asset services with the investor protection and governance principles familiar under the European MiFID II framework.
Additionally, Cyprus Investment Firms (CIFs) can extend their existing authorisation to provide crypto-asset services, subject to CySEC’s approval. More information can be found in SALVUS’s insights on Offering Crypto-Asset Services Through Your CIF: Key Insights.
2. Legal and regulatory framework
CASPs in Cyprus operate under multiple regulatory instruments, including:
- AML/CFT legislation: Prevention and Suppression of Money Laundering and Terrorist Financing Law 188(I)/2007, as amended by Law 98(I)/2023
- CySEC directives governing CASP registration and ongoing supervision
- MiCAR (EU Regulation 2023/1114), which establishes EU-wide standards for authorisation, capital, governance, and operational requirements
Compliance with these rules ensures the CASP can legally offer services in Cyprus and across the European Economic Area.
3. Importance of CySEC authorisation
CySEC authorisation is mandatory for CASPs that:
- Are to be incorporated in Cyprus
- Are planning to operate professionally from Cyprus
- Provide crypto-asset services to clients in Cyprus without being established in the country, unless already registered in another EU member state
Failing to get authorised exposes the CASP to severe penalties, including fines of up to €350,000, imprisonment of up to five years, or both. Authorisation ensures the provider can continue operations and benefits from EU-wide recognition under MiCAR.
4. Steps to obtain CySEC authorisation
Obtaining a CASP licence requires a structured application and supporting documentation. Core requirements include:
- Business plan detailing: objectives, target markets, governance framework, and financial projections
- Organisational structure demonstrating compliance with MiCAR’s governance standards
- Initial capital categorized according to MiCAR’s three CASP classes:
- Class 1 – €50,000
- Class 2 – €125,000
- Class 3 – €150,000
- AML/CFT policies tailored to the specific risks of the crypto business
- Internal Operations Manual covering operational procedures
- Disclosure of crypto-asset wallets and public keys
- Documentation of IT systems and cybersecurity measures to meet MiCAR operational resilience requirements
5. How can SALVUS assist you?
Cyprus offers a strategic gateway for CASPs under a regulated and EU-compliant framework. The SALVUS Crypto-Assets Licensing team provides end-to-end support, including:
- Advising on the selection of services and business models
- Assisting in the preparation of the business plan, AML/CFT policies, and internal manuals
- Coordinating the submission of all documents and communication with CySEC
- Providing ongoing regulatory compliance and reporting services post-approval
Our experience with multiple successful CASP registrations ensures that clients can navigate the MiCAR authorisation process efficiently and in full compliance with 2026 regulatory requirements.
If you require additional information regarding your CASP’s registration or to discuss further your crypto-business needs, please contact us at info@salvusfunds.com ; our Crypto-Assets Licensing team is ready to answer your questions.
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.