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CASP License in Cyprus
CASP is essential for companies that want to operate legally with crypto assets in the EU. The license confirms that a company is officially authorized to provide services in the field of digital assets – from cryptocurrency exchange and secure storage to wallet management and conducting transactions on behalf of clients.
Cyprus is popular among cryptocurrency and fintech companies due to its favorable regulatory framework and prompt decision-making on license issuance. A highly developed financial ecosystem on the island also plays an important role, including an extensive network of consultants, auditors, and highly qualified lawyers, among whom are our specialists at Law&Trust. Such an environment allows businesses to integrate easily into the local legal framework, structure internal processes efficiently, ensure business reliability, and successfully compete on the global stage.
Contents
What is a CASP License
CASP (Crypto Asset Services Provider) is a license obtained by companies operating in the crypto asset sector. The license confirms the legality of business operations and compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) requirements, while also ensuring client protection and transparency of operations. CASP licensing is aligned with FATF (Financial Action Task Force) recommendations and regulated under the EU MiCA (Markets in Crypto-Assets) framework by CySEC.
All companies dealing with digital assets must obtain CASP status. These services include: exchanging cryptocurrencies for fiat or other crypto assets, custody and management of crypto assets on behalf of clients, conducting transactions for third parties, and participating in the placement or sale of crypto assets. Companies providing services without a license risk fines and other sanctions.
Requirements for Companies
Activities of companies with a CASP license are regulated under the European MiCA (Markets in Crypto-Assets) standard. The Cypriot Securities and Exchange Commission (CySEC) is responsible for granting the relevant status.
Requirements for applicants
- Impeccable business reputation of beneficiaries and management, who must have the necessary skills to operate a crypto asset business.
- Internal AML/CFT policies in accordance with FATF recommendations and EU requirements.
- Proof of income.
- Minimum share capital (from 50,000 EUR).
- Presence of an office on the territory of Cyprus.
Types of CASP Licenses
- CASP Class 1 – Basic Services: Companies may manage a portfolio of crypto assets and place them without a firm repurchase obligation. Suitable for small startups not operating exchange platforms. Minimum share capital – 50,000 EUR. Services include: execution of orders on behalf of clients; placement of crypto assets; providing crypto transfer services on behalf of clients; receiving and transmitting crypto orders; crypto asset consulting; and portfolio management of crypto assets.
- CASP Class 2 – Extended Services: Holders can store crypto assets or access keys on behalf of clients, exchange them, and conduct operations with tokens. Minimum share capital – 125,000 EUR. Suitable for crypto exchanges, custodial services, and OTC platforms. Services include: custody and administration of crypto assets on behalf of clients; exchange of crypto assets for fiat; and exchange of crypto assets for other crypto assets.
- CASP Class 3 – Full License: In addition to the services of Classes 1 and 2, these companies are allowed to operate trading platforms. Minimum share capital – 150,000 EUR. Authorized to provide Class 2 services and operate crypto trading platforms.
CASP License Acquisition Procedure
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Register a Company in CyprusThe first step to obtaining CASP status is to register a company in Cyprus. Our professional lawyers can assist with this process.
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Determine the CASP License ClassIdentify what crypto-related activities the company will perform. Choose among the classes defined by CySEC.
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Collect and Prepare Required DocumentsLaw&Trust can assist you with collection, notarization, apostille, and translation of documents.
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Submit the Application to CySECAfter determining the license class and preparing internal documentation, the applicant must appoint key responsible persons and submit documents to CySEC.
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CySEC Review and DecisionUpon a positive CySEC decision, the CASP license is issued.
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Issuance of the CASP LicenseThe company receives official CASP authorization, allowing it to legally conduct crypto asset activities.
Required documents
- Business plan
- AML/CFT policies and KYC procedures
- Internal control and risk management system
- Proof of funds origin
- Information on ultimate beneficiaries and directors
- Office lease agreement or address confirmation
Our Services
Law&Trust provides comprehensive support at all stages of obtaining a CASP license in Cyprus and other jurisdictions. We offer professional consultations, help choose the optimal jurisdiction for your business, assist with company registration, and prepare a full set of documents.
Our services include:
- Consultation on CASP license acquisition;
- Company registration in Cyprus;
- Preparation of a full application document package;
- Support during submission and interaction with regulators;
- Appointment of nominee directors and AML staff;
- Ensuring full compliance with regulatory requirements.
If you plan to develop your project in Europe, legal assistance is essential. Our experts help select the optimal solution and guide you at every stage, from idea to license acquisition and successful business launch.
