In June, 2021 the Cyprus Securities and Exchange Commission (“Cysec”) issued the Directive for the registration of Crypto Asset Service Providers (“CASPs”) and, for the first time, defined the “crypto – asset” as an asset with a digital value, which is not issued or guaranteed by a Central Bank or a Public Authority.
In light of this, the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 to 2021 (“Law”) makes the first step towards the regulation of crypto – assets’ related activities and sets the obligation to CASPs to become approved / registered in the relevant registry with Cysec.
Among other noteworthy provisions of the Directive are the following:
- The register is compulsory for any CASP operating from Cyprus, regardless of their registration in another relevant registry of another E.U. member for these services;
- Cysec is obliged to respond within six (6) months;
- Upon approval of the Application, Cysec shall have publicly available this information for each CASP: Name, registration numberr, LEI, registered address, website and list of the related services;
- The Management Body of each CASP must be highly competent, trustworthy, enjoy good reputation and have robust skills / knowledge;
- The CASP must have systems and control mechanisms to ensure the smooth operation of itself;
- It is necessary for the CASP to possess its own funds and there are fees involved for the successful processing of the relevant Application;
- There are multiple provisions for the removal of a CASP from the registry of Cysec.
For any clarifications related to the above Directive and / or anything related to Financial Services Law please contact us via email at email@example.com or via telephone (00357) 25 – 361333.