Notification of intention of EEA CASP to operate in Cyprus

Firstly, CySEC wants all EEA (European Economic Area) CASP to fill out the form for the purposes of Section 61E(2)(b) of the Prevention and Suppression of Money Laundering and Terrorist Financing Law. The completion of the form acts as notification of intention to register a CASP providing a service in Cyprus.

Secondly, CySEC must be notified of all persons holding a management position, within the meaning of the Prevention and Suppression of Money Laundering and Terrorist Financing law (the “AML/CFT Law”). The list accompanies the application for CASP registration (Form 188-01) and consists of information concerning all persons listed in Annex D thereof. The link to the form can be found here.

Thirdly, CySEC provided a questionnaire for CASP registration application. One may also use the questionnaire to indicate a change in the individuals holding a management position. Furthermore, this form should be completed individually by all persons holding a management position, as well as their related powers and any proxies.

If you intend to be a Crypto Asset Services Provider (“CASP”), that provides services in or from Cyprus, you must formally register with the Cyprus Securities and Exchange Commission (“CySEC”).

If you are a CASP established in the EEA and registered with one or more EEA National Competent Authorities for AML/CFT purposes in relation to all services or activities undertaken or intended to be undertaken in Cyprus (i.e., involving Cypriot residents, including incorporated or unincorporated entities based in Cyprus), you must submit a notification, providing evidence in relation to your valid registration for each service or activity. Where these services or activities are not covered by the framework that governs your registration for AML/CFT purposes, you should apply to be registered as a CASP with CySEC.

Before starting operations in or from Cyprus, new firms must register with CySEC.

Current firms with significant existing crypto-asset activity must apply by the end of October 2021 and be fully compliant with the AML/CFT Law and the Directives issued under the AML/CFT Law.

• Regulatory Framework
• The AML/CFT Law
• The CySEC Policy Statement for the register of crypto asset services providers
• The Prevention and Suppresion of Money Laundering and Terrorist Financing Law of 2007

The regulatory framework includes rules, inter alia, in relation to:

• the CASP recipients' fitness and probity, as well as those in managerial positions
• the terms and conditions of CASP registration
• the needs of the organization and the operations
• performing Know Your Client and other due diligence procedures on clients
• drafting a client's economic profile
• tracing the origins of a client's transactions and keeping track of them
• suspicious transactions must be identified and reported
• conducting a thorough risk evaluation of customers' actions and implementing proportional precautions for each client, activity, and crypto asset in issue.

How we can help

Grant Thornton Cyprus specialized team on Distributed Ledger Technology has thoroughly analysed the recent DLT guidelines to provide the most up-to-date information on regulatory matters relating to crypto assets. If you have any questions on the topics discussed, feel free to contact us directly to find out more details. Our team of experts is ready to assist and help you understand the specifics of legal and regulatory requirements and to concretely consult you in exploring a whole new world of opportunities arising by adopting this innovative technology.