Cyprus is one of the EU’s most active jurisdictions for crypto-asset service providers — which also means one of the more closely supervised.
Crypto Asset Service Providers operating in or from Cyprus must register with CySEC under the Prevention and Suppression of Money Laundering and Terrorist Financing Law.
Cyprus is phasing its national CASP regime into the EU-wide Markets in Crypto-Assets Regulation as it comes fully into force.
CySEC assesses the fitness and probity of CASP beneficiaries and management, alongside ongoing risk-based monitoring.
CySEC has taken real enforcement action in this space, including suspending the operations of a major crypto-focused investment firm pending compliance review.
Operating as a CASP in or from Cyprus without registering with CySEC carries real regulatory and potential criminal exposure.
Even registered CASPs can face enforcement action where anti-money-laundering controls are found deficient.
Foreign authorities pursuing crypto fraud suspects located in Cyprus typically proceed through the EAW or standard extradition framework.
Cyprus-licensed firms operating across the EU under passporting rights can face scrutiny from multiple national regulators at once.
In most cases, yes \u2014 CASPs providing services in or from Cyprus must register under the AML/CFT Law.
Cyprus is transitioning its national regime into the EU-wide MiCA framework, which will eventually replace the current national registration approach.
Yes, following the same EAW or Fugitive Offenders Law process as any other extradition request.
Speak with us confidentially before responding to CySEC or a foreign regulator.