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Cyprus: crypto & digital assets regulation

Regulated

Cyprus regulates crypto under MiCA via CySEC; CBN handles AML; no local capital floor yet

Lead regulator
Cyprus Securities and Exchange Commission (CySEC)
Also involved
Central Bank of Cyprus (AML/CFT supervision) · MOKAS (Financial Intelligence Unit)
Core law
EU Regulation 2023/1113 (MiCA)
Entry capital
—
Approval timeline
Transitional registration until 1 July 2026; standard authorization timeline unknown
Customer assets
Segregation required under MiCA governance rules
Data protection
GDPR · Cyprus Data Protection Commissioner
Sandbox
No

Cyprus has adopted the EU Markets in Crypto-Assets (MiCA) Regulation, with the Cyprus Securities and Exchange Commission (CySEC) as the primary supervisor for Crypto-Asset Service Providers (CASPs). The Central Bank of Cyprus (CBC) oversees Anti-Money Laundering (AML) compliance for these entities. The regulatory framework is currently in a transitional phase, requiring pre-existing providers to register or apply for authorization by July 2026. While MiCA sets EU-wide standards, specific national capital requirements for the lowest tier are not detailed in the provided documents.

Which licence do you need?

Your activityRequirementCapitalTimelineAuthority
Exchange / trading platformLicenceCrypto-Asset Service Provider (CASP) Authorization[1][2]

Requires MiCA authorization; transitional registration available until July 2026.

——CySEC
Custody of client assetsLicenceCrypto-Asset Service Provider (CASP) Authorization[1]

Custody is a core CASP service under MiCA; requires CySEC authorization.

——CySEC
Token issuance / public offeringLicenceAsset-Referenced Token (ART) or E-Money Token (EMT) Issuer Authorization[3]

Governance and recovery plans must follow EBA guidelines adopted by CySEC.

——CySEC
Broker-dealer / OTC deskLicenceCrypto-Asset Service Provider (CASP) Authorization[1]

Trading platform operations fall under CASP licensing.

——CySEC
Stablecoin issuanceLicenceAsset-Referenced Token (ART) Issuer Authorization[3]

Stablecoins are regulated as ARTs or EMTs under MiCA; strict governance required.

——CySEC
Crypto payments acceptanceLicenceCrypto-Asset Service Provider (CASP) Authorization[4]

Crypto payment services require CASP status; Travel Rule applies.

——CySEC
Mining / staking servicesUncertainverify with regulator

MiCA does not explicitly cover mining/staking; status unclear in provided docs.

———
Advisory / portfolio managementLicenceInvestment Firm or CASP Authorization

Crypto-asset advisory may require investment firm license or CASP status.

——CySEC

New — what changed recently

  • 2025-08-01CBC Directive for Prevention of Money Laundering and Terrorist Financing 2025 — Established comprehensive AML/CFT requirements for obliged entities, including specific controls for crypto-assets.[5]
  • 2024-12-31Transitional Period for CASPs under MiCA Article 143(3) — Extended transitional period for pre-existing providers to submit evidence of prior activities until 1 July 2026.[1]
  • 2024-12-27CySEC Circular C675: EBA Guidelines on Reporting Obligations — Implemented EBA guidelines on Travel Rule and reporting obligations for CASPs, effective 30 December 2024.[4]
  • 2024-11-21CySEC Adoption of EBA Guidelines on Governance for ART Issuers — Adopted EBA guidelines specifying governance and risk management requirements for Asset-Referenced Token issuers.[3]
  • 2024-11-15CySEC Circular C665: 2023 Risk Based Supervision Framework — Mandated electronic submission of the RBSF-CASP form for 2023 reporting period by December 20, 2024.[6]

Market-entry checklist

  1. 1Register with CySEC under MiCA Transitional PeriodSubmit evidence of prior activities to maintain operations until 1 July 2026 if operating pre-MiCA.
  2. 2Implement Travel Rule ProceduresAdopt risk-based procedures for verifying originator and beneficiary data as per EBA guidelines.
  3. 3Establish AML/CFT GovernanceAlign internal controls with the 2025 CBC Directive for prevention of money laundering and terrorist financing.
  4. 4Submit Risk Based Supervision FrameworkFile the RBSF-CASP form electronically via the Transaction Reporting System for the relevant reporting period.
  5. 5Develop ART Recovery PlansIf issuing stablecoins, create recovery plans following the adopted EBA guidelines for format and content.

Sources

  1. Transitional period for crypto-asset service providers under MiCAR Article 143(3) · 2024-12-31
  2. Notification of crypto asset services under article 60 of MiCA · 2024-07-31
  3. CySEC Adoption of EBA Guidelines on Governance Arrangements for Asset-Referenced Token Issuers · 2024-11-21
  4. CySEC Circular C675: EU Regulation 2023/1113 and EBA Guidelines on Reporting Obligations for Crypto Asset Service Providers · 2024-12-27
  5. Central Bank of Cyprus Directive for the Prevention of Money Laundering and Terrorist Financing 2025 · 2025-08-01
  6. CySEC Circular C665: Electronic Submission of 2023 Risk Based Supervision Framework Information for CASPs · 2024-11-15
This guide is compiled automatically from 6 primary-source documents published by Cyprus's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.