Crypto Asset Service Provider (CASP)

Crypto Asset Service Provider - CASP

How to Obtain your CASP License:

Yiorkas Law serves as your premier destination for comprehensive legal and compliance assistance concerning the Licensing of Crypto Asset Services Providers (CASP). Our Team who excel in guiding clients through the intricate landscape of CASP licensing regulations. We are dedicated to ensuring that your compliance needs are met with precision, safeguarding your interests every step of the way. With our expertise, you can confidently navigate the complexities of CASP licensing, allowing you to focus on your core objectives while remaining compliant with regulatory standards.

Introduction:

To tackle ML/TF risks from crypto-assets in the EU, AMLD5 expanded to cover “custodian wallet providers” and “virtual currency-to-fiat exchange providers” as obliged entities. However, since its adoption in May 2018, evolving crypto-space has introduced new or worsened existing risks.

The updated AML/CFT Law, in line with CySEC’s CP-01-2019, includes Crypto Asset Services Providers (CASPs) as obliged entities, subjecting them to AML/CFT obligations. CASPs operating in or from Cyprus must register with CySEC, except those domiciled in another EEA Member State, registered with a relevant EEA National Competent Authority under AMLD5 transposition.

On November 3, 2023, the Cyprus Securities and Exchange Commission (CySEC) introduced Directive R.A.D 343/2023, commonly known as the CASP Amending Directive, which was officially published in the Cyprus Official Gazette.

This directive aims to enhance the regulations outlined in the existing CySEC CASP Directive of 2021, focusing on the Prevention and Combating of Money Laundering from Illegal Activities within the realm of crypto-asset service providers (CASP).

Key amendments introduced by the CASP Amending Directive include:

Clarification of the criteria for assessing the "good reputation" of individuals in managerial positions or those holding shares or benefiting from CASPs registered with CySEC.
Explicit mention of factors affecting the "integrity" of such individuals, including convictions or prosecutions for specified criminal offenses, as outlined in the CySEC CASP Directive, and their inclusion in sanction lists.
Expansion of the categories of offenses deemed particularly significant as per the CySEC CASP Directive.

Who is considered as a Cypto Asset Service Provider known as CASP?

Under the Article 2 of the Prevention and Suppression of Money Laundering and Terrorist Financing Laws of 2007-2021, a Crypto Asset Services Provider means;

«Crypto Asset Service Provider» or «CASP» means a person who provides or exercises one or more of the following services or activities to another person or on behalf of another person, which do not fall under the services or activities of the obliged entities mentioned in paragraphs (a) to (h) of article 2A:

Exchange between crypto assets and fiat currencies;
Exchange between crypto assets;
Management, transfer, holding and/or safekeeping, including custody, of crypto assets or cryptographic keys or means which allow the exercise of control over crypto assets;
Offering and/or sale of crypto assets, including the initial offering; and
Participation and/or provision of financial services regarding the distribution, offer and/or sale of crypto assets, including the initial offering;

3 Classes Categories for CASPs

Class 1

Type of crypto-asset activity

That provide investment advice.

Initial Capital Requirement

€50.000

Class 2

Type of crypto-asset activity

Providing the service referred to in Class 1 and/or any of the following services:

reception and transmission of client orders
execution of orders on behalf of clients
exchange between crypto-assets and fiat currency
exchange between crypto-assets
participation and/or provision of financial services related to the distribution, offering and/or sale of crypto-assets, including the initial offering
placement of crypto-assets without firm commitment
portfolio management.

Initial Capital Requirement

€125.000

Class 3

Type of crypto-asset activity

That provide any of the services referred to in Class 1 or 2 and/or:

reception and transmission of client orders
execution of orders on behalf of clients
exchange between crypto-assets and fiat currency
exchange between crypto-assets
participation and/or provision of financial services related to the distribution, offering and/or sale of crypto-assets, including the initial offering
placement of crypto-assets without firm commitment
portfolio management.

Initial Capital Requirement

€150.000

How We Start in 5 Simple Steps:

Step 1

1. Class Category

Choose which of the above Class Categories your Services fall under.

Step 1

Step 2

2. Plan of Action

Prepare a detailed Plan of Action, including inter alia:

- Amount of Capital to be Injected into the CASP;
- Work Force Required in accordance with your Objectives;
- Geographical Areas of Market Target;
- Expected Financial Position within the first three years of Operation.

Step 2

Step 3

3. Register a Cyprus Company

Tailored-Made Corporate Structure for your Licensed CASP.

Read More Here on How to Register your Cyprus Company in less than 10 Working Days!

Step 3

Step 4

4. Internal Policies

Establish the Required Internal Policies, mainly concerning the basic principles under the AML Legal Framework.

Step 4

Step 5

5. Application Form

Finalize and Submit a Duly Completed Application Form, along with its Supporting Documents.

Step 5

Important Note: Rest Assured that Yiorkas Law will guide you in detail through all the process of tha above Stages, as well as during the post License Supervision and Monitoring.