On Friday, 25th of June 2021, Cyprus Securities and Exchange Commission has published the new Directive for the prevention and suppression of money laundering and terrorist financing and the Register of Crypto Asset Service Providers.
The new Directive sets the incorporation of the crypto-asset Register in compliance to the 5th AML Law.
Service providers of crypto assets dealing with exchanges between crypto-assets or exchanges between crypto-assets and fiat currencies or offering wallet custodian and other financial services for crypto-assets, have now been included among the obliged entities who are regulated and are subject to the AML Law.
What is included in the Register:
- Trade Name, legal form and the legal entity identifier;
- Physical Address of the company;
- Services provided;
The Cyprus Securities and Exchange Commission shall review the dully submitted application and revert to the applicant(s) within a period of six (6) months.
Main Conditions for Registration of a Company as Service Provider:
- The Company should submit all relevant information requested.
- All Directors are of good repute, knowledge, skills and experience and dedicate significant time when exercising their duties.
- The Company appoints four (4) Directors in total (two Executive Directors and two Independent Non-Executive Directors)
- The beneficial owners of the Company are honest, of good repute and capable to ensure the that the company shall in in good financial standing.
- The Company maintains a website, has established relevant compliance, risk, corporate governance, data protection policies and procedures.
- The Company ensures that it maintains the required own funds and capital as per the requirements of the Law.
- The Company ensures that the remuneration of the personnel does not create any conflict-of-interest issues.
- The Company ensures that there are in place policies and procedures with regard to operational risks, conflict of interest, business continuity, archiving, data protection and safeguarding of information.
- The Company ensures that there are mechanisms and policies for accounting and internal auditing where this is applicable.
- The Company ensures that the staff is not engaged in many positions which will not allow them the proper exercising of their duties.
- The Company has in place Complains Handing procedures.
- The Company ensures that the staff holds all relevant qualifications, knowledge, experience and are of good repute.
Deletion from the Register
The Company may be removed from the Register if it is dormant (no services in crypto-assets are being provided) for a period of six months. Or has been registered in the Register based on false and/or misleading information or has terminated their services and operations.
The Company should always maintain own funds at least equally with the largest of the following amounts:
- The amount of the initial capital of the below table (depending on the nature of the business activities of the Company) or
- ¼ of the fixed expenses of the Company during the previous year adjusted annually accordingly.
Table referred to in Point 1:
|Service Provider||Services Provided||Initial Capital|
|Category 1||Investment Advice||-|
|Category 2||Reception and Transmission of orders, execution of orders, crypto assets exchange and/or exchange between crypto assets and fiat currencies, participation and/or provision of financial services through transmission, offering and/or selling of crypto assets including initial offering, placing of crypto assets without firm commitment basis, portfolio management.||EUR 125.000|
|Category 3||Companies offering at least one of the services of Categories 1 or 2 and/or one of the following: management, administration, transmission, transfer, retention, custodianship and safekeeping of crypto assets or cryptographic keys or means which allow for the exercise of control in crypto assets, placing of crypto assets with firm commitment basis, operation of multilateral system, where multiple third party buying and selling trading interests in crypto assets are able to interact in a way that results in a transaction.||EUR 150.000|
How we can help
At ConnectedSky, we are happy to provide our licensing and support services to the Companies wishing to apply and register with Cyprus Securities & Exchange Commission (‘CySEC’). Our services include among others:
- Assistance with the completion of the application package and registration of the applicant.
- Advising on the proposed corporate and organizational structure of the applicant.
- Drafting of the relevant manuals (including the Anti-Money Laundering Manual, Internal Operations Manual and any other additional manual relevant to the application).
- Review and legal assistance as to the completion of the questionnaires to accompany the application.
- Assistance with obtaining any additional information and certificates.
- Assistance with the recruitment of qualified Board of Directors and key personnel.
- Filling the application with CySEC and represent the Company before CySEC, addressing any further queries.
- Legal support throughout the application