Initial Coin Offering in Cyprus

Cyprus is one of the most appealing financial centers in Europe and the European Union thanks to its taxation system, or better said to the exemptions it offers to companies incorporated here. In the last few years, Cyprus has also emerged as a desired destination for the establishment of Initial Coin Offerings or ICOs which can operate throughout the European Union.

Below, our company formation agents in Cyprus explain how to create an ICO in this country.

Ways of setting up an ICO in Cyprus

There are two ways for launching an Initial Coin Offering in Cyprus:

• -          by opening a Cyprus company;
• -          by setting up an investment fund through which digital coins are offered as investment vehicles.

Our Cyprus company formation consultants can advise on both procedures of launching the ICO.

Creating an ICO by opening a company in Cyprus

The simplest way of launching an Initial Coin Offering is by opening a fintech company in Cyprus. The procedure implies the following steps:

1.        choosing the right type of structure for the business: the limited liability company is recommended for fintech activities, such as ICOs;
2.        registering the chosen business form with the Companies Registrar in Cyprus;
3.        registering the company with the tax authorities in Cyprus, a mandatory step no matter the chosen business form;
4.      applying for one of the licenses issued by the Securities and Exchange Commission (CySec), if the company is set up as a financial company.

IT companies launching ICOs are not requested to register with CySec as long as they do not trade the digital tokens they create.

Launching an ICO through a Cyprus investment fund

The second option for launching an ICO in Cyprus is by establishing an investment fund. In this case, the registration with CySec is mandatory and the business owners must prepare a white paper, which is similar to a prospectus, and file it for approval with the Securities and Exchange Commission.

Creating an ICO under the form of a Cypriot investment fund will also require the registration of an entity which can have a corporate or non-corporate form.

Our local consultants can help you launch an Initial Coin Offering in this country no matter the chosen form, so do not hesitate to contact our experts in company formation in Cyprus.