Open a Cryptocurrency Company in Cyprus

If you want to set up a cryptocurrency company in Cyprus, you must go through several steps, which can be completed with the entire support of our local specialists.

Are cryptocurrencies legally recognized in Cyprus?

Yes. You can buy, sell, and hold cryptocurrencies, as they are recognized by the Cyprus Securities and Exchange Commission (CySEC).

Can I open a fully foreign-owned cryptocurrency company in Cyprus?

Yes. There are no restrictions in this sense.

What are the steps to set up a cryptocurrency company in Cyprus?

The following:

1. prepare the necessary documentation: our specialists in company formation in Cyprus can assist you in gathering these documents;
2. propose a name for the company;
3. submit an application for approval with the Companies Registrar;
4. file the necessary documents with the Registrar of Companies;
5. pay the various fees at the Companies Registrar;
6. open a corporate bank account.

Here is also an infographic on the crypto license:

What is the most suitable legal entity for a cryptocurrency company in Cyprus?

We recommend the private limited liability company, as it is the simplest and fastest to incorporate through our dedicated services. However, you can also opt for a joint stock company.

What is the minimum capital requirement to open a crypto company in Cyprus?

The minimum share capital for a private limited liability in 1 euro, while for a public one, it is around 25,000 euros.

IMPORTANT! You must also consider the minimum licensing capital when opening a crypto business in Cyprus.

Are there any specific requirements that apply to crypto companies in Cyprus?

Yes, to establish such a business in Cyprus, you must:

• ensure a physical office place in Cyprus;
• appoint at least 2 directors, who must pass the CySEC fitness tests;
• appoint an Anti-Money Laundering and Combating Financing of Terrorism officer, who must be a Cyprus resident;
• draft a business plan for licensing purposes.

What types of crypto licenses can I obtain in Cyprus?

The following:

• the Class 1 license, which requires a minimum capital of EUR 50,000 and is issued to provide investment advice related to crypto investment;
• the Class 2 license, for which a minimum initial capital of EUR 125,000 is needed and can be used to complete several activities, such as crypto-to-crypto and crypto-to-fiat currency exchanges, financial services related to initial coin offerings (ICO), distribution, and sale of cryptocurrency, and portfolio management;
• the Class 3 license, which requires the highest capital – EUR 150,000, and under which you can perform activities related to the administration of crypto assets, transfer of ownership of digital coins, custodian services, and operating a multilateral platform for third parties to buy and sell interests in virtual assets.

What are the documents required to apply for a crypto license in Cyprus?

The following:

• the company’s details;
• a detailed description of the activities to undertake;
• information about the shareholders (including beneficial owners, if applicable);
• confirmation of the deposit of the minimum capital for the license in the form of a bank statement (proof of funds is also required);
• the Anti-Money Laundering strategy;
• internal policies related to combating money laundering, know your client procedures, and cybersecurity measures;
• details of the directors and other officers.

Here is also our video on this subject:

How long does it take to start a cryptocurrency company in Cyprus?

It can take up to 9 months for the company formation and licensing procedures to be completed.

What types of crypto businesses are popular in Cyprus?

You can set up various types of cryptocurrency companies, among which:

• initial coin offerings or ICOs, which are very popular in Cyprus at the moment;
• IT companies which rely on cryptocurrency mining activities are also popular;
• companies which install cryptocurrency ATM machines for the exchange of digital coins;
• cryptocurrency exchanges have also started to become widely used in Cyprus;
• crowdfunding companies under which funds are gathered for the launch of cryptocurrencies.

If you have more questions about cryptocurrency in Cyprus, or for assistance in setting up a company in Cyprus, please contact us. You can rely on us for customized company registration services in Cyprus no matter the field you are interested in.