CySEC Issues Policy Statement on Registration and Operations of Crypto Firms

The Cyprus Securities and Exchange Commission (CySEC) has published a policy statement on the registration and operations of Crypto Asset Services Providers (CASP).

Earlier in June, CySEC has issued a directive about the registration and operating conditions​ of providers of services related to cryptocurrencies. In the directive, the Cypriot regulator detailed a series of procedures to follow to comply with the recent transposition of AMLD5 measures.

In the newly published statement, CySEC pointed that depending on the structure of the businesses, the crypto assets will either qualify as financial instruments under the Investment Services and Activities and Regulated Markets Law or as Electronic Money under the Electronic Money Law.

In addition, the crypto-assets can be a digital representation of value that is neither issued nor guaranteed by a central bank or a public authority.

CySEC said that CASPs operating from Cyprus must be registered with CySEC in order to be able to provide services and/or perform activities in relation to crypto-assets and will be regulated by CySEC under the Cumulative CASP rules.

Moreover, the regulator stated that it will commence to evaluate applications from existing or prospective CASPs and have encouraged others to consult PS-01-2021.