Question 1

What is a CASP licence?

Accepted Answer

CASP (Crypto Asset Service Provider) is the authorisation category under MiCA, the EU's Markets in Crypto-Assets Regulation, in force since December 2024. It replaces national VASP registrations and is mandatory for providing crypto services to EU clients.

Question 2

How long does a Cyprus CASP licence take?

Accepted Answer

Realistically 12–18 months from decision to operation: 1–2 months formation, 4–5 months pre-application build, then a 3–6 month CySEC review for a complete application.

Question 3

How much does a CASP licence cost in Cyprus?

Accepted Answer

Regulatory capital of €50,000–€150,000 depending on class, plus €15,000–40,000 legal and advisory, €5,000–15,000 AML framework, ~€10,000 CySEC fees and €2,500 company formation.

Question 4

What are Class 1, 2 and 3 CASPs?

Accepted Answer

Class 1 (€50,000): advisory and order reception. Class 2 (€125,000): portfolio management and execution. Class 3 (€150,000): custody, exchange operation and P2P trading.

Question 5

Can I passport a Cyprus CASP licence across the EU?

Accepted Answer

Yes. A single CySEC authorisation is passportable to all 27 EU member states via a notification procedure.

Question 6

Is a VASP registration still valid?

Accepted Answer

No. MiCA replaced national VASP frameworks in December 2024. Existing VASPs must transition to full CASP authorisation within their member state's transitional window.

Question 7

Why choose CySEC over other EU regulators?

Accepted Answer

CySEC was among the first to operationalise MiCA authorisations, Cyprus offers 15% corporate tax, English common law and non-dom status for founders.

Question 8

Do CASP founders get tax benefits in Cyprus?

Accepted Answer

Yes. Non-dom status means 0% SDC on dividends (2.65% GeSY applies), a combined effective rate of ~17.65% on extracted profits, and 3.5% IP box on qualifying platform technology income.