Cyprus — CySEC licence.
The Cyprus Securities and Exchange Commission provides EU-passportable licences for crypto and forex operators under MiCA and MiFID II.
A considered route,
not a shortcut.
This jurisdiction rewards operators who treat the application as the start of a supervisory relationship.
When this is the right choice
When to consider an alternative
Permissions under
one Act.
Choosing the right tier and scope is the most consequential decision in the application.
Crypto-Asset Service Provider (CASP)
CySEC's MiCA-aligned CASP authorisation covers crypto exchange, custody, and advisory services. Cyprus is one of the first EU member states to operationalise the MiCA CASP framework.
Cyprus Investment Firm (CIF)
The primary EU investment firm licence covering FX, CFDs, securities brokerage, and portfolio management. CIF licences passport across all EU member states under MiFID II.
Alternative Investment Fund Manager (AIFM)
Covers fund management, private equity, digital asset funds, and alternative investment vehicles. Popular with crypto hedge funds and tokenised asset structures seeking EU AIF status.
Phases to licence grant.
Cyprus entity and substance
Months 1—2Cyprus company incorporated, registered office established, senior management appointed (at least two Cypriot-resident executives required for CIF), and initial CySEC pre-application conducted.
Application preparation
Months 2—5Full application assembled: business plan, governance structure, capital adequacy calculations, AML/CFT framework, risk management policies, and fit-and-proper packs for all directors and shareholders.
CySEC review
Months 5—10CySEC conducts formal review including fit-and-proper assessments, AML policy review, and business model assessment. Information requests are common; management interviews may be required.
Licence grant
Months 10—12CySEC licence granted. Ongoing reporting obligations commence: financial returns, transaction reporting, AML submissions, and annual CySEC fees.
Cost and regulatory
burden.
Year-one spend is dominated by substance — resident director, office, compliance officer, external audit — not the licence fee itself.
| Cost item | Amount |
|---|---|
| CySEC application fee | EUR 5,000 — 10,000 |
| Annual supervisory fee | EUR 5,000 — 35,000 |
| Minimum share capital (CIF) | EUR 125,000 — 750,000 |
| Cyprus substance (office, executives) | EUR 50,000 — 120,000 / yr |
| Legal and compliance advisory | EUR 30,000 — 70,000 |
| Year-1 total | ~USD 100K — 250K |
Capital requirements are the primary variable cost — operators requiring dealing-on-own-account permissions must capitalise EUR 750K before licensing. Legal and substance costs are moderate by EU standards. Cyprus's 12.5% corporation tax materially improves post-licensing economics.
What founders
ask before filing.
The questions we get on every diagnostic call. If yours isn't here, raise it in the consultation.
Tell us where
you want to
operate.
Forty-five minutes with a partner. Jurisdiction memo within seven days. No retainer required to start.
No retainer required.