Cyprus Crypto Asset (CASP) Licence under MiCA (2026)

If you want to provide crypto asset services in or into the European Union, the rules changed completely at the end of 2024. The old Cyprus national register for crypto businesses has closed, and a single European regime called MiCA now applies. This guide explains what a Crypto Asset Service Provider (CASP) licence is under MiCA, who needs one, the capital you must hold, how long authorisation takes, and how a single Cyprus licence lets you passport across all 27 member states.

What is MiCA and why it replaced the old regime

MiCA is Regulation (EU) 2023/1114 on Markets in Crypto Assets. Because it is a Regulation rather than a Directive, it applies directly in Cyprus without the need for a local transposing law. It creates one harmonised rulebook for crypto asset issuers and service providers across the whole European Union.

The rules for Crypto Asset Service Providers, contained in Title V of MiCA, became applicable on 30 December 2024. From that date, the previous Cyprus regime, under which the Cyprus Securities and Exchange Commission (CySEC) kept a national register of crypto businesses based on the Anti Money Laundering Law, was superseded. CySEC stopped accepting new national registrations on 17 October 2024. Any firm that wants to serve EU clients now needs a full MiCA authorisation, and authorised firms appear on a single register maintained by the European Securities and Markets Authority (ESMA) rather than on a Cyprus only list.

Who needs a CASP licence

Any legal person that provides one or more crypto asset services in or into the European Union on a professional basis must be authorised as a CASP by the competent authority of its home member state before it starts operating. In Cyprus the competent authority is CySEC.

There is an important shortcut for firms that are already regulated. A Cyprus Investment Firm, a bank or certain other authorised entities can provide crypto asset services by giving CySEC advance notification, instead of applying for a fresh CASP authorisation, for services equivalent to those they are already licensed to provide.

The ten crypto asset services

MiCA defines ten crypto asset services. Your authorisation lists the specific services you are permitted to provide:

1. Custody and administration of crypto assets on behalf of clients
2. Operation of a trading platform for crypto assets
3. Exchange of crypto assets for funds
4. Exchange of crypto assets for other crypto assets
5. Execution of orders for crypto assets on behalf of clients
6. Placing of crypto assets
7. Reception and transmission of orders for crypto assets on behalf of clients
8. Providing advice on crypto assets
9. Providing portfolio management on crypto assets
10. Providing transfer services for crypto assets on behalf of clients

Minimum capital by class

A CASP must hold, at all times, permanent minimum capital equal to the higher of the amount for its class under Annex IV of MiCA, or one quarter of the previous year's fixed overheads. The capital must be qualifying own funds, meaning paid up share capital, reserves and retained earnings. Crypto assets held on the balance sheet do not count towards this requirement. The class is set by the highest class service you are authorised for, and the amount is required once, not cumulatively.

The authorisation process and timeline

CySEC assesses a CASP application in two stages. It has 25 working days to confirm that your application is complete, and then 40 working days to assess it and issue a reasoned decision. That gives a statutory path of roughly 65 working days, or about three months, from a complete file, although the clock can be paused while CySEC asks for further information. In practice, once you include preparation and any completeness cycles, well prepared applicants should plan for a total of six to twelve months.

A complete application includes the legal and shareholding structure of the applicant, a programme of operations scoping each service, a business plan with financial projections, governance arrangements and fit and proper documentation for the board and any qualifying shareholders, proof that the required own funds are held with a Cyprus or EU credit institution, anti money laundering policies with a compliance officer, and information and communication technology and security arrangements aligned with the Digital Operational Resilience Act. CySEC also expects genuine local substance, meaning real management and operations in Cyprus.

One licence, the whole EU

A MiCA authorisation is a European passport. Once CySEC authorises your firm, you can provide the licensed services across all 27 European Union member states, and across the wider European Economic Area, through a simple notification to CySEC, which forwards it to the host regulators. Services can usually begin about 15 working days after that notification. There is no need for a separate authorisation in each country, which is what makes a single Cyprus licence so valuable for a business that intends to serve clients across Europe.

The transition from the old Cyprus register

Firms that were already operating under the previous Cyprus national regime were given a transitional window. Cyprus adopted the maximum transitional period allowed by MiCA, so nationally registered crypto firms could continue operating until 1 July 2026 at the latest. To benefit from that window, an existing firm had to submit a complete MiCA licence application to CySEC by 27 February 2026. A firm that filed a complete application by that date may continue providing its registered services until CySEC grants or refuses authorisation, or until 1 July 2026, whichever comes first. Firms that did not apply had to submit a wind down plan. Providing crypto asset services without a MiCA authorisation is not permitted after 1 July 2026.

Why choose Cyprus for your CASP

Cyprus combines a respected European regulator with a competitive operating environment. CySEC has long supervised investment firms and has built deep experience in financial services authorisation. The island offers a common law based legal system, a large pool of English speaking legal, compliance and accounting professionals, comparatively moderate set up and running costs, and a corporate tax rate of 15% from 2026. For a crypto business that wants a credible European base and a passport into the entire single market, Cyprus is one of the most practical choices.

How we help

Our corporate and financial services team guides crypto businesses through the whole MiCA journey. We advise on the right corporate structure and the level of substance CySEC expects, scope your services against the ten MiCA categories, calculate and evidence your capital requirement, prepare the programme of operations, governance, anti money laundering and operational resilience documentation, and manage the application and questions through to authorisation. Once you are licensed, we handle your passport notifications so you can serve clients across Europe. If you would like to assess your position, contact our team for an initial consultation.