At present, Cyprus-based crypto exchanges that wish to provide services both in relation to spot crypto products and financial instruments such as crypto derivatives are subject to dual-licensing under the local AML legislation (the Local CASP Regime) and the traditional investment services regime implementing EU Directive 2014/65/EU (MiFID II). The Cyprus Securities and Exchange Commission (CySEC) administers both regimes.
With the upcoming EU Regulation 2023/1114 on markets in crypto assets (MiCA), effective 30 December 2024, replacing the Local CASP Regime, Cyprus Investment Firms (CIFs) can offer crypto asset services by following a notification process without needing to obtain an additional licence from CySEC. This simplification makes a CIF licence an appealing choice for crypto exchanges that are interested in providing both spot and derivatives crypto-asset products across the European Union and European Economic Area.
If you are interested in getting a CIF licence, explore our in-depth guide here.
If you are unsure whether MiCA may apply to you, you can use our MiCA Assessment Tool to obtain a free preliminary assessment here.
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