Cyprus crypto fund · CASP + AIFM · EU passport
Cyprus's CySEC operates BOTH MiCA CASP authorisation (crypto-asset services) AND AIFM authorisation (collective investment management). Combined dual-authorisation lets you run a Cyprus fund investing in crypto + traditional assets, with full EU passport via MiCA Article 65 + AIFMD Articles 32+33.
Free 30-min consultation. Reply within 24h.
— WHAT YOU GET
Cyprus CySEC supervises both MiCA CASP (Regulation 2023/1114) and AIFM (Law 56(I)/2013). A Cyprus Ltd can hold BOTH authorisations, enabling: (a) collective fund investing in crypto + fiat assets, (b) discretionary management of crypto via the CASP authorisation, (c) custody + execution of crypto trades within the fund.
Cyprus AIF investing in qualifying titles (shares, bonds, debentures, certain crypto-assets where treated as securities): Article 9(1)(g) titles exemption — 0% Cyprus tax on portfolio gains. Combined with 15% CIT on management fees + performance fees.
Cyprus management entity: 15% CIT on management + performance fees. If proprietary trading software / platform: IP Box ~3% on platform-derived income. Founder Non-Dom: 0% SDC on dividends from management entity for 17 years.
MiCA Article 65 passport for CASP services across 30 EEA states. AIFMD Articles 32+33 passport for AIFM management + marketing. Combined dual-passport enables seamless EU-wide operations from Cyprus base.
— EVERYTHING INCLUDED
— PROCESS
Identify investment strategy: pure crypto, mixed crypto + fiat, crypto-derivative-overlay, etc. Determine fund vehicle (RAIF / AIF / AIF-LNP) + management entity scope (AIFM-internal or external).
Cyprus Ltd Business tier (10 working days). Pre-application engagement with CySEC for both CASP + AIFM tracks. Senior management + compliance + risk + AML / MLRO hire.
Combined / coordinated submission. CASP timeline 6-12 months. AIFM timeline 4-9 months (sub-threshold internal AIFM) or 6-12 months (full AIFM). CySEC reviews jointly where structures coordinated.
Final authorisation. First-close mechanics. Investor onboarding + AML/KYC. AIF fund launches. CASP-authorised crypto-asset services begin. DAC8 reporting + ongoing MiCA + AIFMD compliance.
Few EU jurisdictions support BOTH CASP + AIFM under one regulator (CySEC). Cyprus is one of them. We coordinate the entire dual-authorisation engagement — entity + substance + applications + ongoing compliance. If we cannot deliver end-to-end, we refer to a specialised firm.
— COMMON QUESTIONS
Pure CASP: discretionary crypto management for individual clients, but NOT collective investment scheme operation. Pure AIFM: collective fund management but traditional assets, with limited crypto-investment scope. HYBRID: collective fund investing in crypto + fiat + derivatives, managed by entity with both authorisations. Comprehensive operational scope from Cyprus base.
Lithuania, Luxembourg, Ireland all support both regimes but typically as separate authorisations / different supervisors. Cyprus's single-supervisor (CySEC) for both regimes is structurally simpler — coordinated review + ongoing supervision. Reduced compliance overhead.
8% flat is a PERSONAL income tax option for crypto trading characterised as business income. Funds (corporate entities) pay standard 15% CIT on fund profits + qualify for titles exemption on portfolio gains where applicable. Personal use by founders of the fund management entity: 8% election available where eligible.
MiCA Title III (ARTs — Asset-Referenced Tokens) + Title IV (EMTs — E-Money Tokens) impose specific issuance + reserves requirements. Most crypto AIFs don't issue stablecoins; they custody / trade them. CASP authorisation covers custody + exchange + trading; separate EMI / stablecoin-issuer authorisation needed for issuance.
MiCA Annex IV CASP: €50k-€150k depending on tier. AIFM: own funds €125k (umbrella structure) or none if asset-side rules met. Combined entity meets the higher of the two requirements. Capital can be shared across the dual-authorisation entity.
Dual-authorisation: 9-15 months end-to-end. Sequential CASP-then-AIFM (or vice versa) faster than fully-parallel. Pre-application engagement with CySEC essential for coordinated review. Operational launch typical 12-18 months from kickoff.
Reply within 24 hours from a senior adviser. No obligation, no upfront fee.