MarketGuard | FAQ

Learn more about how MarketGuard AML compliance software can assist a European VASP and CASP with blockchain transaction monitoring and Travel Rule

Cyprus

The Travel Rule in Cyprus applies to Crypto Asset Service Providers (CASPs) and is aimed at preventing money laundering and terrorist financing. Here are the main highlights of the Travel Rule for CASPs in Cyprus:

Scope

The scope of the Travel Rule in Cyprus is defined in the Prevention and Suppression of Money Laundering Activities Law of 2007-2021 and should be read in conjunction with CySEC Directive regarding the Prevention and Suppression of Money Laundering and Terrorist Financing, the CASP Directive 269/2021, and amending Directive 384/2021, for the prevention and suppression of money laundering and terrorist financing (Register of Crypto Asset Service Providers), and CySEC’s Policy Statement - PS-01-2021. VASPs are referred to as Crypto Asset Service Providers (CASPs) and CySEC maintains a CASP register. CASPs are in the scope of the Cypriot implementation of the Travel Rule. Self-hosted wallets are not explicitly mentioned in the Cypriot legislation but may fall within the definition of CASPs.

Personally Identifiable Information

When a CASP facilitates a virtual asset transfer, they must share certain customer information with the receiving CASP. This includes the originator's name, account number (or transaction reference number if no account number is available), address, official personal document number, customer identification number, or date and place of birth; beneficiary’s name, account number (or wallet address), and date of birth.

Threshold

The Travel Rule threshold in Cyprus is €1,000 per transaction. Starting in January 2025, the EU Transfer of Funds regulation will apply to all EU VASPs. The regulation recommends using a 0 threshold for the Travel Rule regardless of amount or location (inside or outside of the EU). The €1,000 threshold for first-party transactions with self-hosted wallets will still apply.

Enforcement

The Cyprus Securities and Exchange Commission (CySEC) is the supervisory body for CASPs in Cyprus and is responsible for enforcing the Travel Rule.

Additional requirements

CASPs must keep records of all transfers above the threshold amount for a period of five years, conduct customer due diligence measures, and notify the Financial Intelligence Unit (FIU) of any suspicious activity or transactions. CySEC may conduct inspections and investigations to ensure compliance with the regulations and may impose fines or other sanctions for non-compliance.

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