Following the enactment of the Electronic Money Law of 2012 electronic money services in Cyprus may only be provided by an electronic money institution which has been granted an authorisation by the Central Bank of Cyprus.
Despite the provisions of the Electronic Money Law, certain persons may provide electronic money services in Cyprus without obtaining the prior approval of the Central Bank.
According to the relevant law, the following do not require the prior approval of the Central Bank:
- Banks licensed by the Central Bank of Cyprus or by a competent supervisory authority of another EU member state.
- Cooperative credit institutions which have been licensed by the Authority for the Supervision and Development of Cooperative Societies of Cyprus.
- Institutions which provide postal payment services and which issue electronic money by virtue of relevant legislation.
- The European Central Bank and national central banks when not acting in their capacity as monetary or other public authorities.
- Member states or their regional or local authorities when not acting in their capacity as public authorities.
- Electronic money institutions that have been granted and maintain a valid authorisation to operate by the competent supervisory authorities of other EU member states. These institutions may either exercise the right of establishment or the right to provide services on a cross – border basis, provided that the competent authorities of the home member state submit to the CBC a notification in the manner prescribed by the Electronic Money Institutions Directive (241/2012) issued by the Central Bank of Cyprus.
For further information relating to receiving authorisation for the operation of an electronic money institution in the Republic of Cyprus contact us using [email protected]
Theodorou Law is a Cyprus law firm with Cyprus lawyers and other legal experts on legal matters involving Cyprus law, EU law and international law. The above should be used as a source of general information only. It is not intended to give a definitive statement of the law and is subject to the disclaimer.