EMI/PI License Cyprus

An Electronic Money Institution (EMI) license in Cyprus is a type of authorization granted by the Central Bank of Cyprus (CBC) that allows companies to issue, store, and manage electronic money (e-money) and provide payment services. To obtain an EMI license, the company must meet certain requirements, such as having adequate capital, a sound business plan, and a satisfactory track record of the management team.

Legislation

The provision of electronic money services in the Republic of Cyprus (the “Republic”) is regulated by the provisions of The Electronic Money Laws of 2012 and 2018 (‘‘the Law’’).

In order to obtain an authorisation as an electronic money institution, an application should be submitted to the CBC together with all the information referred to in subsections (3) to (8) of section 5 of The Provision and Use of Payment Services and Access to Payment Systems Laws of 2018 to 2023.

Changes to Legislation

PSD2 and EMD2 will be merged in the future. According to Art. 48 PSD3, Directive (EU) 2015/2366 (PSD2) and Directive 2009/110/EC (EMD2) will be replaced by PSD3, which together with the PSR will form the new European Payment Services Law. According to Art. 2 para. 4 PSD3 (or Art. 3 para. 4 PSR), payment institutions will also include legal entities providing e-money services in the future.

Advantages of obtaining a license

• Educated Workforce
• Experienced Regulator
• Tax System
• Tech Support
• Passporting

Permitted EMI Services

EMI Services

Issuance, redemption and distribution of electronic money

Additional Payment Services (PI)

• Services enabling cash to be placed on a payment account as well as all the operations required for operating a payment account.
• Services enabling cash withdrawals from a payment account as well as all the operations required for operating a payment account.
• Execution of payment transactions, including transfers of funds on a payment account with the user’s payment provider or with another payment service provider
  1. Execution of direct debits, including one-off direct debits;
  2. Execution of payment transactions through a payment card or a similar device;
  3. Execution of credit transfers, including standing orders.
• Execution of payment transactions where the funds are covered by a credit line for a payment service user
  1. Execution of direct debits, including one-off direct debits;
  2. Execution of payment transactions through a payment card or a similar device;
  3. Execution of credit transfers, including standing orders.
• Issue of payment instruments and/or acquiring of payment transactions.
• Money remittance.
• Payment initiation services.
• Account information services.

Steps for obtaining license

1. Prepare Application Package
2. Payment of fee to the CBC
3. Application Package Submission
4. Setting Up Operations and Compliance Verification