Cyprus Custodial Wallet — Compliant Development
Launch a custodial wallet in Cyprus with compliance controls mapped to CySEC and MiCA. Block Intelligence builds production software; independent counsel handles licensing.
Compliance scope
Cyprus · Custodial Wallet
Cyprus supervises crypto-asset service providers under MiCA through Cyprus Securities and Exchange Commission (CySEC). Firms offering exchange, custody, advisory, or other CASP services must obtain authorization and meet prudential, governance, and AML requirements before serving clients in the EU.
| Jurisdiction | Cyprus |
|---|---|
| Regulator | CySEC |
| Product | Custodial Wallet |
Software
Built-in compliance controls
- Custodial key management with HSM or secure enclave options
- Multi-chain deposits, withdrawals, and balance reconciliation
- Transaction monitoring and velocity limits
- Account recovery flows with identity re-verification
- Compliance reporting and user activity audit trails
- User identity verification and KYC processes
- AML compliance checks for transactions
- Secure storage solutions for private keys
- Transaction history and audit log capabilities
Block Intelligence provides technology development and compliance-oriented software architecture. We are not a law firm. Licensing and regulatory advice is provided by independent legal partners in each jurisdiction. Information is current as of 2026-03-01 and subject to change.
FAQ
Frequently asked questions
- What is a custodial wallet?
- A custodial wallet is a type of wallet where a third party manages the private keys and security of the user's crypto assets.
- What compliance measures are needed for custodial wallets?
- Custodial wallets must implement KYC and AML processes, transaction monitoring, and secure storage practices.
- Can I launch a custodial wallet without a license?
- No, a custodial wallet requires CASP authorization from CySEC to operate legally in Cyprus.