On 16 March 2023, the Cyprus Securities and Exchange Commission (“CySEC”) has published Policy Statement PS-01-2023 on the application of Regulation (EU) 2020/1503 on European Crowdfunding Service Providers for business (“PS-01-2023”) and Directive DI73-2009-02 for Crowdfunding Service Providers (“Directive DI73-2009-02”) to inform prospective Crowdfunding Service Providers (“CSPs”), which intend to provide their services from Cyprus, and existing CSPs previously authorised under national rules, of the next steps towards the full implementation of Regulation (EU) 2020/1503 on European Crowdfunding Service Providers for Business (“Regulation (EU) 2020/1503”).

More specifically, PS-01-2023 and Directive DI73-2009-02:

i. Outline CySEC’s position as regards the discretions provided to the National Competent Authorities that are entrusted with the supervision of CSPs, under Regulation (EU) 2020/1503;

ii. Inform market participants that CySEC will commence accepting applications from prospective CSPs;

iii. Specify the information to be notified to CySEC on an ongoing basis as well as the cases where an assessment will be undertaken by CySEC and the scope thereof; and

iv. Outline the respective fees and charges applicable to CSPs.

Regulation (EU) 2020/1503lays down uniform rules across the EU for the provision of Crowdfunding Services which will enable CSPs to obtain an EU passport in accordance with a harmonised and enhanced investor protection framework.

A full copy of PS-01-2023 is available here.

Prospective CSPs that intend to provide their services from Cyprus, may submit an application by using the relevant application form of the Annex of the Commission Delegated Regulation (EU) 2022/2112 which will be published on CySEC’s website here.