Central Bank of Cyprus announces new licensing requirements for payment institutions

The Central Bank of Cyprus (CBC) announced an overhaul of the licensing process for electronic money institutions and payment institutions, effective August 3, 2026. The reform introduces a mandatory 'pre-application exploratory stage' that must be completed before any formal license application is submitted.

During this initial phase, prospective entities are required to submit specific documentation to the CBC for preliminary assessment, accompanied by a non-refundable fee of €5,000. This measure, part of a strategy first outlined on December 20, 2024, aims to enhance transparency regarding supervisory expectations and identify potential regulatory hurdles early in the process. The central bank intends for these changes to streamline future evaluations and ensure that only viable applicants proceed to the formal stage.