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Cyprus is one of the prominent financial hubs in the EU (European Union). It is well-known for its fintech-friendly legal framework, favourable tax regime, and strategic position.
It stands out as a strategic destination for financial services, providing reliable infrastructure and a favourable regulatory environment for businesses looking to establish EMIs (Electronic Money Institutions).
Why Establish an EMI in Cyprus
Thanks to technological advancements, Cyprus has stayed ahead in the ever-changing financial landscape. As an established EU jurisdiction, the country attracts entrepreneurs and businesses globally to grasp opportunities and even establish an EMI to benefit from:
A chance to offer services across the European Union through the passporting framework without establishing any branch in another state or seeking additional authorisation.
A wide network of experts allocating financial resources and providing high-quality compliance, banking, accounting, and legal services.
The country’s attractive regime with a net profit is subject to the lowest taxes in Europe. In addition, non-residents can enjoy no withholding taxes on royalties, interests, and dividends and can take advantage of over 60 double-tax treaties the republic has already secured.
Services EMI Offers
Licensed EMIs in the country are authorised to provide different financial and payment services. The main ones include cash withdrawals, executions of payment transactions, and payment account operations. EMIs also provide other services, including issuance of e-money, accounting information services, IT-based payments/telecommunications payments, money remittance, acquiring/issuing payment instruments, and credit-funded transactions.
Obtaining an EMI License
To get a license, you will have to meet certain requirements. First, you must ensure legal operation per the Cyprus Companies Act. Second, you must appoint Cyprus residents (two executive directories), compliance officers, IT experts, back office workers, and non-executive directors). Lastly, you must have enough capital to cover your business operations.
Getting or applying for an EMI license in Cyprus involves several steps, which are important to acquiring the license. These steps include the following:
1. Application Preparation
This first step involves gathering the necessary documentation and information. These often include due diligence reports, financial projections, and business plans, among other details.
2. Application Submission
You must submit your completed application and the supporting documentation to the Central Bank of Cyprus. The bank is the regulatory authority liable for regulating and supervising EMIs in Cyprus.
3. Application Review
The bank reviews applications and supporting documentation to evaluate whether they meet the license's regulatory requirements and eligibility criteria. Typically, this process takes a few months to complete.
4. On-site Inspection
After applications are approved, the bank conducts on-site inspections of applicants’ facilities to ensure companies have all the necessary infrastructure, controls, and systems to run as EMIs.
5. Issuance of the License
If applicants successfully finish the inspection and meet the regulatory requirements, the bank will issue a license, allowing companies to start their business operations.
The bottom line is that EMIs in the country provide many benefits, from strategic positioning to tax incentives and regulatory advantages. With a favourable legal system, dynamic fintech market, and skilled workforce, the country creates a suitable environment for EMIs to succeed.
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Simon Hopes
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As the world confronts the urgent and ever-growing challenge of climate change, carbon capture systems have emerged as an essential solution for decreasing greenhouse gas emissions. These systems are designed to capture carbon dioxide (CO2) from various sources, including power plants and industrial processes, and store it safely or utilize it in various applications.
The following article highlights that understanding the lifecycle of carbon capture systems is essential for evaluating their effectiveness and sustainability.
What are Carbon Capture Systems?
Carbon capture systems are technologies that prevent CO2 from entering the atmosphere. These systems work by capturing CO2 emissions at their source, compressing the gas, and transporting it to a storage site or a utilization facility.
There are three main types of carbon capture: pre-combustion capture, post-combustion capture, and oxy-fuel combustion. Each method has its unique processes and applications, making it crucial to choose the right approach based on the source of emissions.
Industrial decarbonisation companies play a critical role in developing and implementing carbon capture systems to help industries reduce their greenhouse gas emissions effectively.
Stages of the Carbon Capture Lifecycle
Design and Development
The lifecycle of a carbon capture system begins with design and development. This phase involves assessing the specific needs of the facility where the system will be implemented. Engineers and researchers collaborate to develop a tailored solution that maximizes efficiency while minimizing costs. This stage is critical, as it sets the foundation for the technology's performance and viability.
Construction and Installation
Once the design is finalized, the construction and installation phase commences. This includes building the necessary infrastructure, such as capture units, pipelines for transportation, and storage facilities. Collaboration among various stakeholders, including engineers, contractors, and regulatory bodies, is essential to ensure the project adheres to safety and environmental standards.
Operation and Maintenance
After installation, the carbon capture system enters the operation and maintenance phase. Continuous monitoring is crucial to ensure the system functions optimally. This phase involves regular maintenance checks, performance evaluations, and troubleshooting. Operators must be trained to handle the technology effectively and safely, which is vital for long-term success.
Transportation and Storage
Once CO2 is captured, it must be transported to a storage site or utilized in other processes. Transportation typically occurs through pipelines or trucks, depending on the location of the storage facility. Safe storage is critical, as CO2 must be kept underground or in other secure environments to prevent leakage. Various geological formations are assessed for their suitability as storage sites, ensuring they can contain the CO2 for an extended period.
Utilization
In some cases, captured CO2 can be utilized rather than stored. This phase involves converting CO2 into useful products, such as fuels, chemicals, or building materials. Carbon capture utilization not only reduces the overall carbon footprint but also creates economic opportunities in emerging markets.
Decommissioning
Eventually, carbon capture systems may reach the end of their operational lifecycle. Decommissioning involves safely dismantling the system and ensuring that any residual CO2 is managed appropriately. This phase also includes assessing the environmental impact of the system's entire lifecycle and considering lessons learned for future projects.
Conclusion
Grasping the lifecycle of carbon capture systems is essential for evaluating their effectiveness in addressing climate change. Each phase—from design and installation to operation, transportation, utilization, and decommissioning—brings its own set of challenges and opportunities.
As technological advancements progress, carbon capture systems are poised to become increasingly important in lowering global CO2 emissions and promoting a sustainable future. With ongoing research and investment, these systems can become a cornerstone of climate mitigation strategies worldwide.
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