The Cyprus Securities and Exchange Commission has reminded
Crypto-Asset Service Providers operating in Cyprus of the deadline to apply for
authorisation under the Markets in Crypto-Assets Regulation.
According to CySEC, the deadline for submitting an
application under MiCA is 27 February 2026. The regulator referred to its
earlier announcement, which outlined the transitional arrangements for existing
providers.
CASPs Must Apply Before February Deadline
CASPs that are currently offering services under the
national framework may continue operating during the transitional period. This
applies until their application is approved or rejected or until the end of the
transitional period on 1 July 2026, whichever comes first.
CySEC clarified that CASPs which do not submit an
application by the February 2026 deadline must prepare and submit a wind-down
plan. After the end of the transitional period, the provision of crypto-asset
services will no longer be permitted without MiCA authorisation. Any activity
beyond the July deadline is conditional on obtaining the relevant approval
under the regulation.
Cross-Border Crypto Services Require Compliance
The regulator also recalled the rules on cross-border
activity. The provision of crypto-asset services to another EU Member State is
allowed only where this is permitted under the host country’s national
legislation. It must also be aligned with the adoption of the grandfathering
regime, in line with guidance issued by the European Securities and Markets
Authority.
CySEC added that CASPs which remain registered in the
relevant national register continue to be subject to all existing obligations
arising from national rules, as previously communicated by the authority.
CySEC Proposes ESAP Reporting Rules
CySEC has launched a consultation on proposed amendments to
align national rules with the EU’s European Single Access Point framework. Under the changes, investment firms, asset managers, and AIFMs that
are part of a financial conglomerate would be required to submit annual
information on their legal, governance, and organisational structures to CySEC
for publication on ESAP.
The requirements, effective from January 2030, aim to
enhance regulatory transparency and oversight, without introducing any retail-facing
obligations.
This article was written by Tareq Sikder at www.financemagnates.com.
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