The Cyprus Securities and Exchange Commission (CySEC) warned crypto-asset service providers (CASP) of upcoming changes in preparation for the pan-European MiCA legislation.
The CySEC announced that it’ll no longer accept applications for CASP licenses under Cypriot national law as of 30 December 2024. Firms that managed to register before that date will be able to continue operating until 1 July 2026. All others will have to obtain a license under MiCA.
In particular, the CySEC recalled that CASPs will be required to obtain a license as an electronic money institution (EMI) provider or an asset-referenced token (ART) provider under the new legislation. The regulator stresses that the transition to common European standards will affect the technical and regulatory requirements for license applicants in Cyprus.
Other EU members are also changing their approach to regulating the crypto market ahead of MiCA. Jack Chambers, Ireland’s Minister for Finance, said that the country’s government is developing new legislation to regulate the local crypto market. In particular, local financial regulators and intelligence agencies will have the power to suspend suspicious transactions involving digital assets and require strict reporting from cryptocurrency exchanges. There are also plans to tighten controls on transactions above €10,000.
The European Securities and Markets Authority (ESMA) recently called on the European Commission to revise the MiCA draft’s requirements and introduce mandatory external cybersecurity audits for crypto companies.
