The Cyprus Securities and Exchange Commission (CySEC) has initiated a preliminary assessment phase for Crypto-Asset Service Providers (CASPs) applying under the forthcoming EU Markets in Crypto-Assets Regulation (MiCA).
Effective today, November 13, 2024, CASPs in Cyprus can submit applications to CySEC in preparation for MiCA’s full implementation on December 30, 2024.
This step by CySEC aligns with the MiCA framework, a regulation setting standardized rules for crypto-asset markets across the EU. As part of this preliminary phase, CySEC has made application and notification forms accessible on its website for CASPs and other financial entities authorized under Article 60 of MiCA, including investment firms, UCITS managers, and alternative investment fund managers, to submit notifications or seek authorization under Article 63.
Important Points for this Preliminary Phase:
During this phase, CySEC will receive applications from both entities currently regulated under Cyprus’ national crypto-asset laws and new market entrants aiming for MiCA compliance.
While accepting applications early, CySEC retains the discretion to prioritize applications, particularly for entities already regulated under existing Cyprus’ crypto-asset rules.
Submissions during this preliminary phase will be officially considered upon completion of formalities, including fee payment and verification of information accuracy by December 30, 2024.
CySEC will make final decisions on granting/refusing authorization, as well as on the completeness of submitted notifications, after MiCA officially applies to CASPs on December 30, 2024.
Reminder of Transitional Measures and Applicability Dates
CySEC also reminds interested parties of a recent announcement regarding MiCA's phased applicability. MiCA became effective for issuers of Asset-Referenced Tokens (ARTs) and E-Money Tokens (EMTs) on June 30, 2024, and will extend to CASPs on December 30, 2024.
Under MiCA’s transitional measures, CASPs registered under National Rules before December 30, 2024, may continue to provide their services until July 1, 2026, or until CySEC grants or refuses authorization per Article 63, whichever is sooner.
Additionally, as of October 17, 2024, CySEC ceased accepting any CASP applications for registration under National Rules in view of MiCA becoming applicable to CASPs on 30 December 2024.
So that, CySEC’s early application phase for MiCA is helping crypto service providers in Cyprus get ready for new EU rules, making the transition easier and clearer for everyone involved.
The information provided is not legal, tax, investment, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your own legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be automatically generated. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information.
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