The Cyprus Securities and Exchange Commission (CySEC) has announced that it will no longer accept applications for the registration of Crypto Asset Service Providers (CASPs). This decision aligns with the implementation of the new EU Regulation (EU) 2023/1114, governing Markets in Crypto-Assets (MiCAR), which will come into effect on December 30, 2024.
In addition to the cessation of new applications for CASPs, CySEC has stated that, as of October 30, 2024, it will also stop accepting notifications from entities registered with other National Competent Authorities (NCAs) in the European Economic Area (EEA) that provide crypto-asset services.
CySEC explained in its press release that the EU regulation, introduced on June 30, 2024, is already applicable to issuers of Asset Reference Tokens (ARTs) and E-Money Tokens (EMTs). A transitional period has also been defined under Article 143(3) of MiCAR.
During this transition, CASPs registered before December 30, 2024, will be allowed to continue operating until July 1, 2026, or until they receive or are denied authorization under Article 63—whichever occurs sooner.
Furthermore, CySEC announced that it will release application documents required by Article 62(1) of MiCAR, once the European Commission finalizes and issues the necessary Regulatory and Implementing Technical Standards. In the meantime, interested parties are encouraged to consult the Draft Technical Standards published by the European Securities and Markets Authority (ESMA) to streamline their preparations for application submissions.
Entities intending to provide crypto-asset services within the European Union are advised to follow similar steps. These include those authorized under the Investment Services and Activities and Regulated Markets Law of 2017, the Open-Ended Undertakings for Collective Investment Law of 2012, or the Alternative Investment Fund Managers Law of 2013. Such entities should also ensure compliance with Article 60 of MiCAR.
The Commission emphasized that notifications submitted successfully before the October 30, 2024, deadline will allow entities to continue offering cross-border services in Cyprus during the transitional period.
Lastly, CySEC noted that entities submitting applications for authorization in accordance with MiCAR must notify the Commission immediately upon receiving or being denied authorization. This is essential for CySEC to update the EEA CASP Register accordingly.
Source: www.stockwatch.com.cy