CySEC sets February deadline for crypto firms to meet MiCA rules

The Cyprus Securities and Exchange Commission (CySEC) has issued a final reminder to Crypto-Asset Service Providers (CASPs) operating in the Republic that they must apply for authorisation under the Markets in Crypto-Assets Regulation (MiCA) by February 27, 2026, to ensure the legal continuation of their business.

Following an announcement made on October 17, 2024, and the subsequent Circular No. 674, the regulator clarified that firms currently registered under the existing national framework are permitted to continue their activities until their application is either approved or rejected.

The provision of these services is strictly limited to the duration of the transitional period, which is set to expire on July 1, 2026, or until a decision on the application is reached, whichever occurs first.

“CASPs that do not apply for authorisation by the above deadline are required to submit a wind-down plan, as the provision of crypto-asset services will no longer be permitted after the end of the transitional period,” the regulator stated.

Any firm wishing to continue its activities beyond July 1, 2026, will find its operations conditional upon having successfully obtained the relevant MiCA authorisation from the authorities.

The commission also highlighted that the cross-border provision of services to other EU Member States is only allowed if the national legislation of the host country permits it and to the extent that a grandfathering regime has been adopted.

Firms seeking to operate across borders must ensure their activities remain in line with the relevant guidance issued by the European Securities and Markets Authority (ESMA).

Providers that remain registered in the national register continue to be subject to all existing obligations arising from both domestic rules and Regulation (EU) 2023/1113, according to the commission.

“A smooth transition to the MiCA framework is a key prerequisite for enhancing confidence, transparency and security in the crypto-asset market,” CySEC emphasised in its statement.

The move marks a significant shift for the Cypriot financial sector, as the regulator moves to align local digital asset operations with the broader and more stringent standards of the European Union.