CySEC Sets February Deadline for Crypto Firms Under MiCA
Generally, You should know that Cyprus Securities and Exchange Commission, CySEC, has announced that crypto firms operating in Cyprus must apply for authorization under the Markets in Crypto-Assets Regulation, MiCA, by February 27, 2026, which is a crucial deadline for firms to continue operating legally within the European Union. Normally, This deadline is very important for crypto firms. Apparently, You need to make sure you comply with the new regulations.
Transitional Period for Existing Firms
Obviously, Crypto-asset service providers, CASPs, currently operating under Cyprus’s national framework can continue their activities during a transitional period, which lasts until their application is either approved or rejected, or until July 1, 2026, whichever comes first. Usually, This provision ensures that firms have enough time to adapt to the new regulatory environment. Probably, You will need to prepare your firm for the new regulations.
Consequences of Missing the Deadline
Basically, Firms that fail to submit their application by the February 27 deadline will be required to prepare and submit a wind-down plan, and after the transitional period ends on July 1, 2026, no crypto-asset services may be provided without proper authorization under MiCA. Naturally, Any continued operations past this date will be conditional on obtaining the necessary approvals. Usually, You should try to avoid missing the deadline.
Cross-Border Compliance
Generally, CySEC has also clarified the rules for cross-border crypto services, and firms offering services to clients in other EU Member States must ensure that their activities are permitted under the host country’s national legislation. Apparently, They must also align with the grandfathering regime as outlined by the European Securities and Markets Authority, ESMA. Probably, You will need to research the regulations in each country.
Grandfathering Regime
Normally, The grandfathering regime is a set of rules that allows certain firms to continue operating under the old regulations, and You should check if your firm is eligible. Usually, This regime is very important for firms that are already operating in the EU.
New Reporting Rules Proposed
Obviously, In addition to the MiCA deadline, CySEC has launched a consultation on proposed amendments to align national rules with the EU’s European Single Access Point, ESAP, framework. Basically, Under these changes, investment firms, asset managers, and alternative investment fund managers, AIFMs, that are part of a financial conglomerate will be required to submit annual information on their legal, governance, and organizational structures to CySEC for publication on ESAP. Probably, These requirements are set to take effect from January 2030 and aim to enhance regulatory transparency and oversight.
Conclusion
Normally, The announcement from CySEC underscores the importance of timely compliance with the new regulatory framework for crypto firms. Generally, With the February 27 deadline looming, firms must act quickly to ensure they meet the requirements and avoid disruptions to their operations. Usually, You should start preparing your firm for the new regulations as soon as possible.
