mica rules — mica rules — The Cyprus Securities and Exchange Commission (CySEC) has set a firm deadline for Crypto-Asset Service Providers (CASPs) to apply for authorisation under the Markets in Crypto-Assets Regulation (MiCA) by February 27, 2026. This move is crucial for firms wishing to continue their operations legally in the Republic.
In an announcement made on October 17, 2024, CySEC reiterated the importance of this regulatory framework, emphasising that firms currently operating under the existing national framework can continue their activities until their MiCA applications are either approved or rejected. However, this is contingent upon a transitional period that will end on July 1, 2026.
CySEC clarified that CASPs failing to submit an application by the deadline will need to provide a wind-down plan, as their ability to offer crypto-asset services will cease after the transitional period concludes. “CASPs that do not apply for authorisation by the above deadline are required to submit a wind-down plan,” the regulator stated, highlighting the urgency of compliance.
For those firms that wish to operate beyond July 1, 2026, securing the relevant MiCA authorisation is essential. This not only ensures legal operation but also aligns Cypriot firms with the more stringent standards set by the European Union regarding digital assets.
Furthermore, CySEC pointed out that while cross-border service provision to other EU Member States is permissible, it is subject to the host country’s national legislation. Firms must ensure their activities adhere to the guidance laid out by the European Securities and Markets Authority (ESMA) to avoid any legal complications.
Even for those firms that remain registered in the national register, compliance with existing obligations under both domestic regulations and Regulation (EU) 2023/1113 is mandatory. CySEC has made it clear that a smooth transition to the MiCA framework is vital for enhancing confidence, transparency, and security within the crypto-asset market.
This regulatory shift signifies a significant evolution for the Cypriot financial sector, aiming to provide a more structured environment for digital asset operations. As the February 2026 deadline approaches, the pressure mounts on CASPs to adapt quickly to the changing regulatory landscape.
