The Cyprus Securities and Exchange Commission (CySEC) has announced it will no longer accept applications for the registration of Crypto Asset Service Providers (CASPs) under National Rules, ahead of the implementation of the EU Regulation 2023/1114 for Markets in Crypto-Assets (MiCAR) on December 30, 2024.

CySEC also confirmed it will stop accepting notifications from entities registered with European Economic Area (EEA) National Competent Authorities to provide crypto-asset services, effective October 30, 2024.

The regulatory body clarified in a press release that Regulation 2023/1114 has already applied to issuers of Asset Reference Tokens (ARTs) and E-Money Tokens (EMTs) since June 30, 2024.

A transitional period, as set out in Article 143(3) of MiCAR, will allow CASPs registered before December 30, 2024, to continue providing services until July 1, 2026, or until they are granted or denied authorization under Article 63, whichever comes first.

CySEC also announced it will publish the necessary application documents, in line with Article 62(1) of MiCAR, once the European Commission issues the Regulatory and Implementing Technical Standards.

Until these standards are published, interested parties can refer to the Draft Technical Standards released by the European Securities and Markets Authority (ESMA) to streamline their application process.

CySEC emphasized that entities intending to provide crypto-asset services within the European Union must comply with the provisions of Article 60 of MiCAR and should consult existing regulations, such as the Investment Services and Activities and Regulated Markets Law of 2017, the Open-Ended Undertakings for Collective Investment Law of 2012, and the Alternative Investment Fund Managers Law of 2013.

Furthermore, entities that successfully submit notifications by the October 30, 2024 deadline will be allowed to continue providing their services on a cross-border basis in Cyprus during the transitional period.

In cases where entities submit applications for authorization under MiCAR, CySEC must be informed immediately whether these applications are approved or denied so that updates can be made to the EEA CASP Register.