Regulatory Alerts2024-12-31
Transitional period for crypto-asset service providers under MiCAR Article 143(3)
The Cyprus Securities and Exchange Commission requires Crypto-asset Service Providers that operated before 30 December 2024 to submit evidence of their prior activities to maintain operations under the MiCAR transitional period until 1 July 2026 or until authorization is granted or refused. Providers must deliver an Internal Auditor confirmation letter along with detailed data on services, client demographics, transaction volumes, assets, and income via email by 10 January 2025. This submission is mandatory for entities wishing to continue providing services during the transition phase without immediate full MiCAR authorization.
TO : Crypto-asset Service Providers (CASPs) FROM : Cyprus Securities and Exchange Commission DATE : 30 December 2024 CIRCULAR NO : C674 SUBJECT : Transitional period for the provision of services in cryptoassets pursuant to Article 143 (3) of Regulation (EU) 2023/1114 on Markets in CryptoAssets (‘MiCAR’)1 Further to its announcement dated 17 October 20242 , the Cyprus Securities and Exchange Commission (‘CySEC’) wishes to inform you of the following: According to Article 143(3) of MiCAR, «Crypto-asset service providers that provided their services in accordance with applicable law before 30 December 2024, may continue to do so until 1 July 2026 or until they are granted or refused an authorisation pursuant to Article 63, whichever is sooner. {…}». Therefore, the CASPs that provided their services in accordance with the provisions of National Rules3 before 30 December 2024, may continue to do so until 1 July 2026, or until they are granted or refused an authorisation pursuant to Article 63, whichever is sooner. To this end, the CASPs that provided services before 30 December 2024 and intend to continue to do so during the transitional period, are requested to submit to CySEC information evidencing the provision of such services. 1 Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in cryptoassets and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 2 Available here 3 The national rules on the provision of crypto-asset services are comprised of: i) The Prevention and Suppression of Money Laundering and Terrorist Financing Law (“AML/CFT Law”), ii) the CySEC Directive for the prevention and suppression of money laundering and terrorist financing - Register of Crypto Asset Service Providers (the “CASP Registration Directive”) and iii) the CySEC Directive for the Prevention and Suppression of Money Laundering and Terrorist Financing (collectively referred to as “National Rules”).
2 Particularly, the CASPs must provide a letter from their Internal Auditor confirming that they provided services before 30 December 2024, accompanied by the following information:
- The services that have been provided,
- The number of clients and their geographical allocation,
- The volume of transactions,
- The amount of their clients’ funds and crypto-assets
- The income derived from the provision of the services. The information (1)- (5) above has to be annexed to the confirmation letter in an excel spreadsheet format and submitted by 10 January 2025 the latest via the electronic address caspregistrations@cysec.gov.cy. Should you need any further clarifications in relation to the above please contact the Authorisations Department of CySEC via the electronic address authorisations@cysec.gov.cy. Yours sincerely, Panikkos Vakkou Vice-Chairman Cyprus Securities and Exchange Commission