ML/TF Risks Following the End of the MiCA Transitional Period

TO : Regulated Entities i Crypto Asset Service Providers ii CIFs iii UCITS Management Companies iv Internally managed UCITS v AIFMs vi Internally managed AIFs vii Internally managed AIFLNPs viii Companies with sole purpose the management of AIFLNPs ix Small AIFMs under Law 81(I)/2020 FROM : Cyprus Securities and Exchange Commission DATE : 7 July 2026 CIRCULAR NO. : C790 SUBJECT : ML/TF risks following the end of the MiCA Transitional Period The Cyprus Securities and Exchange Commission (the ‘CySEC’) wishes to draw the attention of all the Regulated Entities that the MiCA transitional period has ended on 1 July 2026. Following this date, firms are required to obtain authorisation as Markets in Crypto-Assets Regulation (MiCAR)-compliant crypto-asset service providers (CASPs) in order to continue providing crypto-asset services within the European Union. CySEC would like to inform the Regulated Entities that the EU’s Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) has published an Advisory note on the money laundering and terrorist financing (ML/TF) risks associated with the end of the transitional period under the MiCAR. In its advisory note, AMLA highlights the ML/TF risks that may arise following the conclusion of this transitional period and outlines mitigating measures that may be adopted by unauthorised virtual asset service providers (VASPs) and authorised CASPs. These measures are intended to support the application of a risk-based approach and contribute to safeguarding the integrity of the EU financial system.