The statement also provides welcome guidance on the transition of CASPs from the Local CASP Regime to EU Regulation 1114/2023 on markets in crypto-assets (MiCAR), which will apply as of 30 December 2024. The rules for issuers of Asset-Referenced Tokens (ARTs) and e-Money Tokens (EMTs) are already in force, as of 30 June 2024.

As of the date of the statement (ie 17 October 2024), CASP registration applications under the Local CASP Regime will no longer be accepted by CySEC.

Similarly, applications for registration of EEA CASPs providing cross-border services in Cyprus under the Local CASP Regime will no longer be accepted, as of 30 October 2024.

Under MiCAR's Article 143(3), CASPs that are registered before 30 December 2024 can continue providing services in Cyprus until 1 July 2026 or until they receive or are denied a CASP licence under MiCAR, whichever occurs first.

EEA CASPs that are already registered can similarly continue providing cross-border services in Cyprus until 1 July 2026. Such EEA CASPs must inform CySEC in case they receive or are denied a CASP licence in their home state under MiCAR.

CySEC will publish application documents for CASP authorisation once the European Commission releases the final Regulatory and Implementing Technical Standards in the final form. In the meantime, CASPs are encouraged to prepare by reviewing the draft standards and consultations published by the European Securities and Markets Authority.

CySEC’s announcement can be found here.

If you are unsure whether MiCA Regulation may apply to you, you can use our MiCA Assessment Tool to obtain a free preliminary assessment here.