The Cyprus Securities and Exchange Commission (CySEC) has announced that applications for the registration of Crypto Data Service Providers (CΑSPs) will no longer be accepted in accordance with the provisions of National Rules in view of the implementation of the Regulation (EU) 2023/1114 for Markets in Crypto-Assets on December30, 2024.  

At the same time, the CySEC announced that it will also cease to accept Notifications from entities registered with one or more European Economic Area (EEA) National Competent Authorities for the provision of crypto-asset services, on the 30th of October 2024.

The CySEC said in a press release that Regulation 2023/1114 has already been applied to issuers of Asset Reference Tokens (ARTs) and E-Money Tokens (EMTs) on 30 June 2024.

It is added that a transitional period has been set under Article 143(3) of MiCAR.

Specifically, CASPs that will be registered in the CASP Register before 30 December 2024 will continue to provide their services until 1 July 2026 or until they are granted or refused an authorisation pursuant to Article 63, whichever is sooner.

The CySEC also stated that it will proceed with the publication of the application documents pursuant to Article 62(1) of MiCAR, once the European Commission has issued the Regulatory and Implementing Technical Standards.

"Until these are published, interested parties may refer to the Draft Technical Standards issued by European Securities and Markets Authority (ESMA), to streamline the process by preparing their applications in advance," it is added.

Similar actions, according to the CySEC, "can be taken by entities that intend to provide crypto-asset services in the European Union for which they are authorised under the Investment Services and Activities and Regulated Markets Law of 2017, or the Open-Ended Undertakings for Collective Investment Law of 2012, or the Alternative Investment Fund Managers Law of 2013.

It is noted that such entities should take into account the provisions under Article 60 of MiCAR.

In addition, the CySEC said that it will also cease to accept Notifications from entities registered with one or more European Economic Area (EEA) National Competent Authorities for the provision of crypto-asset services, on the 30th of October 2024.

"Entities that have submitted a successful notification by the aforesaid Cut-Off Date, shall be entitled to continue to provide their services on a cross-border basis in the Republic, during the transitional period," it is added.

Finally, the CySEC said that in case the aforementioned entities submit an application for authorisation, in accordance with MiCAR, they must inform CySEC immediately whether they are authorised or not during the transitional period, in order for CySEC to proceed with the update of the EEA CASP Register.