On Oct. 17, CYP SEC will not accept new applications for CASPs.
CYP SEC said it will no longer accept application for crypto-asset service providers.
CASPs
Reminded that Reg 2023/1114 for Markets in Crypto-Assets has already been applied to issuers of asset Tokens (ARTs) and E-Money Tokens (EMTs) on Jun. 30, 2024.
Therefore, a transitional period has been set under Art 143(3) of MiCAR.
Specifically, CASPs that will be registered in the CASP Register before Dec. 30, 2024 will continue to provide their services until Jul. 1, 2026 or until they are granted or refused an authorization pursuant to Article 63, whichever is sooner.
CYP SEC will proceed with publication of application documents pursuant to Art 62(1) of MiCAR, once EU CMSN has issued Regulatory/Implementing Technical Standards.
Until these are published, interested parties may refer to the Draft Technical Standards issued by ESMA, to streamline the process by preparing their applications in advance.
Similar actions can be taken by entities that intend to provide crypto-asset services in the EU for which they are authorized under the Investment Services and Activities and Regulated Markets Law of 2017, or the Open-Ended Undertakings for Collective Investment Law of 2012, or Alternative Investment Fund Managers Law of 2013.
These entities should take into account the provisions under Article 60 of MiCAR.
Cross Border Notifications
CYP SEC will also cease to accept Notifications from entities registered with one or more EEA NCAs for the provision of crypto-asset services, on Oct. 30, 2024.
Entities that have submitted a successful notification by the aforesaid CutOff Date continue to provide services on a cross-border basis during the transitional period.
In case the entities submit an application for authorization, in accordance with MiCAR, they must inform CYP SEC immediately whether they are authorized or not during the transitional period, so CYP SEC can proceed with the update of the EEA CASP Register.
Nov. 2024 CASP Applications Commencement
On Nov. 13, 2024, CYP SEC issued circular and notification (source language version) of CYP SEC's acceptance of CASP applications/notifications for preliminary assessment.
This is in accordance with Regulation on Markets in Crypto-Assets (MiCAR).
Concerns supplementary regulation in ESMA's regulatory technical standards (RTS) that are yet to be adopted, which provide information to be included.
Such as information by certain financial entities in the notification of their intention to provide crypto-asset services, and RTS on application for authorization.
Specifically, information to be included when applying as crypto-asset service provider.
Taking into account that MiCAR becomes applicable for such service providers on Dec. 30, 2024, it has been decided to implement a preliminary examination phase.
This phase will last up to that date to streamline authorization and notification process.
Affects central securities depositories, investment firms, market operators, UCITS management companies/alternative investment fund managers that are allowed to provide equivalent crypto-asset services pursuant to Art. 60 of MiCAR.
Also affects a legal person or other undertaking intending authorization as CASP as per Art. 63 of MiCAR, and those affected can follow CYP SEC website on applications.
CYP SEC confirms there are not set timelines, and so it is not obliged to assess or consider applications/notifications within a specific timeframe before Dec. 30, 2024.
