The Cyprus Securities and Exchange Commission (CySEC) has set a deadline of December 30, 2024, for Central Asian Securities Exchanges (CASPs) to comply with the Markets in Crypto-Assets Regulation (MiCAR), a new EU regulation aimed at regulating crypto-asset markets. This particular set of amendments represents a critical change, and it strives to establish greater unity in managing crypto assets within the EU zone.
CySEC has also required CASPs operating under national laws to apply for authorization under MiCAR within a set time. These entities can continue business until July 1, 2026, or until the competent authority decides on their licenses under the new regime. This is an important window for CASPs to harmonize their operational posture with the preceding stringencies under MiCAR.
In preparation for the transition to MiCAR, CySEC will no longer accept any new registrations under the existing national system starting immediately. The current regulations shall be applied until October 30, 2024, the last date for submitting notifications by entities based in the European Economic Area (EEA). In this regard, it is worth noting that since this cutoff, all new applications to register a car will be governed only by MiCAR requirements. It also avoids potential conflicts of jurisdictional authority that may arise if there is no clear and sure handover.
The suspension of registrations under national rules is a positive signal that all the providers of crypto-asset services must adhere to a unified regulatory framework. They altered the operational policies of the crypto firms and reflected the EU's determination to create a robust, transparent, and safe crypto market. Entities that have not adhered to the transition timelines can experience some operational interferences, hence the call to affect the new directors fully.
Other EU member states' signing and ratifying MiCA also represent collective attempts to strengthen investor safeguards and market transparency and ensure cryptocurrency market stability. The regulation incorporates the main proposals suggested in previous regulatory initiatives, including those related to transparency and accountability as well as consumer protection, which should enhance the stability of the digital asset markets.
Regulatory mandates in CASPs' business structures must be gradually incorporated in preparation for the next phase, which is expected to commence in mid-2026. This will enable the industry to continue serving consumers while amending its compliance processes as needed.