The Cyprus Securities and Exchange Commission has launched a consultation on a proposed Directive requiring Crypto-Asset Service Providers to submit prudential and financial information.
The initiative follows a previous CySEC consultation on proposed fees and reporting under MiCA. The consultation is open until 12 January 2026. Responses must be submitted via email in Word format, specifying whether the submitter is an individual, enterprise, or organized group.
Crypto Firms Face New Reporting Requirements
Under the draft Directive, authorized CASPs must provide periodic updates under the EU MiCA regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term. They must also submit financial reports, including trial balance, balance sheet, and profit and loss statements, as well as audited annual financial statements. The reporting framework aligns with existing prudential requirements for investment firms.
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Category 2 and 3 CASPs will report quarterly, while Category 1 CASPs will report annually. CASPs must revise submitted data if audited results differ, within five months of the end of the financial year.
Regulator Reviews MiCA Applications, Stablecoins, Prop
CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term Chair Dr. George Theocharides said the regulator is monitoring AI use in investment firms and reviewing multiple MiCA applications without rushing approvals. Crypto-asset service providers, including Revolut and eToro, undergo extensive scrutiny before licensing.
Stablecoins and prop trading remain areas of ongoing attention due to potential risks to financial stability. Theocharides also noted that investor deception continues despite regulatory measures. The agency monitors finfluencers and issues guidance to ensure promotions comply with EU rules, emphasizing careful and gradual oversight.
Cyprus Firms Face Stricter Compliance Requirements
Theocharides’ observations reflect the broader regulatory environment Cyprus firms will face in 2025. CySEC is increasing supervision of investment firms, funds, and crypto-asset service providers. In 2024, the regulator carried out over 850 audits, issued €2.76 million in fines, and revoked multiple licenses.
Key EU regulations, including MiCA, AML Package, AIFMD II, and DORA, will further shape compliance and investor protection. Despite stricter oversight, Cyprus’ financial sector expanded, with 80 new entities authorized and firms actively seeking MiCA licensing under the evolving framework.
