January 2025 Regulatory Roundup

INVESTMENT SERVICES & CAPITAL MARKETS

MIFID and MIFIR (and MAR)

ESMA consults on Technical Advice on Listing Act implications
On 12 December 2024, ESMA launched a consultation to gather feedback following changes to the Market Abuse Regulation (MAR) and Market in Financial Instruments Directive II (MIFID II) introduced by the Listing Act.

Regarding MAR, ESMA is inviting feedback on:

• a non-exhaustive list of the protracted process and the relevant moment of disclosure of the relevant inside information (together with some principles to identify the moment of disclosure for protracted not listed processes).
• a non-exhaustive list of examples where there is a contrast between the inside information to be delayed and the latest public announcement by the issuer.
• a methodology and preliminary results for identifying trading venues with a significant cross-border dimension, for the purposes of establishing a Cross Market Order Book Mechanism.

Regarding MIFID II, ESMA’s proposals cover:

• a systematic review of the relevant provisions in Commission Delegated Regulation 2017/565 to ensure that a Multilateral Trading Facility (MTF) (or a segment of it) to be registered as small and medium-sized enterprises growth market (SME GMs) complies with the relevant requirements in the revised MIFID II.
• some conditions to meet the registration requirements for a segment of an MTF, as specified in the revised MIFID II.

In line with the objectives of the Listing Act, ESMA’s technical advice aims at ensuring that the EU’s regulatory framework promotes better access to public capital markets for European Union companies, especially SME’s, by reducing the administrative burden on listed companies or companies that seek a listing, while ensuring integrity and confidence in capital markets. 

ESMA will review the feedback received by 13 February and will deliver its technical advice to the European Commission before the deadline set on 30 April 2025. 

ESMA publishes its Final Report on bond transparency and reasonable commercial basis under MIFIR Review
On 16 December 2024, ESMA published the Final Report covering mandates under the MIFIR Review on bond trade transparency and reasonable commercial basis (RCB).

The report includes the amendments to regulatory technical standards (RTS) on the mandates for bonds, structured finance products (SFPs) and emission allowances (EUA). Regarding the bond deferral regime, ESMA has performed a new data analysis, focusing on metrics such as the average daily volumes, to improve the deferral regime initially proposed in the public consultation.

The proposed pre- and post-trade transparency requirements for non-equity instruments are designed to ensure a high level of transparency whilst ensuring that liquidity providers are protected from undue risk. The RTS also ensures that the new deferral regime is in place ahead of the go live of the bond consolidated tape.

Regarding the new mandate on RCB, the report covers the obligation to make pre- and post-trade data available on an RCB. The fees of market data will need to be based on the cost of producing and disseminating the market data and a reasonable margin.

The RTS is designed to ensure that market data is available to all market participants in an accessible, fair and non-discriminatory manner and this will be fundamental to guarantee a proper implementation of the MIFIR Review.  More information on the changes due to MIFID II and MIFIR Review can be found in the ESMA dedicated webpage.

The report has been submitted to the European Commission, that will now have three months to decide whether to endorse the proposed RTSs.

ESMA also intends to publish another consultation paper addressing the transparency mandate for derivatives under Article 11a of MIFIR in early 2025.

ESMA delivers final report on equity transparency under MIFID II
On 16 December 2024, ESMA published the Final Report with proposals for amendments related to equity transparency under MIFID. Through its proposals ESMA aims to contribute to a more informative pre-trade and post-trade transparency regime.

The report includes proposals for the amendment of the regulatory technical standards (RTS) as well as technical advice (TA) on the provisions on equity transparency, covering:

• Changes to the definition of a liquid market for equity instrument;
• Specification of information to be disclosed for pre-trade transparency purposes, which is also of relevance for the equity consolidated tape;
• Review of the pre-trade transparency requirements for Systematic Internalisers (SIs), including the calibration of two quoting sizes.; and
• Post-trade transparency reports, including flags for equity instruments.

In addition, the RTS and TA include changes related to the discontinuation of reporting of data for the purpose of transparency calculations. Going forward, ESMA will perform these calculations using transaction data reported under Article 26 of MIFIR. By removing this reporting obligation and the reuse of the other already reported data, ESMA aims at reducing the reporting burden for market participants.

Similar amendments will be proposed in early 2025 for the volume cap mechanism.

The final report with the draft RTS has been submitted to the European Commission for adoption.

ESMA delivers technical standards on for Consolidated Tape Providers (CTPs) and other Data Reporting Services Providers (DRSPs)
On 16 December 2024, ESMA published new and revised technical standards for Consolidated Tape Providers (CTPs) and other Data Reporting Services Providers (DRSPs).

The technical standards outlined in the Final Report cover the new rules applicable to CTPs regarding data quality and reporting, revenue redistribution and authorisation, and update the provisions on the authorisation and the organisational requirements for Approved Publication Arrangements (APAs) and Authorised Reporting Mechanisms (ARMs) and on the synchronisation of business clocks across market infrastructures.

ESMA also publishes a feedback statement providing an overview of responses received from stakeholders to the public consultation on the future selection of CTPs. This statement also clarifies certain aspects of the CTP selection procedures.

These publications are a prerequisite to the successful establishment of CTPs in the EU, and to the improved functioning of APAs and ARMs.

After submitting the final report, the European Commission has three months to decide whether to endorse the proposed amendments to the RTS.

ESMA will launch the selection procedures for the bonds CTP on 3 January 2025, and for the equity CTP in June 2025.

ESMA feedback statement on future selection of Consolidated Tape Providers (CTPs)
On 16 December 2024, ESMA published a feedback statement providing an overview of responses received from stakeholders to its public consultation on the future selection of consolidated tape providers (CTPs).

ESMA provides a detailed summary of the feedback collected for each of the selection criteria: (i) governance and organisation requirements; (ii) costs, fees and revenue redistribution; (iii) the ability to process data and dissemination speed; (iv) data quality, modern interface and record-keeping; and (v) resilience, cyber-risk and energy consumption.

The final technical specifications will be made publicly available, together with general tendering specifications on the approach and standardised forms, at the launch of each selection procedure.  ESMA will launch the selection procedures for the bonds CTP on 3 January 2025, and for the equity CTP in June 2025.

ESMA launches selection of the Consolidated Tape Provider for bonds
On 3 January 2025, ESMA launched the first selection procedure for the Consolidated Tape Provider (CTP) for bonds.

​The CTP aims to enhance market transparency and efficiency by consolidating trade data from various trading venues into a single and continuous electronic stream. This consolidated view of market activity should help market participants to access accurate and timely information and make better-informed decisions, leading to more efficient price discovery and trading.

​ESMA will assess the received requests against the exclusion and selection criteria and will invite the successful candidates to submit their application.

​ESMA intends to adopt a reasoned decision on the selected applicant by early July 2025.

​The successful applicant will be selected to operate the CTP for a period of five years and invited to apply for authorisation with ESMA without undue delay. Once authorised, the CTP will be supervised by ESMA.

EMIR

ISDA Paper on Compliance Requirements under MIFIR
On 9 December 2024, ISDA published a paper that maps out an approach to post-trade transparency under the revised Markets in Financial Instruments Regulation (MIFIR) for reporting single-name credit default swaps referenced to global systemically important banks (GSIBs), supporting meaningful transparency and implementation practicability.

A significant proportion of these products have only become subject to MIFIR transparency this year, due to changes resulting from the EU MIFID Review and the new MIFIR Article 8a2(b). ISDA highlights that trading in these products is concentrated in a handful of market standard reference entities that directly represent the core banking entities of those GSIBs and illustrates this by mapping the relevant legal entity identifiers (LEIs) against the GSIBs, creating a list of market standard reference entities. ISDA does not propose maintaining such a list on an ongoing basis but suggests that publication of a GSIB LEI list for the purposes of MIFIR transparency would support consistent compliance in the market.

Ideally, ESMA would make a list of GSIB LEIs available to market participants in guidance or RTS.

EBA publishes a no action letter on the application of EMIR
On 17 December 2025, the European Banking Authority (EBA) published a no action letter stating that competent authorities (CAs) should not prioritise any supervisory or enforcement action in relation to the processing of applications for initial margin (IM) model authorisation received as a result of the entry into force of EMIR 3.

The no action letter, developed in cooperation with ESMA and the European Insurance and Occupational Pensions Authority (EIOPA), applies until key deliverables mandated under EMIR 3 become applicable.

Investor protection

ESMA consults on EU code of conduct for issuer-sponsored research
On 18 December 2024, ESMA launched a consultation on draft Technical Standards (RTS) to establish an EU code of conduct (EU CoC) for issuer-sponsored research.

The EU CoC sets out standards of independence and objectivity for research providers and specifies procedures and measures for the effective identification, prevention, and disclosure of conflicts of interest (COI), with a view to enhance the trust in and use of issuer-sponsored research.

In its proposals ESMA indicates that:

• issuers and research providers should only enter into an agreement where the minimal initial term of the contract is two years and where, at minimum, 50% of the annual remuneration is paid upfront;
• research providers should establish, implement and maintain an effective COI policy; and
• research that is fully paid for by the issuer should be made public immediately.

Investment firms will also be expected to ensure that all issuer-sponsored research that they produce or intend to distribute to (potential) clients complies with the EU CoC.

The consultation is primarily aimed at research providers, issuers, investment firms, and investors.

ESMA will consider the feedback it received to this consultation by 18 March 2025 and will prepare the final report for subsequent submission of the final draft RTS to the European Commission by 5 December 2025.

ESMA

ESMA consults on the Internal Control Framework for some of its supervised entities
On 19 December 2024, ESMA launched a consultation on draft Guidelines related to the Internal Control Framework for some of its supervised entities.

The proposed draft Guidelines build on the Internal Control Guidelines currently in place for Credit Rating Agencies and extend them to include also Benchmark Administrators, and Market Transparency Infrastructures (Trade Repositories, Data Reporting Services Providers and Securitisation Repositories).

The draft Guidelines outline ESMA’s expectations for the components and characteristics of an effective internal control system, ensuring:

• a strong framework, detailing the internal control environment and informational aspects; and
• effective internal control functions, including compliance, risk management, and internal audit.

The draft Guidelines also explain in greater detail how ESMA applies proportionality in its expectations regarding the internal controls for a supervised entity.   In addition, the draft Guidelines reflect the growing impact of technology on supervised entities’ operations.

The consultation is primarily aimed at ESMA supervised entities and prospective applicants for ESMA supervision.

ESMA will review the stakeholder feedback received to this consultation by 19 March 2025 and expects to publish a final report by Q4 2025.[/vc_column_text][/vc_column][/vc_row][/vc_section][vc_section css=”.vc_custom_1609007282200{margin-bottom: 20px !important;}”][vc_row css=”.vc_custom_1609007241176{padding-right: 15px !important;padding-left: 15px !important;}”][vc_column css=”.vc_custom_1612794217189{margin-bottom: 20px !important;padding-top: 3px !important;padding-right: 20px !important;padding-bottom: 3px !important;padding-left: 20px !important;background-color: #283a66 !important;}”][vc_column_text]

OPERATIONAL RESILIENCE

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]DIGITAL OPERATIONAL RESILIENCE ACT (DORA)

The ESAs’ Dry Run exercise shows the goal of reporting of registers of information under Digital Operational Resilience Act in 2025 within reach

On 17 December 2024, the European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) published a summary report with the key findings from the 2024 Dry Run exercise on reporting the registers of information under the Digital Operational Resilience Act (DORA).

The conclusions and lessons learnt as well as individual data quality feedback provided to financial entities during the exercise will aid preparations for the official reporting starting in 2025.

The quality of data observed in the registers submitted by almost 1,000 financial entities across the EU was in line with the ESAs’ expectations, considering the ‘best effort’ nature of the exercise. Of the registers analysed, 6.5% successfully passed all data quality checks, while 50% of the remaining registers failed less than 5 out of 116 data quality checks.

The ESAs are confident that the objective of having registers of sufficient quality in 2025 that would allow for the designation of critical third-party service providers (CTPPs) is not out of reach, subject to some additional efforts from the industry.

The key findings presented in the summary report and all supporting materials provided by the ESAs should be carefully considered by all industry stakeholders, including those financial entities that did not participate in the Dry Run exercise, as they will help them to be better prepared to report the registers in 2025.

The ESAs are also continuing with the Dry Run workshops for the industry. The last workshop in the series was held on 18 December 2024 and focussed on the Dry Run summary report and the changes to the final ITS on the Registers of information.

The preparatory efforts should not stop with the completion of the Dry Run exercise. The individual data quality feedback provided to the financial entities should help them continue improving the quality of their data and ensure that the registers to be submitted in 2025 meet the regulatory requirements, are complete and provide all the necessary information for the designation of critical ICT third-party providers (CTPPs) by the ESAs.[/vc_column_text][/vc_column][/vc_row][/vc_section][vc_section css=”.vc_custom_1609007282200{margin-bottom: 20px !important;}”][vc_row css=”.vc_custom_1609007241176{padding-right: 15px !important;padding-left: 15px !important;}”][vc_column css=”.vc_custom_1612794217189{margin-bottom: 20px !important;padding-top: 3px !important;padding-right: 20px !important;padding-bottom: 3px !important;padding-left: 20px !important;background-color: #283a66 !important;}”][vc_column_text]

FUNDS

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]ESMA consults on open-ended loan originating alternative investment funds
On 12 December 2024, ESMA published a consultation paper on draft regulatory technical standards on open-ended loan originating AIFs under the revised Alternative Investment Fund Managers Directive (AIFMD).

The consultation aims to receive feedback on the draft RTS that set out the requirements with which loan-originating Alternative Investment Funds (AIFs) shall comply to maintain an open-ended structure.

AIFMD review has introduced some harmonised rules on loan originating funds. The goal of these rules is to provide a common implementing framework for AIFMs and NCAs by determining the elements and factors that AIFMs need to consider when making the demonstration to their NCAs that the loan originated AIFs they manage can be open-ended.

According to the revised AIFMD, loan-originating AIFs shall be closed-ended unless their manager can demonstrate to its home national competent authority (NCA) that their liquidity risk management system is compatible with their investment strategy and redemption policy.

ESMA will receive responses to this consultation until 12 March 2025 and intends to finalise the draft RTS by Q3/Q4 2025.[/vc_column_text][/vc_column][/vc_row][/vc_section][vc_section css=”.vc_custom_1609007282200{margin-bottom: 20px !important;}”][vc_row css=”.vc_custom_1609007241176{padding-right: 15px !important;padding-left: 15px !important;}”][vc_column css=”.vc_custom_1612794217189{margin-bottom: 20px !important;padding-top: 3px !important;padding-right: 20px !important;padding-bottom: 3px !important;padding-left: 20px !important;background-color: #283a66 !important;}”][vc_column_text]

SUSTAINABLE FINANCE

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Funds and Sustainable Finance

ESMA Q&As on the application of the Guidelines on funds’ names

On 13 December 2024, ESMA published Q&As with further details on specific aspects of the practical application of the Guidelines on funds’ names using ESG or sustainability-related terms. 

The Q&As are related to green bonds [UCITS, AIF], the convergence on “meaningfully investing in sustainable investments” [UCITS, AIF] and the definition of controversial weapons [UCITS, AIF]. The objective is to ensure a smooth application of the Guidelines through common understanding of key concepts.

• The Q&A on green bonds explains that investment restrictions related to the exclusion of companies do not apply to investments in European Green Bonds. For other green bonds, fund managers may use a look-through approach to assess whether the activities financed are relevant for the exclusions;
• The Q&A on “meaningfully investing in sustainable investments” presents a common understanding among national competent authorities that funds may not be “meaningfully investing in sustainable investments” if they contain less than 50% of sustainable investments; and 
• The Q&A on controversial weaponsspecifies that the reference for the exclusion related to controversial weapons should be the one referred to in SFDR principal adverse impact indicator 14. 

ESMA has decided to clarify the treatment of Green Bonds because of the imminent application of the European Green Bonds Regulation and the reference in the mandates in the AIFMD and UCITS Directive noting that sectoral legislation takes precedence..

Sustainability Reporting

ESMA consults on proposals to digitalise sustainability and financial disclosures
On 13 December 2024, ESMA published a Consultation Paper seeking stakeholders’ views on how the European Single Electronic Format (ESEF) can be applied to sustainability reporting. The proposals also aim to ease the burden associated with financial reporting.

It is a priority for ESMA that investors are able to effectively access relevant and comparable information, enabling them to enhance and accelerate their data-driven investment strategies. Digitalised sustainability and financial information from undertakings will be integrated in the future European Single Access Point (ESAP), ensuring the efficient access and use of this information by investors.

The Consultation Paper includes proposals for:

• Defining the marking up rules for sustainability reporting; with a phased implementation for ESRS sustainability statements in three steps, each lasting two years, and a full implementation for Article 8 disclosures; and
• Redefining the marking up approach for the Notes to the IFRS consolidated financial statements.

The Consultation Paper also proposes amendments to the Regulatory Technical Standards on the European Electronic Access Point.

Interested stakeholders are invited to submit their feedback by 31 March 2025. These proposals are of particular relevance to listed and non-listed undertakings and parent undertakings of large groups, auditors, investors, data analysts and other users of financial information and other electronic reporting stakeholders at large impacted by the ESEF Regulation.

ESMA will consider the feedback it received to this consultation in Q2 2025. ESMA expects to publish a final report in Q3 2025 and to submit the draft technical standards to the European Commission for endorsement.

Sustainable Finance Disclosure Regulation (SFDR)

EU Platform on Sustainable Finance report on categorisation of products under SFDR
On 17 December 2024, the EU Platform on Sustainable Finance published a report on the categorisation of products under the SFDR. 

The Platform recommends categorising products with the following sustainability strategies:

• sustainable – contributions through Taxonomy-aligned Investments or Sustainable Investments with no significant harmful activities, or assets based on a more concise definition consistent with the EU Taxonomy;
• transition – investments or portfolios supporting the transition to net zero and a sustainable economy, avoiding carbon lock-ins, in line with the EC’s recommendations on facilitating finance for the transition to a sustainable economy; and
• ESG collection – excluding significantly harmful investments/activities, investing in assets with better environmental and/or social criteria or applying various sustainability features.

All other products should be identified as unclassified products.

The categories aim to reflect the overarching sustainability objective of financial products, focusing on the needs of retail investors. To be effective, it is proposed to align sustainability preferences with the categories.

The briefing note is accompanied by an annex with guidance on setting thresholds and supporting data. The annex shows primary findings on the current state of the ESG markets and the potential impact which setting certain thresholds could have on current products falling under the scope of Article 8 and Article 9 of the SFDR. It also provides guidance on steps which are useful to determine possible thresholds for categories.

The Platform on Sustainable Finance will present the proposal in a webinar on Tuesday 21 January 2025 from 13:00 to 14:00 CET

ESG Ratings

Regulation on ESG rating activities published in Official Journal
On 12 December 2024, Regulation (EU) 2024/3005 on the transparency and integrity of environmental, social and governance (ESG) rating activities was published in the Official Journal.

The Regulation aims to strengthen the reliability and comparability of ESG ratings by improving the transparency and integrity of the operations that ESG ratings providers carry out and by preventing potential conflicts of interest. In particular, ESG ratings providers established in the EU will need to be authorised and supervised by ESMA. They will have to comply with transparency requirements, in particular with regard to their methodology and sources of information.

The Regulation also introduces a requirement for the separation of business and activities in order to prevent conflicts of interest. The Regulation will enter into force on 2 January 2025, the twentieth day following its publication in the Official Journal. It will apply from 2 July 2026.[/vc_column_text][/vc_column][/vc_row][/vc_section][vc_section css=”.vc_custom_1609007282200{margin-bottom: 20px !important;}”][vc_row css=”.vc_custom_1609007241176{padding-right: 15px !important;padding-left: 15px !important;}”][vc_column css=”.vc_custom_1612794217189{margin-bottom: 20px !important;padding-top: 3px !important;padding-right: 20px !important;padding-bottom: 3px !important;padding-left: 20px !important;background-color: #283a66 !important;}”][vc_column_text]

CySEC DEVELOPMENTS

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”8217″ img_size=”full” alignment=”center”][vc_column_text]Policy Statement PS-02-2024: Policy Statement on the application of Regulation (Eu) 2019/1238 on a Pan-European Personal Pension Product (PEPP)

On 6 December 2024, CySEC issued PS-02-2024 to inform interested parties of the steps towards the implementation of the Regulation (EU) 2019/1238 on a pan-European Personal Pension Product (PEPP).

Queries in relation to the content of this PS may be addressed to the Policy Department of CySEC at policy@cysec.gov.cy.

Amendments in the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 (the AML Law)

On 6 December 2024, Laws 141(I)/2024 and 118(I)/2024 were officially published in the Gazette of the Republic of Cyprus. These laws introduce amendments to Articles 2, 2A, 61A, 61B, and 61C of the AML Law.

Circular C668: Workshop about the preparation of the register of information under the Digital Operational Resilience Act

On 10 December 2024, CySEC issued Circular C668 to inform Financial Entities of a workshop organised by the European Supervisory Authorities (ESAs) on preparing registers of information under the Digital Operational Resilience Act (DORA), effective from January 17, 2025.

DORA requires financial entities to maintain registers of ICT third-party provider usage. To assist with compliance, the ESAs released draft templates, a data point model, and a reporting technical package in May 2024, alongside a voluntary Dry Run exercise involving 1,000 EU financial entities. Updated validation rules and a reporting technical package will be published in December 2024.

CySEC will integrate these submissions into its XBRL Portal and encourages unregistered entities to sign up.

The virtual workshop, scheduled for December 18, 2024, from 11:00 to 14:00 (EET), will cover register preparation and the 2024 Dry Run outcomes. Registration is open until December 16, 2024, via the provided link.

Policy Statement PS-03-2024: Policy Statement on the fees payable and information to be submitted to CySEC by the entities falling under the scope of MiCAR

On 13 December 2024, CySEC issued PS-03-2024 in order to inform entities falling within the scope of Regulation (EU) 2023/1114 on markets in crypto-assets of its final approach on the applicable fees and information to be submitted to CySEC, following the outcome of the public consultation.

Queries in relation to the content of this Policy Statement may be addressed to the Policy Department of CySEC at policy@cysec.gov.cy

Circular C673: Suspension of redemption of UCITS and AIF units on 24 December 2024

On 20 December 2024, CySEC issued Circular C673, to inform Regulated Entities that UCITS and AIF unit redemptions are suspended on December 24, 2024. This applies to UCITS and AIFs with assets in transferable securities listed on regulated markets and calculated daily.

The decision is based on:

1. Article 20(1) of the UCI Law, allowing CySEC to suspend UCITS redemptions in exceptional cases for unit-holders’ interests.
2. Article 43(3) of the AIF Law, permitting CySEC to suspend AIF redemptions for investor protection or market functioning.
3. December 24, 2024, being a public holiday in most international stock markets.
4. The need to protect unit-holders and ensure market stability.

Obligations under article 20(2) of the UCI Law and article 43 of the AIF Law remain in effect.

Circular C672: Guidance on combatting Proliferation of weapons of mass destruction and Proliferation Financing

On 23 December 2024, CySEC issued Circular C672, with which has issued a practical guide on combatting the proliferation of weapons of mass destruction (WMD) and proliferation financing (PF), available on its website.

The guide includes common definitions, an overview of domestic and international regulatory frameworks, international standards, and obligations related to PF risks. It outlines effective risk assessment and management practices, provides PF risk indicators, and recommends controls to counter WMD proliferation and PF.

The guide aims to enhance regulated entities’ awareness of potential PF risks and will be updated periodically as needed.

Circular C675: EU Regulation 2023/1113 – Transfer of Funds Regulation/ EBA Guidelines/ Reporting Obligations

On 27 December 2024, CySEC issued Circular C675 to inform CASPs that the EU Regulation 2023/1113 on the “Travel Rule” for crypto-asset transfers applies from December 30, 2024. This requires CASPs to include complete originator and beneficiary information with such transfers, per EBA Travel Rule Guidelines (EBA/GL/2024/11).

CySEC will adopt key EBA Guidelines, including risk management of ML/TF factors (EBA/GL/2024/01), AML/CFT supervision (EBA/GL/2023/07), and internal controls for restrictive measures (EBA/GL/2024/15). CASPs must adapt their procedures and technical systems to comply.

Under Articles 17 and 21 of the TFR Regulation, CASPs must establish risk-based procedures for transfers lacking required information and report repeated failures to CySEC.

Circular C674: Transitional period for the provision of services in crypto-assets pursuant to Article 143 (3) of Regulation (EU) 2023/1114 on Markets in Crypto-Assets (‘MiCAR’)

On 30 December 2024, CySEC issued Circular C674  to inform CASPs that under Article 143(3) of MiCAR, CASPs operating before December 30, 2024, may continue until July 1, 2026, or until authorisation is granted or refused under Article 63.

CASPs intending to operate during this transitional period must submit evidence to CySEC by January 10, 2025. This includes an Internal Auditor’s letter confirming services provided before December 30, 2024, and details on:

1. Services provided,
2. Client numbers and geographical distribution,
3. Transaction volumes,
4. Client funds and crypto-assets,
5. Income from services.

The data should be annexed in an Excel spreadsheet and sent to caspregistrations@cysec.gov.cy. For clarifications, contact authorisations@cysec.gov.cy.[/vc_column_text][/vc_column][/vc_row][/vc_section]