CySEC’s Role Under MiCA: Authorisation and Supervision

Under MiCA, each EU Member State designates a national competent authority responsible for authorising and supervising crypto-asset service providers and token issuers. In Cyprus, that role falls to the Cyprus Securities and Exchange Commission (CySEC), building on its long-standing experience regulating investment firms, funds and market intermediaries.

Authorisation Function

CySEC assesses CASP applications, reviews notifications from entities relying on simplified routes such as Article 60, and determines whether applicants meet MiCA’s governance, capital and operational standards. It also authorises issuers of asset-referenced and e-money tokens where Cyprus is the home Member State.

Ongoing Supervision

Once authorised, CASPs remain under CySEC’s supervision. This includes periodic reporting obligations, on-site and off-site inspections, and the power to impose corrective measures or sanctions where firms fail to meet their obligations. CySEC has also issued sector-specific circulars clarifying its expectations on matters such as prudential reporting and reserve of assets requirements.

Coordination With EU Bodies

CySEC does not operate in isolation. It coordinates with the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and other national competent authorities to ensure consistent application of MiCA across the EEA, particularly for firms passporting services into multiple Member States.

What This Means for Applicants

Firms should expect CySEC’s review to be thorough and to draw on its established supervisory culture from the investment services sector. Engaging proactively and transparently with the regulator, and being prepared to respond promptly to queries, tends to result in a smoother authorisation process.

Enalian advises crypto-asset businesses, investment firms and payment institutions on MiCA authorisation, notification and ongoing compliance in Cyprus. If you are planning a CASP application or reviewing your regulatory status, our team can guide you through the process. Get in touch with our team to discuss your specific circumstances.

This article is provided for general informational purposes only and does not constitute legal, tax or regulatory advice. Regulatory requirements are subject to change; readers should seek specific advice on their circumstances before taking action.