According to Cointelegraph, the EU will transition from national laws to unified MiCA regulations on December 30. The Cyprus Securities and Exchange Commission (CySEC) has frozen CASP applications and warned market participants of the upcoming changes.

CySEC will no longer accept CASP applications submitted under Cyprus national law from October 17. Successfully registered CASPs may continue to operate until July 1, 2026, unless they are granted or refused authorization under Article 63 of MiCA.

After the MiCA regulation comes into effect, CASP will comply with the European Commission’s supervisory technical standards and implementation technical standards. CySEC recommends that interested parties refer to the draft technical standards issued by the European Securities and Markets Authority (ESMA).

CySEC will stop accepting service notices from EEA entities under national rules after October 30. Entities that have previously submitted notices may operate under local entity conditions until July 1, 2026.

CySEC reminded Cypriot entities that they should study ESMA standards in preparation for the transition to MiCA. Other regulators have also expressed concerns. The Netherlands Financial Markets Authority said in September that it was investigating potential market manipulation schemes.

ESMA proposed some changes to MiCA, including requiring CASPs to conduct cybersecurity audits and background checks. The European Parliament passed the MiCA regulation in April 2023, and the provisions on stablecoins came into effect on June 30.