Cyprus is preparing to implement EU regulations on cryptocurrency regulation.

By the end of 2024, Cyprus is scheduled to implement European Union regulations regarding the regulation of crypto assets.

These regulations, known as MiCA – Markets in Crypto Assets, aim to protect investors’ interests, enhance transparency on cryptocurrency exchanges, and combat money laundering.

George Theoharidis, Chairman of the Cyprus Securities and Exchange Commission, noted that one of the key changes expected by the end of 2024 will be the implementation of the Regulation on Crypto Asset Markets. He also emphasized that companies involved in cryptocurrencies, cryptocurrency exchanges, and developers must be prepared for these changes.

The introduction of new MiCA requirements may lead to increased operating costs and the need for additional staff.

This step aligns Cyprus with other European Union countries that are also actively working to create a transparent and secure environment for cryptocurrency operations.

Regarding the MiCA (Markets in Crypto-assets) regulations:

MiCA (Markets in Crypto-assets) represents a regulatory framework aimed at regulating the crypto-assets markets, with the goal of establishing unified standards for virtual assets across European Union countries to protect users and investors in this sphere.

Before the introduction of MiCA in the European Union, there were no common rules for regulating the cryptocurrency market. However, the MiCA regulation creates a single legal basis for cryptocurrencies throughout the EU.

MiCA norms will apply to legal and natural persons, as well as companies dealing with crypto-assets, their trading, or providing related services within the European Union. The main goal of the MiCA regulation is to protect the interests of investors and ensure financial stability, while simultaneously fostering innovation and increasing the attractiveness of the crypto-assets sector.

The final implementation deadline for MiCA for all 27 EU member states is set for July 2026, including a 36-month transitional period.

Cyprus strictly adheres to European Union directives and other regulatory acts in the financial field, paying special attention to compliance with standards and ensuring stability in financial markets. The implementation of MiCA becomes an integral part of this commitment to compliance and regulation of cryptocurrency markets in accordance with pan-European standards.