The Cyprus Securities and Exchange Commission (CySEC) has announced a halt on new applications for crypto asset service providers (CASPs) as the European Union moves toward a unified regulatory framework under the Markets in Crypto-Assets (MiCA) regulations. Starting October 17, no new CASP applications will be accepted under national law, with the transition to MiCA regulations scheduled for December 30. Those who register before the deadline will be allowed to operate under existing regulations until July 1, 2026. CASPs will then need to comply with new European Commission Regulatory Technical Standards, which are yet to be published. The CySEC also plans to stop accepting notifications from European Economic Area entities regarding service provisions in Cyprus by October 30. In preparation for MiCA, the CySEC has advised stakeholders to review the Draft Technical Standards issued by the European Securities and Markets Authority. Regulatory concerns have already emerged from other authorities regarding potential fraud schemes that may be more easily identified under the forthcoming regulations.

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