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CySEC Adopts ESMA Guidelines For CASPs Under MiCA

Regulatory Update Drives Uniform Supervisory Practices

The Cyprus Securities and Exchange Commission (CySEC) has officially incorporated several guidelines from the European Securities and Markets Authority (ESMA) that impact crypto-asset service providers (CASPs) under the Markets in Crypto-Assets Regulation (MiCA). With this initiative, CySEC’s circular outlines detailed expectations regarding transfer services, reverse solicitation, and portfolio management activities related to crypto-assets.

Clear Directives For Transfer Services

Issued on February 26, 2025, the ESMA guidelines on transfer services are grounded in Article 82(2) of MiCA. They are designed to instill consistency and efficiency within the European financial supervision system while reinforcing a uniform approach to applying MiCA’s provisions. Furthermore, the guidelines delineate robust procedures and client rights measures intended to heighten investor protection for CASPs involved in transferring crypto-assets.

Enhanced Transparency In Reverse Solicitation

CySEC also highlighted ESMA’s guidelines on reverse solicitation, introduced on December 17, 2024. Although these guidelines primarily target competent authorities, they serve as a critical reference for both existing and prospective CASPs. The circular draws attention to specific paragraphs and illustrative examples that elucidate circumstances under which a third-country firm might be deemed to be soliciting clients within the European Union.

Standardizing Portfolio Management Requirements

The third set of guidelines, released on March 26, 2025, addresses portfolio management activities. Based on Article 81(15) of MiCA, these standards require CASPs to adhere to defined requirements regarding the suitability of crypto-asset advice and the formatting of periodic statements. This move is aimed at fostering consistent application of several MiCA provisions, thereby ensuring that supervisory practices remain effective across the board.

Implementation Timeline And Executive Endorsement

All three sets of guidelines will take effect 60 calendar days following their publication on ESMA’s website in all official EU languages. The endorsement of these measures by CySEC Chairman George Theocharides underscores the sector’s commitment to transparency, regulatory coherence, and enhanced investor protection in the rapidly evolving crypto market.

Middle East Tensions Cast Uncertainty Over Cyprus Tourism Sector

Cyprus’ tourism sector is entering a period of heightened uncertainty as regional tensions in the Middle East begin to affect travel sentiment. Although the country is not directly involved in the conflict, industry stakeholders report growing caution among travelers, tour operators and hospitality businesses.

Heightened Concern Across The Sector

Tourism officials and industry representatives are closely monitoring developments. While maintaining a measured public stance, they remain in contact with international partners and travel operators to assess potential changes in travel programs. Despite the uncertainty, many industry figures believe that once tensions ease, targeted marketing campaigns and competitive pricing could help restore Cyprus’ position as a preferred Mediterranean destination.

Operational Adaptations And Labour Considerations

According to reports by Philenews, hotel operators recently met with representatives of the Deputy Ministry of Tourism to discuss the operational challenges emerging from the situation. Labour issues were a central focus of the discussions. Many hotel businesses had originally planned to reopen in March to align with travel agents’ seasonal programs and extend the tourism season. Other establishments had scheduled openings in early April to capitalize on the Easter holiday period for both Catholic and Orthodox travelers.

Revised Timelines Amid Uncertainty

These plans are now being reassessed. Some hotel operators have proposed extending the full suspension of staff employment for up to two additional months, potentially until the end of April, while awaiting clearer developments in the region.

Such a decision would prolong the current period of unemployment for many tourism workers, highlighting the economic impact the crisis could have on the sector. An alternative proposal involves partial reopening, allowing hotels to operate with only essential personnel based on confirmed bookings. Industry representatives also discussed the possibility of requesting financial assistance from the European Union to offset potential losses.

Mixed Signals For The Summer Season

Despite the uncertainty, travel agents have so far maintained their scheduled flight programs to Cyprus for the summer period, including charter flights between May and October. This suggests that confidence in the destination remains relatively stable among some market segments.

At the same time, hotel operators report cancellations not only for the March–April period but also for certain summer bookings, while demand for new reservations has slowed. Industry stakeholders nevertheless remain hopeful that an easing of regional tensions would quickly restore traveler confidence.

Air Connectivity Gradually Restored

Air connectivity with key markets is also beginning to stabilize. Hermes Airports recently confirmed that several routes between Cyprus and European destinations have resumed. Emirates has restarted flights to Larnaca, strengthening connections with international markets. Haris Papacharalambous, president of the Association of Cyprus Travel and Tourism Agents (ACTTA), noted that the return of routes from the United Kingdom and airlines within the Lufthansa Group is gradually restoring Cyprus’ connectivity with major tourism markets.

While the tourism industry braces for continued volatility, the consensus remains that a swift end to the hostilities in the Middle East is essential for Cyprus to regain its historical vibrancy as a top tourist destination.

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