CySEC Sets Deadline For Сrypto-asset Service Providers To Secure MiCA Authorisation

by THEFUTURE.TEAM

December 24, 2025

The Cyprus Securities and Exchange Commission (CySEC) has issued a definitive notice to crypto-asset service providers (CASPs) operating within the Republic: all such entities must apply for authorisation under the Markets in Crypto-Assets Regulation (MiCA) by February 27, 2026, to ensure their continued legal operation.

Transition Provisions For Registered Entities

Following its announcement on October 17, 2024, and the subsequent Circular No. 674, CySEC clarified that firms registered under the existing national framework may continue operating throughout the transitional phase. This period extends until a decision on their MiCA application is rendered or until the transitional period concludes on July 1, 2026, whichever occurs first.

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Mandatory Wind-Down Protocols

In its statement, the regulator warned that any CASP failing to secure MiCA authorisation by the stipulated deadline must submit a wind-down plan. Unauthorised providers will be prohibited from offering crypto-asset services once the transitional period ends, reinforcing the imperative for compliance.

Cross-Border Service Regulations

The commission further emphasized that the cross-border provision of services to other EU member states is contingent upon the host country’s legislative provisions and any applicable grandfathering regimes. Firms are required to adhere strictly to guidance issued by the European Securities And Markets Authority (ESMA) to ensure full regulatory compliance.

Impact On The Cypriot Financial Sector

This regulatory shift marks a significant transformation for the Cypriot financial sector, aligning its digital asset operations with the rigorous standards of the European Union. CASPs that remain registered continue to be bound by domestic obligations and Regulation (EU) 2023/1113, underscoring CySEC’s commitment to enhancing confidence, transparency, and security in the crypto-asset market.

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ECB Raises Deposit Facility Rate For First Time In Nearly Two Years

by THEFUTURE.TEAM

June 15, 2026

Economic Shift: ECB Reverses Years Of Declining Rates

The European Central Bank (ECB) confirmed its first interest rate increase in nearly two years, raising the deposit facility rate in response to inflationary pressures and geopolitical uncertainty. Marking a shift in monetary policy, the move follows a period of rate cuts aimed at supporting economic activity and easing financing conditions.

Reevaluation Of Bank Liquidity Strategies

Although the immediate impact will be felt by only part of the borrowing market, the decision carries broader implications for banks. During the period of lower rates, banks maintained significant amounts of excess liquidity with the ECB as returns on these funds declined alongside deposit rates. With the deposit facility rate increasing by 0.25 percentage points to 2.25% from 2.00%, returns on surplus liquidity are expected to improve.

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Higher interest rates, however, could also increase borrowing costs and influence lending conditions across the banking sector.

Transitioning Investment Approaches And Market Dynamics

Banks had already begun diversifying the use of excess liquidity through investments in bonds and by expanding lending activities.

Successive reductions in the deposit facility rate from 3.00% at the end of 2024 through four consecutive cuts in early 2025 reflected a more accommodative policy stance as inflation pressures moderated.

Sectoral Impact And Future Outlook

Data from the ECB’s 2025 monetary policy report show that liquidity in the Cypriot banking system declined from €19.2 billion at the end of 2024 to €18.6 billion by the close of 2025. Despite the reduction, liquidity levels remained elevated. Outstanding loans increased from €27.6 billion to €31.7 billion, while deposits recorded a slight decline. Customer deposits continued to account for the vast majority of funding. By the fourth quarter of 2025, they represented 95% of total liabilities, highlighting their importance as the banking sector’s primary source of financing.

Changes in ECB rates are expected to influence how banks manage liquidity and allocate capital as monetary conditions evolve.

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