Limassol, Cyprus. The Cyprus Securities and Exchange Commission warned regulated financial firms to strengthen anti-money laundering controls following the end of the European Union’s transition period under the Markets in Crypto-Assets Regulation on July 1, 2026. The regulator also highlighted its role in Cyprus’ Presidency of the Council of the European Union and pointed to discussions on the growing regulatory focus in digital assets.
MiCA transition and AML guidance
In a circular issued this week, CySEC drew attention to new guidance published by the EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism, outlining money laundering and terrorist financing risks that could emerge as the crypto-asset market adjusts to the new regulatory framework.
CySEC said that, following the end of the transition period, firms wishing to continue providing crypto-asset services within the European Union must now be authorised as MiCA-compliant Crypto-Asset Service Providers.
Expected market changes
The regulator said the end of the transition period is expected to trigger significant structural changes across the EU crypto-asset sector, as unauthorised virtual asset service providers leave the market and their customers either close their accounts or transfer to authorised providers.
Cyprus EU Council Presidency
CySEC said on Thursday that it played an active role in negotiations on major legislative initiatives during Cyprus’ Presidency of the Council of the European Union, which concluded on June 30, 2026.
According to the regulator, its officials participated throughout the six-month Presidency in Council working groups, providing technical expertise and supporting negotiations on key European Union legislative proposals.
CySEC said staff from its policy, ongoing and thematic supervision, authorisations and legal departments took part in the technical work of the Council during the Presidency.
Focus on financial policy and digital assets
The regulator said its contribution focused on policy initiatives aimed at strengthening European capital markets and financial supervision.
The broader shift in discussion around crypto-assets toward regulation, institutional confidence, practical use cases and trust was also reflected at the Digital Assets and the Future of Finance Summit 2026, presented by ECOMMBX this week at City of Dreams Mediterranean in Limassol.
At the event, regulators, bankers, fintech executives, legal experts and technology providers discussed how digital assets are moving from the edges of finance into a more regulated and practical environment.
