Cyprus crypto bill proposes tougher oversight and multimillion-euro penalties
A bill submitted to parliament would strengthen Cyprus’s crypto enforcement framework, expand regulators’ powers and introduce substantial fines for regulatory breaches.
Nicosia, Cyprus. Cyprus is advancing legislation to tighten cryptocurrency supervision, with expanded enforcement powers for the Central Bank of Cyprus (CBC) and the Cyprus Securities and Exchange Commission (CySEC). The proposal provides for multimillion-euro penalties, including €15 million sanctions for serious violations, although higher amounts may apply.
National framework for EU rules
The Markets in Crypto-Assets Bill of 2026 was submitted to the House of Representatives on October 8, following cabinet approval on September 10. It would create the domestic enforcement framework for the European Union’s Markets in Crypto-Assets Regulation, commonly known as MiCA.
Parliamentary records show that the proposal was tabled with other financial legislation, advancing Cyprus’s preparations to enforce the EU requirements nationally.
The proposed framework aims to make supervision of digital assets more consistent, improve protections for investors and tackle misconduct following substantial growth in the sector over recent years.
Penalties for market abuse
The bill would introduce significant financial sanctions for businesses and individuals that breach regulatory obligations.
Article 111 of MiCA provides for corporate fines reaching at least €15 million or 15 per cent of yearly turnover, according to the calculation applicable, for serious market-abuse offences. These include insider dealing, illegal disclosure of inside information and manipulation of markets.
For individuals, the European framework allows fines reaching €5 million for certain market-abuse offences.
The €15 million amount is not an overall maximum. A company’s turnover and the type of violation can result in a larger financial sanction.
Separate sanctions for other breaches
Different penalty provisions cover failures relating to authorisation, disclosure requirements and crypto-asset service provision.
Depending on which obligations are breached, the EU regulation allows corporate penalties calculated at 3 per cent, 5 per cent or 12.5 per cent of yearly turnover.
For specified categories of corporate violations, authorities must also be empowered to levy fines reaching at least €5 million.
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