Cyprus introduces bill to enforce EU crypto regulations

On October 8, 2026, the Cypriot government submitted the Markets in Crypto-Assets Bill to the House of Representatives to establish a national framework for the European Union's MiCA regulation. This legislative move, which follows cabinet approval granted on September 10, seeks to strengthen oversight of the digital asset sector by expanding the enforcement authorities of the Central Bank of Cyprus (CBC) and the Cyprus Securities and Exchange Commission (CySEC).

The proposed framework introduces rigorous compliance requirements and substantial penalties for market misconduct. Under the provisions of the bill, which aligns with Article 111 of the EU MiCA regulation, companies found guilty of serious market abuse, including insider dealing or market manipulation, could face fines of at least €15 million or 15% of their annual turnover. Furthermore, the legislation grants regulatory bodies the authority to investigate digital asset businesses, restrict their operational activities, and withdraw necessary authorizations in cases of non-compliance. These measures are intended to address the recent rapid expansion of the crypto market while enhancing investor protection against fraudulent activities.