The Cyprus Securities and Exchange Commission (CySEC) on Friday officially adopted a series of guidelines issued by the European Securities and Markets Authority (ESMA) concerning crypto-asset service providers (CASPs) operating under the Markets in Crypto-Assets Regulation (MiCA).

In its circular, addressed to all CASPs, CySEC announced the adoption of ESMA’s guidelines on transfer services, reverse solicitation, and portfolio management activities related to crypto-assets.

CySEC explained that the ESMA guidelines on transfer services for crypto-assets were issued on February 26, 2025.

These guidelines are based on Article 82(2) of the MiCA Regulation and aim to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision.

They also seek to ensure the common, uniform and consistent application of the provisions of Article 82 of MiCA.

The commission clarified that these guidelines concern CASPs that act as providers of transfer services for crypto-assets on behalf of clients, as defined in Article 3(1)(26) of Regulation (EU) 2023/1114.

This regulation, formally known as Regulation (EU) 2023/1114 of the European Parliament and of the Council of May 31, 2023, governs markets in crypto-assets and amends several previous EU regulations and directives.

CySEC emphasised that the guidelines on transfer services include detailed procedures and policies, including client rights, in the context of investor protection for crypto-asset transfer services.

In addition, CySEC informed CASPs of its adoption of ESMA’s guidelines on reverse solicitation under MiCA, which were issued on December 17, 2024.

Although these guidelines are primarily directed at competent authorities, CySEC specifically drew the attention of both current and prospective CASPs to paragraphs 16 and 22, as well as the non-exhaustive list of examples detailing circumstances where a third-country firm is likely to be considered as soliciting clients within the European Union.

CySEC stated that the examples provided by ESMA are particularly important for CASPs to understand how their cross-border activities may be interpreted under MiCA’s rules on reverse solicitation.

Furthermore, CySEC announced the adoption of ESMA’s guidelines on certain aspects of the suitability requirements and the format of periodic statements for portfolio management activities related to crypto-assets. These guidelines were issued on March 26, 2025.

The guidelines on portfolio management activities are based on Article 81(15) of the MiCA Regulation and are designed to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision.

They also ensure the consistent application of Articles 81(1), (7), (8), (10), (11), (12) and (14) of MiCA.

CySEC stated that these guidelines apply to CASPs that provide advice on crypto-assets or manage portfolios of crypto-assets, as defined in Articles 3(1)(24) and 3(1)(25) of MiCA.

The commission confirmed that all three sets of guidelines – on transfer services, reverse solicitation and portfolio management activities – will come into effect 60 calendar days from their publication date on ESMA’s website in all official EU languages.

Finally, it should noted that CySEC chairman George Theocharides signed the circular announcing these important regulatory updates.