Global Stablecoin Regulation

Cyprus

Last Updated: May 20, 2026

Plasma

Last Updated: May 20, 2026

Cyprus applies the EU’s MiCA framework to stablecoins. ART/EMT rules have applied since 30 Jun 2024, with the rest of MiCA in force since 30 Dec 2024; pre-existing CASPs may operate under the Art. 143(3) transitional regime until 1 Jul 2026. CySEC is the national competent authority for CASPs and MiCA Title II (and parts of Titles III/V/VI), while the Central Bank of Cyprus (CBC) is the competent authority for Title IV (EMTs) and handles e-money/payment-institution supervision. Stablecoins are categorized as EMTs (fiat-referenced) or ARTs (asset-referenced), with issuer obligations on reserves, disclosures, and redemption set directly by MiCA and Level-2 measures.

ESMA — MiCA application & transitional timeline

ESMA — List of MiCA competent authorities

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Legal Status

Legal

Regularity Clarity

5/5

Regime Status

In-Force

Allowed Types

Fiat Referenced

Asset Referenced

Classification

E-Money

Crypto Asset

Stablecoins in Cyprus are classified under the EU MiCA regime as e-money tokens (EMTs) and asset-referenced tokens (ARTs). EMTs reference a single official currency and must be redeemable at par in funds; only credit institutions or electronic-money institutions may issue them and CBC is the competent authority for Title IV matters. ARTs reference another value or a basket (e.g., currencies, commodities, crypto-assets) and require MiCA authorisation with reserve/custody and disclosure duties; CySEC is the NCA for these (Title III for non-credit institutions) and for CASPs/marketing rules (Titles II/V/VI). Tokens that do not reference assets (often called “algorithmic”) are not EMT/ART and fall under MiCA’s general crypto-asset rules.

ESMA – MiCA application & transitional timeline

ESMA – List of competent authorities under MiCA

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Regulatory Authorities

Cyprus Securities and Exchange Commission (CySEC)

CySEC is the national competent authority (NCA) for Crypto-Asset Service Providers (CASPs) and issuers of crypto-assets (excluding EMTs issued by credit institutions). It is responsible for the authorization, licensing, and ongoing supervision of CASPs, ensuring compliance with MiCA, AML/CFT obligations, governance, and risk management standards. CySEC also operates an Innovation Hub and Regulatory Sandbox to support fintech and crypto innovation.

Central Bank of Cyprus (CBC)

MiCA competent authority for Title IV (EMTs) and Title III where the issuer is a credit institution. CBC licenses and supervises electronic-money and payment institutions under national law and handles prudential/payment matters relevant to EMT issuance.

Top Issuers

Monerium (EURe)

SGForge (EURCV, USDCV)

AllUnity (EURAU)

Circle (USDC, EURC)

Paxos (USDG, USDP, PYUSD)

Consumer Protection

Reserve Requirements

ARTs: keep a segregated reserve at qualified custodians and invest only in highly liquid/low-risk instruments per EBA RTS. EMTs: safeguard funds received and invest them safely in the same currency. Supervision in Cyprus: CySEC/CBC per MiCA titles.

Auditing

Issuers must arrange an independent audit of the reserve every six months and notify/publish results; ART issuers also publish monthly data on tokens in circulation and reserve value/composition.

Redemption Rights

EMTs: redeemable at any time and at par value, in funds. ARTs: permanent right to redeem for market value in funds or via delivery of referenced assets, as set in MiCA.

Recent Developments

Remittance Race

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