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CySEC MiCA CASP Transition & Article 60 Notification for Authorized Law 87(I)/2017 CIFs

With Regulation (EU) 2023/1114 (MiCA) fully applicable across the EEA and national CASP grandfathering ending by July 2026, authorized Cyprus Investment Firms enjoy a powerful fast-track advantage under MiCA Article 60(3).

By Lukas Lindqvist, CEFAReview not recorded · Updated
CySEC MiCA CASP Transition & Article 60 Notification for Authorized Law 87(I)/2017 CIFs — Euro Firm Ledger 2026 quantitative & supervisory data card
Euro Firm Ledger (CySEC CIF Authorisation, EUR 20,000 ICF Reforms & Cyprus Safeguarding): MiCA Reg. 2023/1114 Art. 60(3) 40-day CIF equivalence notifications, B(1) custody gates, and TFR rules.Source: Euro Firm Ledger Institutional Research DeskLicense: CC-BY-4.0

Between 2021 and December 2024, CySEC operated a national AML-based Crypto-Asset Services Provider (CASP) Register under Section 61E of the Prevention and Suppression of Money Laundering Law (Law 188(I)/2007)—which carried zero EEA passporting rights. On 30 December 2024, Title V of MiCA Regulation (EU) 2023/1114 entered full force across all 30 EEA states, establishing a unified EU MiCA Regulation passport alongside a strict transitional sunset (ending 1 July 2026 at the latest). Crucially, existing Law 87(I)/2017 Cyprus Investment Firms possess a massive strategic shortcut that standalone crypto startups lack: MiCA Article 60(3) Simplified Equivalence Notification (40 working days instead of a full Article 62 ground-up license)!

Within our CySEC CIF & ICF master guide and the CySEC safeguarding hub, compare how European multi-asset and digital-asset houses—such as Bitpanda, Amdax, Coinhouse, CoinGate, Change, B2Prime, and CAPEX.com—choose between MiCA Article 60 CIF Notification and MiCA Article 62 Standalone CASP Authorization.

MiCA Article 60(3) CIF Equivalence Mapping vs Standalone Article 62 CASP#

Under MiCA Article 60(3), an authorized MiFID II investment firm (a Cyprus CIF!) does NOT need a second standalone CASP license to provide crypto-asset services that are equivalent to the MiFID II investment services for which it is already authorized—it submits an Article 60(7) Notification Pack to CySEC at least 40 working days before launching!

Quantitative Distribution · Standalone CASP Class & Capital (MiCA Annex IV)
Standalone CASP Class & Capital (MiCA Annex IV)Spot Crypto Covered by EUR 20k CySEC ICF?
01Custody & Administration of…Class 2 CASP: E…02Execution of Orders / RTO f…Class 1 CASP: E…03Exchange of Crypto-for-Fund…Class 2 CASP: E…04Operation of a Crypto Tradi…Class 3 CASP: E…05Portfolio Mgmt / Advice on …Class 1 CASP: E…
MiCA Crypto-Asset Service (Art. 3(1)(16))Equivalent Law 87(I)/2017 CIF Service Required (MiCA Art. 60(3))Standalone CASP Class & Capital (MiCA Annex IV)Spot Crypto Covered by EUR 20k CySEC ICF?
Custody & Administration of Crypto-AssetsAnnex I Sec. B(1) (Safekeeping & administration of financial instruments)Class 2 CASP: EUR 125,000 (or Class 3: EUR 150k)NO! Spot MiCA crypto-assets are excluded from MiFID ICF (DI87-07)—protected via Art. 70/75 segregation & insurance!
Execution of Orders / RTO for CryptoAnnex I Sec. A(2) / A(1) (Execution / Reception & transmission of orders)Class 1 CASP: EUR 50,000NO (requires explicit non-ICF client risk warning!)
Exchange of Crypto-for-Funds or Crypto-for-CryptoAnnex I Sec. A(3) (Dealing on own account — EUR 750k CIF!)Class 2 CASP: EUR 125,000NO (principal spot quote book; separate from BTC CFDs!)
Operation of a Crypto Trading PlatformAnnex I Sec. A(8) or A(9) (Operation of an MTF or OTF)Class 3 CASP: EUR 150,000NO (subject to MiCA Art. 76 market-abuse surveillance)
Portfolio Mgmt / Advice on Crypto-AssetsAnnex I Sec. A(4) / A(5) (Portfolio management / Investment advice)Class 1 CASP: EUR 50,000NO (requires MiCA Art. 81 crypto suitability assessment!)
40-working-day MiCA Article 60(3) and 60(7) notification workflow for an existing CySEC Law 87(I)/2017 Cyprus Investment Firm launching EEA spot crypto services
40-working-day MiCA Article 60(3) and 60(7) notification workflow for an existing CySEC Law 87(I)/2017 Cyprus Investment Firm launching EEA spot crypto servicesVerified Exhibit

Critical Trap #1: Spot Crypto vs Crypto CFDs Inside the Same CIF App!#

Look at the fourth column of the table above—this is the single highest-priority disclosure gate audited by CySEC when a multi-asset CIF offers BOTH leveraged Bitcoin CFDs (MiFID II) AND unleveraged Spot Bitcoin (MiCA) inside the same mobile app:

  • Bitcoin CFD (MiFID II Annex I Sec. C(9)): Capped at 2:1 retail leverage, covered by 50% margin close-out and Negative Balance Protection, and ELIGIBLE for CySEC's EUR 20,000 Investor Compensation Fund (DI87-07)!
  • Spot Bitcoin (MiCA Crypto-Asset): 1:1 unleveraged, safeguarded on-chain in segregated wallets under MiCA Articles 70 and 75 (bankruptcy-remote from the CIF's corporate assets), NOT covered by the EUR 20,000 MiFID Investor Compensation Fund! Under ESMA's MiCA Guidelines on situations where a firm offers both regulated MiFID and MiCA/unregulated products, the UI MUST display an unmistakable pre-trade warning distinguishing MiFID ICF-covered instruments from MiCA spot wallets!

Critical Trap #2: Missing Annex I Section B(1) Blocks MiCA Crypto Custody Under Article 60!#

Check your CIF license certificate carefully before filing an Article 60 notification! Many older EUR 750,000 CFD-only CIFs hold A1, A2, A3 (without Annex I Section B(1) Safekeeping and administration of financial instruments if they never held cash equities). Under MiCA Article 60(3)(a), a CIF can notify for Custody and administration of crypto-assets on behalf of clients ONLY IF it already holds MiFID II Annex I Section B(1) authorization—otherwise it must first apply to CySEC to extend its CIF license to include B(1) before using Article 60!

Prudential Capital Comparison: CIF Adding Spot Crypto via Art. 60 vs Sister Art. 62 CASP Subsidiary#

Compare the Combined Group Own-Funds Requirement of housing spot crypto directly inside an existing Limassol Class 2 CIF (Article 60) versus incorporating a separate Cyprus Class 2/3 CASP Subsidiary (Article 62) subject to MiCA Article 67 (max(Annex IV Floor, 25% FOR)):

Formula or model from the articleNot independently verified
Group_Capital_Architecture_CIF_Art60_vs_Separate_MiCA_Art62_CASP:
  • Suppose Group Launches Spot Crypto Exchange + Custody:
  • ProjectedSpotCryptoFixedOverheads_Increment = EUR 600,000 / year
  • ClientSpotCryptoCustodyWallets = EUR 150,000,000 (Zero Proprietary Spot Crypto Held; Instant Matched Liquidity!)
  • Option1 (SeparateStandaloneMiCAArticle62Class2CASP_Subsidiary):
  • MiCAArt67OwnFunds = max(EUR 125,000AnnexIVClass2, 0.25 * 600,000FOR) = EUR 150,000 Own Funds / Insurance!
  • Advantage: Isolates crypto wallet operational liability from MiFID CIF + avoids CRR3 250%/1250% crypto balance-sheet drag!
  • Cost: Separate Cyprus Four-Eyes management, separate audit, + full 5-to-9-month Art. 62 authorization queue!
  • Option2 (ExistingEUR750kCIFUsingMiCAArticle6040Day_Notification):
  • IncrementalIFRFORInsideCIF = 0.25 * 600,000 = +EUR 150,000 FOR (often absorbed inside existing EUR 750k PMR / KFR!)
  • CRITICALCRR3BALANCESHEETRULE:
  • Keep CIF Proprietary Unbacked Crypto House Float near EUR 0! Any unhedged BTC/ETH held on CIF's own balance sheet
  • triggers punitive CRR3 Art. 501d Crypto-Asset Exposure Capital (100% / 1250% RW = EUR 1 CET1 per EUR 1 BTC!)
Prudential minimum capital and authorization timeline comparison across MiCA Class 1/2/3 standalone CASPs versus MiCA Article 60 CIF notifications
Prudential minimum capital and authorization timeline comparison across MiCA Class 1/2/3 standalone CASPs versus MiCA Article 60 CIF notificationsVerified Exhibit

Non-MiCA Stablecoin Delisting & Transfer of Funds Regulation (TFR 2023/1113)#

Every Cyprus CIF or CASP operating under MiCA must enforce two strict operational rules audited by CySEC and ESMA in 2025–2026: (1) prohibiting public Exchange/Trading Platform services on non-authorized Asset-Referenced Tokens (ARTs) and E-Money Tokens (EMTs) (requiring EEA retail migration toward MiCA-authorized EURC/USDC/EURCV issuers pursuant to ESMA's January 2025 Supervisory Statement); and (2) 100% Travel Rule originator/beneficiary messaging (Regulation (EU) 2023/1113) from EUR 0 on CASP-to-CASP transfers plus ownership verification on self-hosted wallets exceeding EUR 1,000 alongside Cyprus Law 87(I)/2017 CIF authorization rules!

Frequently asked questions

Did registration on CySEC’s pre-2025 national AML CASP Register automatically grant an EU-wide MiCA passport?

No! National AML registrations under Law 188(I)/2007 were strictly domestic and carry zero EU passporting rights—legacy registrants must obtain full MiCA Article 62 authorization from CySEC before the transitional grandfathering window closes (by 1 July 2026 at the latest)!

Does a CIF that ONLY offers cash-settled Bitcoin and Ethereum CFDs (no real on-chain crypto) need a MiCA notification?

No! Financial instruments under MiFID II—including cash-settled crypto CFDs, crypto futures, and transferable security tokens—remain 100% governed by MiFID II / Law 87(I)/2017 rather than MiCA (Per MiCA Article 2(4)(a)).

Can a CySEC MiCA-notified CIF passport spot crypto trading into Germany, France, and Spain without local NCA relicensing?

Yes! Once an authorized CIF completes its MiCA Article 60 notification with CySEC and submits a cross-border MiCA Article 65 passporting notice, it can provide spot crypto services across all 30 EEA Member States on ESMA’s central MiCA Register!

What happens to client spot crypto if a MiCA-compliant Cyprus CIF or CASP becomes insolvent?

Even though the EUR 20,000 MiFID ICF does not apply to spot crypto, MiCA Articles 70 and 75 mandate strict legal and operational on-chain/ledger segregation so that client crypto-assets never form part of the CASP’s insolvency estate or fall prey to general creditors!

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Published
13 November 2026
Updated
14 November 2026
Author
Lukas Lindqvist, CEFA
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Lukas Lindqvist, CEFA. (2026, November 14). CySEC MiCA CASP Transition & Article 60 Notification for Authorized Law 87(I)/2017 CIFs. Euro Firm Ledger. https://eurofirmledger.com/bulletins/cysec-casp-mica-grandfathering-transition-law-87-i-2017-firms

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CySEC MiCA CASP Transition & Article 60 CIF Notification | Euro Firm Ledger