# CySEC MiCA CASP Transition & Article 60 CIF Notification

> Navigate MiCA Regulation (EU) 2023/1114 in Cyprus: Article 60 simplified CASP notification for Law 87(I)/2017 CIFs vs Article 62 CASP licensing.

Canonical: https://eurofirmledger.com/bulletins/cysec-casp-mica-grandfathering-transition-law-87-i-2017-firms
Last updated: 2026-11-14T20:01:57.382Z

**Publication:** Euro Firm Ledger
**Category:** Cysec Cif Icf Safeguarding Directives
**Published:** 2026-11-13T10:40:25.915Z
**Author:** Lukas Lindqvist, CEFA (Certified European Financial Analyst (EFFAS/CEFA, Frankfurt & Zurich))
**Reviewer:** Not recorded

## Answer-first summary

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).

## Key takeaways

- Under MiCA Article 60(3), an authorized Cyprus Investment Firm can launch equivalent EEA-wide spot crypto-asset services via a 40-working-day CySEC notification rather than a standalone CASP license.
- To notify for MiCA crypto custody under Article 60(3), a CIF must already hold MiFID II Annex I Section B(1) safekeeping authorization on its CySEC charter.
- Spot crypto-assets under MiCA are NOT covered by CySEC’s EUR 20,000 MiFID Investor Compensation Fund—apps offering both CFDs and spot crypto must display explicit pre-trade ICF boundary warnings.
- CIFs holding spot Bitcoin or Ether directly on their own corporate balance sheet face punitive 100% (1250% RW) CRR3 own-funds deductions, making instant agency/matched routing or separate CASP subsidiaries critical.

## Related financial entities

- **Cyprus Investment Services and Activities Law (CySEC)** (CYSEC-CIF) — license: Statutory framework administered by CySEC transposing MiFID II, governing the authorization and operational requirements of Cypriot Investment Firms.
- **Markets in Crypto-Assets Regulation (EU) 2023/1114** (EU-MICA) — license: Groundbreaking European regulation establishing uniform requirements for the offer to the public and admission to trading of crypto-assets and licensing of CASPs.
- **Markets in Crypto-Assets Regulation (MiCA)** (MiCA) — license: Regulation (EU) 2023/1114 establishing a harmonized European regulatory framework for crypto-asset issuers and crypto-asset service providers (CASPs).

## Analysis

Between 2021 and December 2024, **[CySEC](/competent-authorities/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](/passports/mica-regulation-eu-2023-1114)** entered full force across all 30 EEA states, establishing a unified **[EU MiCA Regulation](/passports/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](/bulletins/cysec-cif-authorisation-eur-20000-icf-safeguarding-guide-2026) and the [CySEC safeguarding hub](/topics/cysec-cif-icf-safeguarding-directives), compare how European multi-asset and digital-asset houses—such as [Bitpanda](/firms/bitpanda), [Amdax](/firms/amdax), [Coinhouse](/firms/coinhouse), [CoinGate](/firms/coingate), [Change](/firms/change), [B2Prime](/firms/b2prime), and [CAPEX.com](/firms/capex)—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!

| 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-Assets** | **Annex 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 Crypto** | **Annex I Sec. A(2) / A(1)** (*Execution / Reception & transmission of orders*) | **Class 1 CASP: EUR 50,000** | **NO** (requires explicit non-ICF client risk warning!) |
| **Exchange of Crypto-for-Funds or Crypto-for-Crypto** | **Annex I Sec. A(3)** (*Dealing on own account* — EUR 750k CIF!) | **Class 2 CASP: EUR 125,000** | **NO** (principal spot quote book; separate from BTC CFDs!) |
| **Operation of a Crypto Trading Platform** | **Annex I Sec. A(8) or A(9)** (*Operation of an MTF or OTF*) | **Class 3 CASP: EUR 150,000** | **NO** (subject to MiCA Art. 76 market-abuse surveillance) |
| **Portfolio Mgmt / Advice on Crypto-Assets** | **Annex I Sec. A(4) / A(5)** (*Portfolio management / Investment advice*) | **Class 1 CASP: EUR 50,000** | **NO** (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](/api/figure?type=flow&title=MiCA%20Article%2060%283%29%2040-Day%20Fast-Track%20Notification%20for%20CySEC%20CIFs&subtitle=How%20an%20authorized%20EUR%20750k%20CIF%20adds%20spot%20BTC%2FETH%2FUSDC%20trading%20%26%20custody%20across%2030%20EEA%20states&steps=1.%20Equivalence%20Audit%3A%3AMatch%20CIF%20licenses%20%28A1%E2%80%93A5%20%2B%20B1%20custody!%29%20to%20equivalent%20MiCA%20services%7C2.%20MPC%20Custody%20%26%20DORA%3A%3ADeploy%20DORA-tested%20MPC%20wallet%20segregation%2C%20Travel%20Rule%20%26%20whitepapers%7C3.%20Art.%2060%287%29%20Filing%3A%3ASubmit%20notification%20to%20CySEC%20%3E%3D40%20working%20days%20pre-launch%20%2820d%20completeness%29%7C4.%20Art.%2065%20EEA%20Passport%3A%3ANotify%20EU%20host%20states%20-%3E%20ESMA%20MiCA%20Register%20live%20across%2030%20EEA%20markets!&metrics=NOTIFICATION%20CLOCK%3A%3A40%20Working%20Days%3A%3AMiCA%20Art.%2060%283%29%20%26%2060%287%29%20SLA%7CGRANDFATHER%20SUNSET%3A%3A1%20July%202026%20Max%3A%3AMiCA%20Art.%20143%283%29%20hard%20EU%20cliff%7CSPOT%20CRYPTO%20ICF%3A%3AEUR%200%20%28Excluded!%29%3A%3AMust%20clearly%20warn%20retail%20clients!%7CTRAVEL%20RULE%3A%3AReg.%202023%2F1113%3A%3AEUR%200%20threshold%20CASP-to-CASP%20TFR)

## 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)](/bulletins/cysec-directive-di87-07-icf-90pct-eur-20000-compensation-cap)**!
- **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
Group_Capital_Architecture_CIF_Art60_vs_Separate_MiCA_Art62_CASP:
 Suppose Group Launches Spot Crypto Exchange + Custody:
 Projected_Spot_Crypto_Fixed_Overheads_Increment = EUR 600,000 / year
 Client_Spot_Crypto_Custody_Wallets = EUR 150,000,000 (Zero Proprietary Spot Crypto Held; Instant Matched Liquidity!)

 Option_1 (Separate_Standalone_MiCA_Article_62_Class_2_CASP_Subsidiary):
 MiCA_Art_67_Own_Funds = max(EUR 125,000_Annex_IV_Class2, 0.25 * 600,000_FOR) = 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!

 Option_2 (Existing_EUR_750k_CIF_Using_MiCA_Article_60_40_Day_Notification):
 Incremental_IFR_FOR_Inside_CIF = 0.25 * 600,000 = +EUR 150,000 FOR (often absorbed inside existing EUR 750k PMR / KFR!)
 CRITICAL_CRR3_BALANCE_SHEET_RULE:
 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](/api/figure?type=bars&title=CySEC%20MiCA%20Authorization%20Routes%3A%20Capital%20Floors%20%26%20Timelines&subtitle=Comparing%20standalone%20MiCA%20Annex%20IV%20CASPs%20against%20fast-track%20Article%2060%283%29%20CIF%20notifications&steps=MiCA%20Class%201%20CASP%20%28Art.%2062%29%3A%3AEUR%2050k%20floor%20%28or%2025%25%20FOR%29%20%20%20RTO%2FExecution%2FAdvice%20%20%20~6%E2%80%939m%20queue%7CMiCA%20Class%202%20CASP%20%28Art.%2062%29%3A%3AEUR%20125k%20floor%20%28or%2025%25%20FOR%29%20%20%20Custody%20%26%20Principal%20Exchange%7CMiCA%20Class%203%20CASP%20%28Art.%2062%29%3A%3AEUR%20150k%20floor%20%28or%2025%25%20FOR%29%20%20%20Multilateral%20Crypto%20Trading%20Platform%7CCIF%20Art.%2060%283%29%20Fast-Track%3A%3AUses%20existing%20CIF%20EUR%20150k%2F750k%20CET1%20%20%2040-working-day%20notification!&metrics=ART.%2060%20TIMELINE%3A%3A40%20Working%20Days%3A%3AAfter%2020-day%20completeness%20check%7CSTABLECOIN%20GATE%3A%3AMiCA%20EMT%20%2F%20ART%3A%3ADelist%20non-compliant%20USDT%20pairs!%7CTRAVEL%20RULE%20%28TFR%29%3A%3AEUR%200%20De%20Minimis%3A%3AReg.%202023%2F1113%20%2B%20self-custody%20%3E1k%7CCYSEC%20LEGACY%20CASP%3A%3ASunsets%20by%202026%3A%3AMust%20convert%20to%20full%20MiCA%20CASP!)

## 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](/bulletins/cyprus-law-87-i-2017-cif-authorisation-tiers-6-month-timeline)!

## 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!


## Source URLs

- https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R1114
- https://www.cysec.gov.cy/en-GB/entities/crypto-asset-services-providers-casps/
- https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica

## Citation

- APA: Lukas Lindqvist, CEFA. (2026). 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
- Canonical article: [CySEC MiCA CASP Transition & Article 60 Notification for Authorized Law 87(I)/2017 CIFs](https://eurofirmledger.com/bulletins/cysec-casp-mica-grandfathering-transition-law-87-i-2017-firms)
- Site research index: [Euro Firm Ledger](https://eurofirmledger.com/llms-full.txt)