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Cyprus Targets On-Site Audits for Crypto Custodians

Published

9 August 2026

Topic

regulatory

◆ Sectors

Crypto & Web3

◆ Geography

Cyprus

◆ Source

Read at news.bitcoin.com →

◆ Verified

Fusion42 · 28 August 2026 · Fusion42 review

The Cyprus Securities and Exchange Commission (CySEC) will conduct on-site inspections and desk-based audits of authorized crypto asset service providers from the second half of 2026 through mid-2027, focusing on operational resilience and infrastructure risks. This initiative, coordinated with the European Securities and Markets Authority (ESMA), forms part of a broader EU effort to enforce strict compliance in crypto custody operations.

This Wire brief sits within Fusion42's coverage of Crypto & Web3, and 2 sources have reported it.

◆ ◆ The Wire takeaway

You face new regulatory inspections that will expose weak security and governance in crypto custody. Strengthen your operational controls immediately or risk losing market access in Cyprus.

◆ Coverage

2 sources · 9 Aug 2026

◆ Related on Wire

◆ Topics

Crypto & Web3crypto-regulationcustody-compliancecysecesmaoperational-resilience