As Cyprus continues to strengthen its position as a financial hub, the cryptocurrency market presents a compelling new frontier for regulated brokers offering traditional financial products and services. With the global crypto market now valued at $4 trillion and bitcoin ranking among the world’s top 10 assets by market capitalization, Cyprus-based firms are uniquely positioned to capture this growth based on existing European regulatory frameworks, including the Markets in Crypto-Assets (MiCA) regulation, and their strategic location.
For regulated brokers in Cyprus, MiCA’s regulatory clarity and a more mature market create both stability and growth potential. This translates into new revenue streams from trading spreads, transaction fees, and cross‑selling products. At the same time, stablecoins have become essential financial infrastructure — processing $38 trillion across 1.3 billion transfers last year — and they enable more efficient, instant settlement, better liquidity management, and 24/7 execution that traditional banking systems can hardly match.
In a recent webinar, we explored how Cyprus and other EU -based brokers can capitalize on this opportunity while navigating the EU’s nascent regulatory landscape.
The MiCA framework: Creating clarity
The EU’s Markets in Crypto-Assets (MiCA) regulation establishes a comprehensive framework for crypto-asset service providers (CASPs) and token issuers, including stablecoin issuers, creating a level playing field across the Union. MiCA is directly applicable, but enforcement is carried out by national “competent authorities”; in Cyprus, the Cyprus Securities and Exchange Commission (CySEC) has been designated as the national MiCA authority. MiCA defines ten in-scope services that closely mirror traditional investment and payment services – such as crypto custody, reception and transmission of orders, investment advice, and portfolio management – thereby aligning crypto activity with familiar regulatory concepts. Under Title V, MiCA sets out general obligations for all CASPs and additional, risk-based obligations tailored to specific services.
The advantage of existing licenses
While there are possibilities for brokers to partner with MiCA regulated entities to offer crypto-asset services to their clients without their own MiCA license, it typically means surrendering client relationships for crypto-asset services ( e..g introducing clients to CASPs) and always (substantial) revenue splits.
For brokers already regulated under MiFID, MiCA offers a simplified path to offering crypto-asset services through its Article 60. Rather than undergoing an entire authorization process at their local regulator, existing regulated firms can extend their services to crypto assets through a simplified notification process. MiCA and additional EBA guidance has set out clearly what information needs to be submitted as part of this notification, focused on documentation of operational risk controls and compliance frameworks. The submission is required 40 days before launching crypto services, and then crypto services can be offered throughout the European Economic Area.
This notification pathway is available only for services already offered in traditional markets though – a broker regulated for portfolio management can notify for crypto portfolio management but not for new service categories, such as crypto custody or transmission of orders.
How Chainalysis can help
Chainalysis offers a comprehensive suite of risk management and compliance tools designed specifically for regulated entities entering the crypto space:
- Transaction Monitoring System tracks fund flows to and from your platform
- Entity Risk/Wallet Screener assesses risk during customer onboarding
- Enhanced Due Diligence tools support deeper investigation for SAR filings
Why now is the time to act
Moving now positions CySEC‑regulated brokers to capture deposits, set client behavior, and build liquidity depth that is hard to dislodge. Establishing a compliant crypto footprint today is the most effective way to mitigate increasing competitive pressure from crypto exchanges – and other financial players – moving into tokenized securities, turning a potential risk into a measurable growth channel grounded in strong controls and supervisory confidence.
Looking ahead
As Cyprus strengthens its role as a Mediterranean financial hub, its regulated brokers see a clear growth opportunity in crypto services under MiCA’s harmonized regime. For MiFID‑authorized firms, MiCA’s Article 60 notification route can enable equivalent crypto‑asset services without a full new authorization process.
The combination of EU‑wide regulatory clarity, CySEC’s supervisory engagement, and rising client demand makes this the right moment for Cyprus brokers to focus not on whether to enter crypto, but on how quickly and effectively to build a compliant offering.
Request a demo to learn how our solutions can support your journey into digital assets.