Analyst: Cyprus Securities and Exchange Commission plans to conduct a review of encryption asset custodians

The Cyprus Securities and Exchange Commission (CySEC) plans to conduct on-site and off-site reviews of some of the authorized encrypted asset custodians between the second half of 2026 and the first half of 2027. The initiative, coordinated by the European Securities and Markets Authority (ESMA), focuses on operational resilience issues such as the storage of private keys and wallets, access control, trade monitoring, incident response, smart contract security and third-party risk. CySEC indicated that compliance requirements were mandatory and would be the basis for screening follow-up。