Cyprus Regulator to Launch Crypto Custody Audits in 2026

The Cyprus Securities and Exchange Commission plans to start intensive inspections of authorized crypto asset service providers. These checks will include both on site visits and desk based reviews. The program is scheduled to run from the second half of 2026 through the middle of 2027.

Regulators are focusing on the safety of custody services and underlying infrastructure. By inspecting how firms handle client assets, officials aim to identify potential risks before they turn into problems for the market. This move aligns with broader efforts to create a safer environment for digital asset trading in the region.

Traders and investors should watch how these firms respond to the upcoming requirements. Enhanced oversight often leads to higher compliance costs but can also signal a more mature market. These audits will likely set a standard for how companies operating within the jurisdiction protect user holdings moving forward.