Cyprus to Begin On-Site Inspections of Digital-Asset Custody Providers
Summary
- CySEC said it plans to select CASPs that provide digital-asset custody services for on-site and written inspections.
- The inspections will run from the second half of this year through the first half of next year, with authorities set to assess operational security and the stability of technology infrastructure with a focus on risks related to distributed ledger technology (DLT).
- The review will cover governance and internal controls, management of private keys and storage devices, wallet custody and access controls, transaction controls, monitoring and incident-response systems, smart-contract security, and third-party risk management.
Forecast Trend Report by Period
Cyprus financial authorities are set to begin on-site inspections of digital-asset custody providers.
Bitcoin News reported on August 9 that the Cyprus Securities and Exchange Commission, or CySEC, plans to select some local crypto-asset service providers, or CASPs, for on-site and written inspections as part of a supervisory action led by the European Securities and Markets Authority, or ESMA.
The inspections will run from the second half of this year through the first half of next year.
The main focus will be CASPs that provide digital-asset custody services. Authorities plan to assess firms' operational security and the stability of their technology infrastructure, with a focus on risks related to distributed ledger technology, or DLT.
The review will cover governance and internal controls, management of private keys and storage devices, security protocols including wallet custody and access controls, transaction controls, monitoring and incident-response systems, smart-contract security, and third-party risk management.
Uk Jin
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