CySEC plans on-site inspections and desk-based reviews of a representative sample of authorized local crypto-asset service providers from the second half of 2026 through the first half of 2027, with a focus on firms approved to provide digital-asset custody services. The exercise is part of the European Securities and Markets Authority's Common Supervisory Action for 2026 and will test operational resilience, governance and control frameworks, key and storage management, private-key security, wallet storage and access controls, transaction controls, monitoring and incident response, smart-contract security and third-party risk management, particularly around distributed ledger technology risks. CySEC chairperson George Theocharides said the standards in the circular are mandatory, and the regulator added that firms' compliance readiness will be the baseline for selecting CASPs for inspection. The move aligns Cyprus with other EU national competent authorities as regulators tighten scrutiny of crypto custodians viewed as high-risk for investor protection and financial stability.