CySEC to Audit Crypto Custodians H2 2026 to H1 2027

CySEC launches ESMA-coordinated audits of crypto custodians from H2 2026 to H1 2027, targeting key security and governance compliance.

Woofun AI reports that the Cyprus Securities and Exchange Commission will execute on-site inspections and off-site audits of approved crypto asset service providers from the second half of 2026 to the first half of 2027. Institutions providing digital asset custody services are subject to random checks under this initiative.

This action aligns with the 2026 joint regulatory effort coordinated by ESMA, evaluating organizational governance, control frameworks, key management, private key security, wallet storage, and access controls. The audits also cover transaction monitoring, incident response, smart contract security, and third-party risk management. CySEC mandates these standards, using compliance readiness to select institutions for subsequent inspections.