CySEC to Inspect Crypto Asset Service Providers in 2026-2027, Focus on Private Key Security
The Cyprus Securities and Exchange Commission (CySEC) has announced plans to conduct both on-site inspections and off-site reviews of authorized crypto asset service providers, with the checks scheduled across the second half of 2026 and the first half of 2027. Institutions selected for sampling will include those providing digital asset custody services. The effort is part of the 2026 common supervisory action coordinated by the European Securities and Markets Authority (ESMA). According to CySEC, the inspections will assess institutional governance and control frameworks, key and storage management, private key security, wallet storage and access controls. The scope also covers trading controls, monitoring and incident response, smart contract security and third-party risk management. CySEC noted that the relevant standards are mandatory, and that each institution's compliance readiness will be used as a basis for determining which entities are selected for subsequent inspections. Specific institutions and the total number of service providers to be examined have not been disclosed.








