Over the last three years, the Cyprus Securities and Exchange Commission (CySEC) issued €7.9 million in fines for regulatory breaches, underscoring its commitment to compliance. By the end of 2024, CySEC was supervising 834 entities, an increase of nearly 12% from the previous year.
Chairman Theoharides Highlights Priorities
Dr. George Theoharides, CySEC’s Chairman, presented the 2025–2027 budget to the Parliamentary Finance Committee. He thanked the government for its ongoing support and stressed CySEC’s role in maintaining financial stability in Cyprus. He also identified key trends affecting the industry, such as increased regulatory demands, advancements in digital technologies, and a shift toward sustainable investing.
Despite global uncertainties, Cyprus’s investment services sector continues to grow and remains central to the country’s economy.
Strengthened Oversight and Crypto Regulation
CySEC is prioritizing tighter regulation and investor protection. The number of supervised entities has grown significantly over five years, with 60 new applications under review. The European MiCA regulation on crypto-assets is expected to strengthen oversight and attract blockchain businesses to Cyprus.
Investing in Technology and Cybersecurity
With financial services becoming increasingly digital, CySEC is adopting advanced tools to improve monitoring and supervision. It is also preparing for the full rollout of the Digital Operational Resilience Act (DORA), which aims to improve the cybersecurity defenses of financial institutions. These steps align with the commission’s focus on adapting to the rapid evolution of technology in the financial sector.
CySEC has also maintained strong enforcement efforts, as reflected in the €7.9 million in fines over three years. Alongside this, the commission continues to promote financial literacy through education campaigns, helping investors make informed decisions.
Responding to European Regulatory Changes
New European regulations are expected to add to CySEC’s responsibilities while strengthening the investment services framework. With a proposed €17.5 million budget for 2025, CySEC plans to focus spending on staff salaries and technology upgrades. Revenue is projected to rise from 2026, following a revised fee structure for supervised entities.
Dr. Theoharides emphasized the need for resources to manage increasingly complex regulations and maintain Cyprus’s status as a global financial hub.
