The Cyprus Securities and Exchange Commission (CySEC) this week held an event with the Hellenic Capital Market Commission (HCMC), during which they discussed the challenges facing European markets.

The event, the first of its kind to be held in Nicosia, took place on Wednesday. At the meeting, George Theocharides, chairman of CySEC, highlighted the rapid development of financial technology and the demand for sustainable investments.

He explained that these developments are significantly reshaping the global investment landscape, and require close supervision.

Moreover, both regulators welcomed the implementation of the Markets in Crypto-Assets Regulation (MiCA) to create uniform market rules for crypto-assets later this year and the Digital Operational Resilience Act (DORA), which aims to strengthen the operational resilience of the financial sector.

The event also involved a roundtable discussion on the legislative framework under discussion in the EU and the impact of technology on the investment sector. The discussion included Vasiliki Lazarakou, Chair of the HCMC.

The commission noted that the roundtable discussion examined the opportunities and risks associated with the adoption of financial technologies and new ESG investments, including greenwashing, and underscored the importance of the role of regulators to protect investors.

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CySEC chairman George Theocharides with Vasiliki Lazarakou, head of the HCMC

Welcoming Lazarakou to Cyprus, Theocharides said he hoped the discussion would be the first of many with other regulators.

“Important changes to financial legislation, alongside risks posed by the rapid development of new technologies and the demand for more sustainable investment products, emphasise the need for regulatory authorities to work collaboratively to enhance their effectiveness and address common challenges” the CySEC chairman stated.

On her part, Lazarakou said that “economic activity is drastically changed by technological developments, especially in the area of capital markets, and therefore it is necessary for supervisory authorities to adapt to a digital environment to live up to their role with reliability and efficiency”.

“The protection and equal treatment of investors remains the key priority for authorities who are now being called upon to act in interconnected markets,” Lazarakou stated, noting that “therefore, a framework for cross-border cooperation between them is needed”.

“The cooperation between the Cyprus Securities and Exchange Commission and the Hellenic Capital Market Commission ensures speed in the exchange of information and the robust management of supervisory issues,” the HCMC chief added.

The commission noted that the meeting, held at the Hilton Nicosia, was attended by Cyprus’ Minister of Finance Makis Keravnos, the Deputy Minister to the President Irene Piki, members of the Standing Committee of Finance and Budgetary Affairs, as well as other government officials and finance sector stakeholders.