The Central Bank of Cyprus (CBC) on Friday announced the launch of a comprehensive licensing and supervisory strategy aimed at enhancing oversight and governance of electronic money institutions and payment institutions.

The CBC said that the strategy was developed with the assistance of an international consultancy firm.

In collaboration with CBC officials, the firm conducted an analysis of the sector and its inherent risks.

The findings were presented to the CBC’s board of directors during its meeting on December 19, 2024.

The primary goal of the strategy, the CBC stated, is to “ensure the prudent and sustainable development of the sector“.

It involves strengthening licensing processes for institutions seeking to join the market and bolstering supervisory measures.

The CBC also stated that the new supervisory approach will incorporate risk-based indicators tailored to each institution, alongside an expansion of its supervisory tools.

Furthermore, the strategy includes the adoption of best practices for the sector’s operations.

To implement the strategy effectively, the CBC has established a new directorate for the supervision of electronic money and payment institutions.

This directorate will “oversee the sector’s preventive supervision”, the CBC mentioned.

Currently, the CBC supervises 26 electronic money institutions and 11 payment institutions.

It also has several new licensing applications under review at various stages of the process.