The number of entities supervised by the Cyprus Securities and Exchange Commission (CySEC) has grown by 11.8 per cent over the past five years, according to the commission’s chairman George Theocharides.

He added that CySEC was supervising 834 entities by the end of 2024, with 60 additional licensing applications currently under review.

Theocharides explained that these figures reflect Cyprus’ continued attractiveness as an investment destination.

He also pointed out that there has been a surge of interest from companies seeking licences under the recently implemented European Markets in Crypto-Assets Regulation (MiCA).

€7.8 million in fines collected

Addressing CySEC’s enforcement activities, Theocharides revealed that over the past three years, the commission has imposed administrative penalties totalling €7.9 million.

Of this amount, €6.3 million was levied against Cyprus Investment Firms (CIFs) for violations of applicable legislation.

“All funds collected are deposited into the Republic’s consolidated fund,” Theocharides said.

He added that “the imposition of fines is not the commission’s ultimate goal”.

“Instead”, he continued, “CySEC aims for the full compliance of supervised entities with their legal and regulatory obligations”.

Digital transformation

Looking ahead to 2025, Theocharides confirmed that CySEC will continue advancing the digital transformation of the financial sector in Cyprus and the European Union, with artificial intelligence playing a pivotal role.

The commission, he said, “is investing in proactive supervision by leveraging specialised systems to keep pace with the rapid digitisation of the sector and the entities it oversees”.

Enhanced regulatory framework

Theocharides also addressed ongoing updates to the regulatory framework.

A series of new European directives and regulations is currently being implemented, which is expected to strengthen the supervision of investment services.

Some of these will be incorporated into national law by the end of the year.

Additionally, he stated that CySEC is placing a strong emphasis on financial literacy, conducting various initiatives to raise awareness and educate investors.

New pricing policy, budget plans

Discussing the commission’s 2025 budget, Theocharides said that expenditures are projected at €17.5 million, primarily covering staff salaries and technological upgrades.

In addition, revenues are expected to reach €15.5 million, including state funding.

The chairman also disclosed plans for a new pricing policy set to gradually take effect for supervised entities by the end of this year.

This policy is expected to significantly boost CySEC’s revenues from 2026 onwards.