There is “intense interest” in cryptocurrency business in Cyprus, the head of the Securities and Exchange Commission (SEC) said on Monday.

SEC chairman Giorgos Theocharides was speaking to journalists following a session of the House finance committee which reviewed SEC’s proposed budget for fiscal year 2026.

Currently, Theocharides said, eight companies are licensed to trade in cryptocurrencies, while 21 more entities have applied.

According to Theocharides, Cypriot nationals are increasingly engaged in the cryptocurrency business.

Beyond cryptocurrency, and regarding the SEC’s operations in general, Theocharides told MPs that as at the end of 2025 the number of SEC-regulated entities came to 808.

Over the last three years, the SEC has imposed €7.3 million in administrative fines on investment firms for various violations.

In Cyprus, cryptocurrency is regulated primarily via the SEC under AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism) laws. However, crypto isn’t legal tender and general investment rules apply.

In November 2020 the SEC passed Circular C417. The purpose of the circular is to ensure that Cyprus Investment Firms (CIFs) adequately cover their investments in cryptocurrencies and adequately manage the risks associated with cryptocurrency trading.

There are three requirements that CIFs must satisfy to operate within Cyprus. First, CIFs must receive authorisation from the SEC to trade in cryptocurrencies. Second, CIFs must acquire sufficient capital to cover their cryptocurrency investments. Essentially, CIFs must determine a capital adequacy ratio.

Third, CIFs must carefully manage the risks associated with cryptocurrency investments. Specifically, the SEC urged CIFs to revisit their risk management procedures periodically and ensure that all risks are duly considered. Additionally, CySEC charged CIFs with the duty to mitigate trading risks in cryptocurrency, including operational, cybersecurity, and reputational risks.

The SEC was not always open to the cryptocurrency business. In early 2014, when the market was still unregulated, Bitcoin marketers by the name of Neo & Bee set up shop in Nicosia.

By April of the same year, the company was shuttered amid reports of insolvency and alleged embezzlement of people’s funds on crypto exchanges.