“Despite geopolitical developments, macroeconomic uncertainties, the effects of the pandemic and rapid technological development, the Cypriot capital market has demonstrated remarkable resilience,” the now-former Chairman of the Cyprus Securities & Exchange Commission, Dr. George Theocharides, has said.
More specefically, in a forward within a report presenting a review of the work carried out by CySEC over the past half a decade, Theocharides said, "The last five years have been a period of intense challenges and significant transformations for capital markets internationally. Despite geopolitical developments, macroeconomic uncertainties, the effects of the pandemic and rapid technological development, the Cypriot capital market has demonstrated remarkable resilience, maintaining its momentum and strengthening its position in the European financial environment."
He continued that, "Within this demanding context, the Cyprus Securities and Exchange Commission (CSE) continued to perform its institutional role with consistency and efficiency, adapting its supervisory and regulatory work to the new conditions. Through the strengthening of supervision, the utilization of modern technological tools, the close cooperation with European and international bodies, as well as the active participation in the formulation of new regulatory frameworks, the CSE substantially contributed to ensuring financial stability, investor protection and the smooth functioning of the market."
As Theocharides noted, "The results of this effort are reflected both in the increased activity and the continued interest in licensing new supervised entities, as well as in the strengthening of the supervisory work, the promotion of financial literacy, the implementation of important European reforms and the upgrading of CySEC's systems and procedures. At the same time, the active presence of CySEC in European and international fora has highlighted the increasingly essential role of Cyprus in shaping the policies that determine the future of capital markets."
"This review presents the most significant achievements, initiatives and developments of the period 2021-2026, highlighting CySEC's continuous effort to shape a modern, reliable and competitive supervisory environment for the benefit of investors, the market and the Cypriot economy more broadly," he concluded.
Supervisory role
Among other things, the review noted that as of June 2026, CySEC supervises 815 entities, a 1.12% increase since 2021.
It also reported that 63 new licensing applications are under review, showing continued interest in Cyprus as a financial center.
It also pointed out that CySEC actively supported major European regulatory reforms.
When it comes to supervisory work, the review noted that CySEC strengthened its supervisory capacity through investment in advanced technological systems and supervisory tools and enhanced monitoring of CIFs (Cypriot Investment Firms), especially regarding aggressive or misleading marketing practices under MiFID II.
It also noted significant staff expansion: from 151 employees in 2021 to 200+, soon exceeding 250.
CySEC also conducted over 4,000 onsite, remote, and thematic inspections, the review pointed out, while there were also hundreds of investigations by the Investigations Department.
Fines and other measures
On the chapter of Fines and Other Measures, CySEC reported that there had been more than €12 million in administrative sanctions over five years, over €9 million imposed on CIFs and about €1 million on issuers.
There were also over 800 corrective actions requested, eight CIF licenses revoked, 47 voluntary withdrawals, 10 license applications rejected, 22 withdrawn by applicants.
As reported in CySEC's review, 20 cases were referred to the Attorney General, eight to MOKAS and four to the police over the five-year period.
Investor protection
When it comes to investor protection, CySEC has prioritised financial literacy through guides, campaigns, school/university lectures, and collaborations.
Mention was also made of CySEC's participation in the National Strategy for Financial Literacy (KEHAP), joint campaigns with ESMA and other European regulators, 517 warnings being issued for unauthorized online investment websites and the launch of a new corporate identity and upgraded website.
Legislative and regulatory developments
On legislative and regulatory developments, according to its review, CySEC worked on EU frameworks for Crowdfunding and PEPPs, the preparation for MiCAR, DORA, and the DLT Pilot Regime, the implementation of Cyprus’ new Sanctions and Restrictive Measures framework (EMEK), active participation in the new EU AML authority AMLA, and MONEYVAL’s 2024 report upgraded Cyprus’ compliance, especially in crypto‑asset supervision.
Technology and systems
When it comes to CySEC's activities in connection with technology and systems, its key technological achievements included the launch of the Central Register of Beneficial Owners of Trusts (2022), the creation of an Enterprise Risk Management Framework, the launch of the Regulatory Sandbox (June 2024), and work on Blockchain and Artificial Intelligence initiatives.
Events and international presence
On events and its international presence, the review pointed out that CySEC hosted the IOSCO European Regional Committee meeting in Nicosia, the ESMA Board of Supervisors and Management Board meetings (April 2026), during Cyprus’ EU Council Presidency and a major 30‑year anniversary conference with high‑profile speakers.
CySEC also led efforts to revitalise the Cyprus Stock Exchange.
Cyprus' Presidency of the EU Council
CySEC played a central role during Cyprus’ EU Presidency where over 15 CySEC officers participated in negotiations and key files included the Market Infrastructure Package, Retail Investment Strategy, Savings and Investments Union and SFDR revision. CySEC also chaired ESMA’s Risk Standing Committee since 2022, the review noted.
The full report, in Greek, can be viewed here.
