Cyprus leads all European Union countries in the supply of cross-border investment services, Cyprus Securities and Exchange Commission (CySEC) Chairman George Theocharides said during a Parliamentary Finance Commission meeting in Nicosia.
The financial services sector has witnessed 12% growth over the past four years in Cyprus, particularly in investment companies, he said.
Theocharides attributed this success to rapid growth in the investment companies sector over the past 10 years, drawing companies from Israel due to Cyprus’ proximity and EU membership. He emphasized the development of an ecosystem with expertise in IT, technology, compliance, and legal aspects.
As Cyprus prepares for new regulations in the crypto-assets sector, Theocharides highlighted the importance of protecting investors. The MiCA regulation, set to be fully implemented by the end of 2024, will establish a comprehensive EU-wide framework for companies offering crypto services.
The CySEC president stressed efforts to enhance financial literacy, especially regarding the risks associated with cryptocurrencies. He acknowledged the sector’s potential dangers while emphasizing the importance of informing and engaging the public.
The implementation of European regulations will provide increased protection for Cypriot investors in crypto assets. Theocharides outlined the direct economic benefits for Cyprus, including the establishment of companies, employment opportunities, and alternative financing for the economy.
CySEC reported administrative fines totaling 6 million euros over the past three years, emphasizing the importance of compliance. Theocharides highlighted the collection of fines through settlements, ensuring immediate payment and preventing legal challenges.
Looking ahead, CySEC is gearing up for challenges, including the Digital Operational Resilience Act (DORA) and combating money laundering. The president highlighted preparations for risk prevention mechanisms to safeguard against various factors.
The budget for 2024 reveals increased revenues and spending for CySEC, reflecting the growing demands on the organization. The president mentioned the focus on staff remuneration and technological upgrades, with plans to hire 20 new staff members in 2024.
