Cyprus Enhances Financial Market Regulation with 82 New Approvals in 2023

CySEC has taken a significant step in enhancing the regulatory environment for the financial industry in Cyprus by granting regulatory permission to eighty-two firms until the end of 2023. Highlighting this achievement at a recent news conference centered on the commission's regulatory activities for the year was CySEC Chairman Dr. George Theocharides.

CySEC was in charge of 830 businesses altogether as of February 2024, a 12% growth over the four years before. This rise demonstrates how well-liked the island nation is becoming as a location for investments. The 78 additional license applications for review indicate Dr. Theocharides' ongoing interest in Cyprus as a financial center.

The CySEC started a campaign to alert investors to the dangers of falling for scammers acting as agency employees or building phony websites that seem connected to the CySEC or other regulatory bodies. This program is part of an ongoing effort to protect investors and expose dishonest investment practices.

In terms of compliance, as part of their meticulous examination of regulated businesses, CySEC's Supervision and Anti-Money Laundering/Countering Financing of Terrorism (AML/CFT) Departments carried out more than 700 theme inspections in 2023, both in person and virtually. These activities are crucial to ensuring organizations follow regulatory standards and processes.

In addition, CySEC reviewed the promotional materials that more than thirty-five Cyprus Investment Firms (CIFs) issued, noting any instances where inaccurate information needed to be corrected. The illustrations of CySEC's commitment to upholding equity and openness in financial marketing to protect investor interests. y

Encouragingly, by the end of 2023, the Market Surveillance and Investigations Department, which had begun looking into six CIFs, had completed 42 investigations and was working on 48 more. CySEC sent a criminal case to the Attorney General as an example of its thorough market surveillance and regulatory enforcement.

Next, Dr. Theocharides discussed MiCA, which has completed for completion in 2024. MiCA aims to protect investors and preserve market integrity by targeting crypto-asset service providers. Businesses should increase staffing levels and modify their infrastructure to meet the increased standards.

With the risks associated with these investments, especially with the growing interest in crypto-assets, Dr. Theocharides advises investors to proceed with proper caution. His counsel is consistent with CySEC's proactive efforts to enlighten and safeguard investors against the rapid changes occurring in the financial sector.

CySEC's dedication to creating a transparent and secure investment environment in Cyprus has essentially confirmed by its strict supervisory protocols and regulatory approvals. With the adoption of MiCA and other financial sector reforms, CySEC is in a fantastic position to set the benchmark for regulatory processes and investor protection.