Administrative fines totaling pound 2.3 million were imposed in 2025 by the Cyprus Securities and Exchange Commission (CySEC) as a result of its supervisory inspections, CySEC Chairman George Theocharides said at a press conference on Wednesday, presenting the Commission’s annual review.
Specifically, CySEC conducted approximately 600 on-site and off-site inspections of Cyprus Investment Firms (CIFs), as well as extensive reviews of asset managers and collective investment entities, issuers, and market infrastructures.
According to Theocharides, supervision focused on professional conduct, sustainability risks, data quality, capital adequacy, and compliance with the MiFID II, DORA, and MiCA, as well as emerging challenges such as the promotion of investment products through “finfluencers”.
In addition, he noted that special attention was given on preventing money laundering, with 43 thematic inspections and enhanced monitoring of compliance with EU restrictive measures, especially those related to Russia.
As a result of these inspections, administrative fines amounting to pound 2.3 million were imposed, while over the past three years total fines reached pound 7.3 million. Beyond the administrative sanctions imposed, Theocharides stated that corrective actions were requested in over 170 cases, four licenses were revoked, and five suspensions of securities trading were carried out on the Cyprus Stock Exchange (CSE). In addition, two cases were referred to the Police, five to the Attorney General, and two to MOKAS (Cyprus Financial Intelligence Unit).
CySEC also issued dozens of warnings to alert the investing public regarding unlicensed online entities and strengthened public awareness campaigns aimed at protecting citizens from digital fraud.
According to CySEC’s Chairman, “despite the difficult economic environment, mainly due to external factors,” the number of supervised entities recorded an increase of 2.53% over the past five years (2020-2025), which, as he noted, “is an indication that Cyprus continues to offer substantial advantages as an investment destination.”
Specifically, 47 new licenses were approved in 2025. Of these, 26 operate in collective investments, 12 in the provision of investment services, 8 in crypto-asset services, and one in the provision of administrative services.
At the end of 2025, the total number of supervised entities reached 808, while a further 61 license applications are under evaluation. Assets under management in collective investment schemes amounted to pound 11.4 billion, ‘with a significant portion invested in the Cypriot economy,’ he said.
CySEC’s active role during the EU Presidency
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The Chairman of the Commission highlighted the active role CySEC will play during Cyprus’ Presidency of the Council of the EU. As he noted, preparation for the Presidency was a key priority for the Commission throughout 2025, with more than 15 CySEC staff members appointed as experts on important legislative proposals.
Specifically, he said, CySEC is actively involved in the Market Infrastructure Package, the Retail Investment Strategy, and the revision of the Sustainable Finance Disclosure Regulation (SFDR).
At the same time, CySEC is responsible for hosting the meetings of the ESMA Management Board and the ESMA Board of Supervisors in April 2026.
‘CySEC sees the Cyprus’ Presidency as another opportunity to make a substantive contribution to the European dialogue in shaping a modern, reliable, and resilient framework for the EU capital markets,’ Theocharides added.
In conclusion, Theocharides said that Cyprus’ assumption of the Presidency of the Council of the EU in 2026, significant regulatory reforms at the European level, and the acceleration of digital transformation ‘make the coming period particularly demanding. CySEC remains fully committed to its mission of protecting investors, ensuring the smooth functioning of the market, and supporting the sustainable development of the investment sector.’
Finally, he stressed that accountability and transparency are core pillars of CySEC’s operations. ‘We are committed to continuing with the same responsibility and dedication in the years ahead,’ he noted.