In a significant development, Cyprus has asserted itself as the leading European Union member state in the provision of cross-border investment services, according to George Theocharides, Chairman of the Cyprus Securities and Exchange Commission (CySEC). This declaration came during a detailed presentation of the
commission's 2024 budget at a session of the House Finance on Monday.
Theocharides underscored the commendable growth in the financial services sector, specifically in investment firms and fund managers, revealing a noteworthy 12% increase over the past four years. Cyprus, he emphasized, holds the distinction of being the inaugural European country to offer cross-border investment services in this particular domain.
Attributing this success to the swift evolution of the investment sector over the last decade, Theocharides pointed to the geographical proximity to Israel as a pivotal factor attracting companies from the neighboring nation. This influx, he noted, has significantly contributed to the establishment of a robust and dynamic ecosystem in Cyprus.
As of the end of November 2023, CySEC was overseeing a total of 837 entities, with an additional 85 new applications undergoing examination for authorization. Theocharides stressed the commission's unwavering commitment to investor protection and the active promotion of financial literacy, especially in the context of the burgeoning crypto-assets landscape.
Turning attention to future regulatory initiatives, Theocharides outlined CySEC's ambitious plans to introduce a comprehensive regulatory framework for crypto-assets, slated to commence in 2025. The implementation process aligns closely with the parameters laid out in the European regulation MiCA (Markets in Crypto-Assets), which received approval from the European Parliament in June 2023. This all-encompassing regulatory framework for crypto services across the EU is expected to be fully implemented by the conclusion of 2024.
The CySEC Chairman underscored the commission's dedication to being fully prepared for applications from companies seeking authorization to provide cross-border services throughout Europe under the forthcoming regulatory framework. The primary objective remains the enhancement of investor protection, with a specific focus on the emerging and dynamic crypto-asset sector.
With the impending enforcement of the European regulation, companies based in Cyprus will be duly authorized to offer platforms for the purchase of crypto-assets. This, in turn, promises to provide investors with an elevated level of protection within the rapidly evolving crypto landscape. Theocharides emphasized the strategic importance of staying ahead of the curve in the evolving financial landscape and ensuring a secure environment for both domestic and international investors.
By fLEXI tEAM
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