CySEC Reports €2.3 Million in Fines and Highlights 2025 Achievements Ahead of EU Presidency

The Cyprus Securities and Exchange Commission (CySEC) carried out extensive supervisory work in 2025, resulting in administrative sanctions totaling €2.3 million, President George Theocharides said at a press conference on Wednesday, reviewing the Commission’s activities over the year. The regulatory authority conducted approximately 600 on-site and remote inspections of Cyprus Investment Firms (CIFs), alongside extensive reviews of Collective Investment Managers and Undertakings, Issuers, and Market Infrastructures.

Mr. Theocharides said the supervision focused on professional conduct, sustainability risks, data quality, capital adequacy, and compliance with regulatory frameworks including MiFID II, DORA, and MiCA. In addition, CySEC addressed emerging challenges, such as the promotion of investment products through influential individuals, commonly referred to as “finfluencers.” Particular attention was also placed on preventing money laundering, with 43 thematic inspections conducted, and enhanced monitoring of compliance with EU restrictive measures, especially those relating to Russia.

The administrative fines imposed in 2025 amounted to €2.3 million, contributing to a three-year total of €7.3 million, with all revenues transferred to the permanent fund of the Republic, Mr. Theocharides clarified. Beyond financial sanctions, the Commission requested corrective measures in more than 170 cases, revoked four licenses, and suspended trading in five securities on the Cyprus Stock Exchange. Two cases were referred to the Police, five to the Attorney General, and two to MOKAS. CySEC also issued dozens of warnings to the public about unlicensed online entities and strengthened campaigns to educate and protect investors from electronic fraud.

Despite a challenging economic environment influenced by external factors, Mr. Theocharides noted a 2.53% increase in the number of supervised entities over the past five years (2020-2025), which he said “is an indication that Cyprus continues to accumulate substantial advantages as an investment destination.” In 2025 alone, CySEC approved 47 new licenses: 26 in collective investments, 12 in the provision of investment services, eight in crypto-assets, and one in administrative services. By the end of the year, the total number of supervised entities reached 808, with another 61 license applications under evaluation. Funds under management in collective investment undertakings amounted to €11.4 billion, “with a significant part being invested in the Cypriot economy,” Mr. Theocharides added.

The CySEC President also highlighted the authority’s active role during the upcoming Cyprus Presidency of the EU Council. He explained that preparation for the Presidency had been a key priority in 2025, with more than 15 CySEC executives assuming responsibilities as experts in important legislative files. “The CySEC approaches the Cyprus Presidency as another opportunity to make a substantial contribution to the European dialogue on the formation of a modern, reliable and resilient framework for the capital markets of the European Union,” he said. CySEC is actively involved in the Market Infrastructure Package, the Retail Investment Strategy, and the review of the sustainability reporting framework (SFDR), while also organizing meetings of the ESMA Board of Directors and Board of Supervisors in April 2026.

Financial literacy remained a key focus for CySEC, with campaigns conducted in 44 schools across all provinces in 2025, educating more than 17,000 students. The Commission’s officials also participated in university events, social media initiatives, television broadcasts, and international campaigns, providing “valid information and practical advice to the investment community,” Mr. Theocharides said.

Technological advancement was another area of progress, with CySEC accelerating its digital transformation through investments in new information systems, data analysis tools, artificial intelligence, and cybersecurity. Mr. Theocharides also confirmed plans for “substantial strengthening of the Commission’s human resources” in 2026.

When asked about the privatization of the Cyprus Stock Exchange, Mr. Theocharides described the project as “very important” for attracting a strategic investor capable of developing the Exchange. He emphasized that while CySEC does not play an active role in selecting the investor—“which is run by the government with the CSE Board of Directors”—the Commission supports the process and evaluates the investor “as we do for any company that receives a license.” He added that a strong and stable stock exchange is essential for Cyprus as a regional financial center.

Looking ahead, Mr. Theocharides said that the combination of the upcoming EU Council Presidency, major European regulatory reforms, and ongoing digital transformation “make the next period particularly demanding.” He reaffirmed CySEC’s commitment to its mission, stating, “CySEC remains fully committed to its mission to protect investors, ensure the orderly functioning of the market and support the sustainable development of the investment sector.” He concluded by emphasizing the Commission’s dedication to transparency and accountability: “We are committed to continuing with the same responsibility and commitment in the coming years.”

By fLEXI tEAM