CySEC Expands Supervisory Focus Ahead of Cyprus' EU Council Presidency

The Cyprus Securities and Exchange Commission (CySEC) is entering 2026 with an expanded supervisory agenda, following a year of intensified inspections, broader enforcement action, and closer coordination with European authorities.

Presenting CySEC's 2025 annual review in Nicosia, chairman George Theocharides said the past year had been shaped by efforts to strengthen supervisory credibility amid increasing regulatory demands, accelerating digitalisation in financial markets, and heightened geopolitical risk. The review was also framed in the context of Cyprus assuming the Presidency of the Council of the European Union in the first half of 2026.

During 2025, CySEC conducted nearly 600 on-site and off-site inspections covering Cyprus Investment Firms, fund managers, collective investment schemes, issuers, and market infrastructure providers. Inspections focused on conduct standards, capital adequacy, sustainability disclosures, data quality, and compliance with EU frameworks including MiFID II, the Digital Operational Resilience Act, and the Markets in Crypto-Assets Regulation.

The scale of supervisory activity reflects closer scrutiny of cross-border firms operating from Cyprus, as EU-level oversight intensifies ahead of the upcoming Presidency.

Enforcement remained a key component of CySEC's work. Administrative fines and settlements totalled €2.3 million during the year, bringing cumulative penalties over the past three years to €7.3 million. Regulatory actions also included corrective measures in more than 170 cases, licence suspensions and withdrawals, and trading halts for certain securities listed on the Cyprus Stock Exchange.

Several cases were referred to the Attorney General, law enforcement agencies, and MOKAS, Cyprus' financial intelligence unit. Anti-money laundering oversight featured prominently, with CySEC carrying out 43 thematic AML inspections and increasing monitoring of compliance with EU restrictive measures, particularly those related to Russia.

CySEC also expanded its supervisory focus to emerging areas of market behaviour. The regulator highlighted the growing use of social media personalities to promote investment products as a risk area for retail investors, especially in cross-border online markets.

Licensing activity continued despite the tighter supervisory approach. CySEC approved 47 new licences in 2025, bringing the total number of supervised entities to 808. Assets under management in collective investment schemes reached €11.4 billion, with a significant portion invested within Cyprus.

Technology investment formed a central part of CySEC's oversight strategy. The regulator expanded its use of IT systems, data analytics, artificial intelligence tools, and cybersecurity capabilities during 2025, with further upgrades and staffing planned for 2026.

Throughout the year, CySEC participated in EU-level discussions on major legislative initiatives, including the Retail Investment Strategy, the Market Infrastructure Package, and proposed revisions to the Sustainable Finance Disclosure Regulation. Cyprus is scheduled to host meetings of the European Securities and Markets Authority's Management Board and Board of Supervisors in April 2026.

Investor protection remained a parallel focus. CySEC issued multiple public warnings about unauthorised online firms and continued financial education initiatives across schools, universities, and digital platforms, with updated materials addressing online trading and crypto-asset risks.