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During a Parliamentary Finance Committee meeting, CySEC Chairman George Theocharides announced Cyprus's top-ranking status in providing cross-border investment services within the EU.
The financial services sector has witnessed a 12% growth over the past four years, particularly in Investment Companies.
Theocharides attributed this success to a decade-long rapid growth in the Investment Companies sector, drawing companies from Israel due to Cyprus's proximity and EU membership. He emphasized the development of an ecosystem with expertise in IT, technology, compliance, and legal aspects.
As Cyprus prepares for new regulations in the crypto-assets sector, Theocharides highlighted the importance of protecting investors. The MiCA regulation, set to be fully implemented by the end of 2024, will establish a comprehensive EU-wide framework for companies offering crypto services.
The CySEC president stressed efforts to enhance financial literacy, especially regarding the risks associated with cryptocurrencies. He acknowledged the sector's potential dangers while emphasizing the importance of informing and engaging the public.
The implementation of European regulations will provide increased protection for Cypriot investors in crypto-assets. Theocharides outlined the direct economic benefits for Cyprus, including the establishment of companies, employment opportunities, and alternative financing for the economy.
CySEC reported administrative fines totaling €6 million over the past three years, emphasizing the importance of compliance. Theocharides highlighted the collection of fines through settlements, ensuring immediate payment and preventing legal challenges.
Looking ahead, CySEC is gearing up for challenges, including the Digital Operational Resilience Act (DORA) and combating money laundering. The president highlighted preparations for risk prevention mechanisms to safeguard against various factors.
The budget for 2024 reveals increased revenues and spending for CySEC, reflecting the growing demands on the organization. The president mentioned the focus on staff remuneration and technological upgrades, with plans to hire 20 new staff members in 2024.
In speeches by committee members, the importance of CySEC's role in the Cypriot economy was underscored. Members expressed satisfaction with CySEC's operation and emphasized the need for effective supervision, controls, and strict sanctions to protect investors and maintain Cyprus as an attractive investment destination.
[With information sourced from CNA]
