The Cyprus Securities and Exchange Commission (CySEC) carried out approximately 600 on-site and off-site inspections of Cyprus Investment Firms (CIFs) in 2025, alongside extensive supervisory reviews of asset managers, collective investment entities, issuers, and market infrastructures.
The update was presented today by Dr. George Theocharides, Chairman of CySEC, during a press conference outlining the regulator’s supervisory activity over the past year and its strategic priorities going forward.
Supervisory Focus Areas
According to CySEC, supervisory efforts in 2025 concentrated on a wide range of regulatory and operational risks, including:
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Professional conduct and investor protection
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Sustainability and ESG-related risks
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Data quality and reporting accuracy
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Capital adequacy and financial resilience
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Compliance with MiFID II, DORA, and MiCA
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Emerging risks linked to the promotion of investment products by online influencers, commonly referred to as finfluencers
These areas reflect both evolving EU regulatory requirements and the increasing complexity of the digital investment landscape.
Enforcement Actions and Sanctions
As a result of its supervisory and enforcement activity, CySEC imposed administrative fines and settlements totalling approximately €2.3 million during 2025. This brings the cumulative total of fines over the past three years to €7.3 million.
In addition to monetary penalties, CySEC reported that:
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Corrective actions were requested in more than 170 cases
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Licences were suspended or revoked where serious breaches were identified
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Trading in certain securities on the Cyprus Stock Exchange was halted
Cases were also referred to the Attorney General, MOKAS (the Unit for Combating Money Laundering), and the police where potential criminal conduct was identified.
CySEC further noted its active involvement in preparations for the new European Anti-Money Laundering Authority (AMLA) and in implementing Cyprus’s updated national sanctions framework through the National Sanctions Implementation Unit.
Investor Protection and Market Growth
Alongside enforcement, CySEC continued to issue warnings to the public, publishing dozens of alerts related to unauthorised online investment entities. These efforts were supported by enhanced awareness campaigns aimed at protecting investors from digital fraud.
Despite a challenging economic environment, the regulator approved 47 new licences in 2025, bringing the total number of supervised entities to 808.
Assets under management in collective investment schemes rose to €11.4 billion, with CySEC noting that a significant share of these assets was invested in the Cypriot economy.
Digital Transformation and Financial Literacy
CySEC also highlighted progress in its digital transformation strategy. During 2025, the Commission invested in new IT systems, data analytics tools, artificial intelligence solutions, and cybersecurity infrastructure, with a further strengthening of human resources planned for 2026.
Financial education remained a key priority. CySEC continued to promote financial literacy initiatives through schools, universities, digital platforms, and international collaborations, while developing new educational materials to help citizens navigate the increasingly digital financial environment safely.