CySEC’s Chair, Dr. George Theocharides, has opened 2026 with a warning that Cyprus’ capital market is entering a stricter supervisory phase, as the new EU Anti‑Money Laundering Authority (AMLA), MiCA, DORA and revisions to MiFID II/MiFIR and AIFMD II reshape the regulatory landscape while local market activity continue to grow.
In a new circular, Dr. Theocharides informed all supervised entities that AMLA has launched a public consultation on draft Implementing Technical Standards.
By the second quarter of 2025, the commission supervised 319 Collective Investment Management Companies and Collective Investment Undertakings with total assets under management of €10.6 billion.
CySEC Chair Urges Response to AMLA Consultation
"Despite the decrease in the number of management companies and collective investment undertakings, the total volume under management is increasing, which demonstrates that the sector is raising funds in a more stable and structured manner."
The consultation applies broadly to most regulated firms in Cyprus, including investment firms, administrative service providers, fund managers and investment funds (including smaller and self‑managed ones), as well as crypto‑asset service providers and crowdfunding platforms.
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Dr. Theocharides stressed that AMLA has already started to reshape the supervisory environment. As of 1 July last year, AMLA assumed a coordinating and supporting role for national authorities on AML/CFT matters and will move to direct supervision of high‑risk entities from 2028, with powers to impose sanctions and set common European standards.
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The Chair highlighted that new rules for investment funds will strengthen cash and risk management, especially during times of market stress. These changes aim to make funds more resilient and protect investors when markets become volatile.
MiFID II/MiFIR and Investment Services Tightening
The statement also places AML changes in the wider context of EU capital markets reforms. After several years of intense legislative activity, the EU has moved from drafting rules to implementing and evaluating them in 2025 and 2026.
Against this backdrop, Dr Theocharides noted that Cyprus’ investment services sector continued to reorganise and grow in 2025, with 253 CIFs supervised by November and about 30 additional applications under review.
“In an era where technological risks are as serious as financial ones, effective implementation of DORA is a key indicator of maturity."
MiCA, DORA and Early Licensing of Crypto Providers
In his overview, Dr Theocharides highlighted the full implementation of the Markets in Crypto‑Assets Regulation (MiCA) in 2025 as particularly important, as it introduced uniform rules for crypto‑asset services at EU level for the first time.
"In general, the combined implementation of the new European rules, the enhancement of transparency and investor protection, in combination with the enhanced supervisory role of the CySEC, create a stable and safe environment. In this context, the Cypriot capital market has every reason to develop further in 2026, strengthening the economy."
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Linked to this shift is DORA, the Digital Operational Resilience Act, which introduced harmonised requirements for the digital resilience of financial institutions in 2025
Beyond regulation , the CySEC chair draws attention to structural change at the heart of the domestic market: the planned privatization of the Cyprus Stock Exchange. The relevant bill is before the House of Representatives for consultation and a vote, with the goal of selecting a strategic investor to take over the CSE’s operation.
