CySEC Steps Up Enforcement Ahead of Cyprus EU Council Presidency in 2026
Why CySEC Is Raising Its Supervisory Profile
The Cyprus Securities and platform Commission is heading into 2026 with an expanded supervisory agenda, following a year marked by heavier inspections, wider enforcement action, and closer coordination with European authorities. The effort comes as Cyprus prepares to assume the Presidency of the Council of the European Union in the first half of next year.
Presenting CySEC’s 2025 review in Nicosia, chairman George Theocharides described the past year as one focused on reinforcing supervisory credibility at a time of growing regulatory demands, digitalisation across markets, and heightened geopolitical risk. The review was framed against Cyprus’ forthcoming role at the centre of EU-level policy coordination.
During 2025, CySEC carried out close to 600 on-site and off-site inspections across Cyprus Investment Firms, fund managers, collective investment schemes, issuers, and market infrastructure providers. Key areas under review included conduct standards, capital requirements, sustainability disclosures, data quality, and adherence to EU frameworks such as MiFID II, the Digital Operational Resilience Act, and the .
Investor Takeaway
Enforcement Activity Broadens Beyond Fines
Enforcement remained a central pillar of CySEC’s work. Administrative fines and settlements during 2025 totalled €2.3 million, lifting cumulative penalties over the past three years to €7.3 million. Regulatory action went well beyond financial sanctions.
The watchdog ordered corrective measures in more than 170 cases, suspended or withdrew licences, and halted trading in certain securities listed on the Cyprus Stock platform. Several matters were escalated to the Attorney General, law enforcement bodies, and MOKAS, Cyprus’ financial intelligence unit.
featured prominently. CySEC conducted 43 thematic AML inspections and increased monitoring of compliance with EU restrictive measures, with particular attention on sanctions linked to Russia. These checks were framed as part of a wider effort to tighten controls around financial crime and sanctions enforcement.
Influencers, AML, and EU Coordination Take Priority
Alongside traditional supervision, CySEC expanded its focus into newer areas of market behaviour. One area under closer review was the use of social media personalities to promote investment products, which the regulator flagged as a growing risk channel for retail investors, especially in cross-border online markets.
CySEC’s AML work is also tied to upcoming EU reforms. The regulator confirmed its involvement in preparations for the new Anti-Money Laundering Authority, which is expected to centralise supervision of higher-risk institutions across the bloc. At national level, CySEC is contributing to the rollout of Cyprus’ updated sanctions framework through the National Sanctions Implementation Unit.
Licensing activity continued despite the tighter supervisory stance. CySEC approved 47 new licences during the year, lifting the total number of supervised entities to 808. schemes reached €11.4 billion, with the regulator noting that a large portion of those assets is invested within Cyprus.
Investor Takeaway
How the EU Presidency Shapes the 2026 Agenda
Technology investment has become a core element of CySEC’s oversight approach. During 2025, the regulator expanded its use of new IT systems, data analytics, artificial intelligence tools, and cybersecurity capabilities. Additional hiring and technical upgrades are planned for 2026 as supervisory demands increase.
The timing aligns closely with Cyprus’ upcoming EU Council Presidency. Throughout 2025, CySEC officials participated in discussions on major legislative files, including the Retail Investment Strategy, the Market Infrastructure Package, and planned revisions to the .
Cyprus is scheduled to host meetings of the Management Board and Board of Supervisors in April 2026, placing CySEC at the centre of EU supervisory coordination during the Presidency period. For a jurisdiction long associated with cross-border retail trading, the focus reflects an effort to underline alignment with EU supervisory priorities.
Investor Protection and What Comes Next
Investor protection remained a parallel theme throughout 2025. CySEC issued multiple public warnings about unauthorised online firms and expanded awareness campaigns tied to digital fraud risks. Financial education programmes continued across schools, universities, and online channels, with updated materials addressing online trading and crypto-asset exposure.
