Nicosia, Cyprus. Cyprus Securities and Exchange Commission chairman Giorgos Theocharides said there is “intense interest” in cryptocurrency business in Cyprus, with eight companies currently licensed and 21 more entities having applied.
Committee briefing and licensing figures
Theocharides made the remarks to journalists after a session of the House finance committee that reviewed the SEC’s proposed budget for fiscal year 2026. He said Cypriot nationals are increasingly engaged in the cryptocurrency business.
Regulated entities and enforcement activity
Theocharides told members of parliament that, as of the end of 2025, the number of SEC-regulated entities stood at 808. Over the past three years, the SEC has imposed €7.3 million in administrative fines on investment firms for various violations.
Regulatory framework for cryptocurrency
In Cyprus, cryptocurrency is regulated primarily via the SEC under AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism) laws. Cryptocurrency is not legal tender, and general investment rules apply.
Circular C417 and requirements for investment firms
Theocharides referred to Circular C417, adopted in November 2020, which aims to ensure that Cyprus Investment Firms adequately cover their investments in cryptocurrencies and manage risks associated with cryptocurrency trading.
The circular sets out three requirements for Cyprus Investment Firms to operate in the sector. First, firms must receive SEC authorisation to trade in cryptocurrencies. Second, firms must have sufficient capital to cover their cryptocurrency investments by determining a capital adequacy ratio.
Third, firms must manage risks linked to cryptocurrency investments, including revisiting risk management procedures periodically and ensuring all risks are duly considered. The SEC also tasked firms with mitigating trading risks in cryptocurrency, including operational, cybersecurity and reputational risks.
What do you think the rise in crypto licensing applications could mean for financial regulation in Cyprus?