Limassol, Cyprus. Senior officials from the Cyprus Securities and Exchange Commission and the Central Bank of Cyprus said on Tuesday that the future of payments will depend on trust, effective supervision and responsible innovation. Speaking at a conference in Limassol, they highlighted the growing integration of cryptocurrencies and digital assets into the financial system and the importance of regulation.
Growing integration of digital assets
CySEC chairman George Theocharides said crypto assets are no longer operating on the margins of financial markets.
“They are becoming increasingly integrated into the broader financial ecosystem, interacting with traditional financial instruments, regulated intermediaries and institutional investors,” he said.
Theocharides said this is not a temporary trend but a structural transformation in the way markets are organised, assets are created and issued, and investors gain exposure to financial products.
“Digital assets are increasingly becoming integrated into traditional channels of financial intermediation rather than operating outside them,” he said.
Supervisory challenges and regulation
Theocharides said these developments have created significant supervisory challenges.
“From a regulatory perspective, the objective is not to replace existing systems but to ensure that new technologies operate according to the same fundamental principles of financial regulation,” he said.
MiCA framework
Theocharides described the European Union’s Markets in Crypto-Assets Regulation as a landmark in international financial regulation because it establishes, for the first time, a comprehensive and harmonised framework governing the issuance of crypto assets and the provision of related services across a major economic area.
He said MiCA is already providing greater legal certainty, reducing regulatory fragmentation between EU member states and creating a stronger foundation for supervisory convergence.
