Sector size, supervision and investor protection highlighted
The Cyprus forex market took centre stage at the “Cy Economy FOREX Conference ’26”, held in Nicosia, with discussions focusing on the size and dynamics of the sector, its regulatory framework and its contribution to the island’s economy.
Addressing the conference, Finance Minister Makis Keravnos stressed that the government’s goal is to build a financial sector that strengthens the real economy, attracts quality investment, creates opportunities for businesses and citizens, and operates under rules that reinforce trust.
Particular emphasis was placed on the supervision of investment services in Cyprus and the rapid technological developments transforming how such services are delivered.
Investor protection and financial literacy
In a written address delivered by the Director of Financial Services at the Ministry of Finance, Avgi Chrysostomou Lapathioti, the minister underlined the importance of a strong regulatory framework and investor protection.
He noted that the Ministry of Finance, in cooperation with competent supervisory authorities, plays a decisive role in shaping policies that safeguard the financial system against risks while ensuring the proper and transparent functioning of markets.
Within this context, the Cyprus forex market, like any activity linked to investment services, requires strong emphasis on investor protection, proper information and the cultivation of financial literacy. Public awareness of product characteristics, associated risks and investor rights is considered an integral part of a healthy market.
The minister also highlighted efforts to tackle financial illiteracy, noting that within a robust supervisory framework, forex companies create jobs, expertise and know-how, strengthening Cyprus’ position as a regional business and financial hub in the era of digital financial services.
808 supervised entities, €4.5 billion in assets
Speaking about the supervisory role and the scale of the investment services ecosystem, George Theocharides, Chairman of the Cyprus Securities and Exchange Commission, said the Commission currently supervises 808 entities.
Of these, 252 are Cyprus Investment Firms (CIFs), with total assets amounting to €4.5 billion at the end of the third quarter of 2025. Among the 252 CIFs, 162 are fintech firms, using technology to promote and provide services to investors, including those operating in the forex segment.
Theocharides noted that Cyprus ranks first in Europe in terms of cross-border provision of investment services relative to its size, underlining the country’s leading role in the sector. At the same time, he stressed that the Commission remains committed to investor protection and the development of a sound market.
There are currently 29 applications under review for the establishment of new Cyprus Investment Firms.
Inspections, fines and licence withdrawals
During 2025, the Commission carried out approximately 600 inspections of CIFs and imposed administrative fines totalling €2.3 million, of which €1.3 million concerned CIFs. Over the past three years, total administrative fines reached €7.3 million, with €5.3 million imposed on CIFs for legislative breaches. The amounts are deposited into the Republic’s consolidated fund.
In 2025, four CIF licences were suspended or withdrawn. The Commission also referred two cases to the Police, five to the Attorney General for investigation into potential criminal offences, and transmitted information on two cases to the anti-money laundering authority.
Digital resilience under DORA
Theocharides also referred to compliance with the DORA regulation, a unified European framework that came into force in early 2025 to enhance the digital resilience of the financial sector.
DORA applies to a broad range of financial institutions, including banks, insurance companies and investment firms, ensuring they have adequate mechanisms to prevent, manage and respond to digital and technological risks, thereby strengthening the stability and reliability of the financial system.
Contribution to the Cyprus economy
In his remarks, Philokypros Rousounides, Secretary General of the Cyprus Chamber of Commerce and Industry, said Cyprus has evolved into one of the most significant centres for forex company establishment in Europe. He stressed that the sector supports the country’s strategic goal of becoming a regional financial centre.
The sector, he said, creates attractive jobs for Cypriots, boosts trade, fosters new investment, expands high-tech expertise and strengthens state revenues, contributing substantially to economic growth.
Dimitris Vakis, First Vice President of the Cyprus Employers and Industrialists Federation, added that forex companies offer prospects for attracting quality business activities, employing specialised staff and keeping Cyprus on the map of international financial centres.
Legal proposals for stronger oversight
Michalis Vorkas, President of the Cyprus Bar Association, presented proposals aimed at attracting quality investment and addressing structural issues affecting the economy.
Among the proposals under consideration is an amendment to the 2012 law regulating administrative service providers, so that services related to attracting or implementing investments would be classified as supervised administrative services.
“It is inconceivable for so-called business consultants to operate without conducting due diligence measures and without being subject to supervision,” Vorkas said, reiterating the Association’s readiness to support the state in its efforts to attract quality investment.
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