NICOSIA, Dec. 2 (Xinhua) -- The Cyprus Securities and Exchange Commission (CySEC) announced on Monday that Cyprus is set to officially regulate cryptocurrency operations as of Jan.1, 2025, signalling a transformative shift in its financial sector.
During the presentation of CySEC's 2023 annual report to President Nikos Christodoulides, CySEC President George Theocharides emphasized the nation's preparedness for this pivotal shift. He also revealed that several prominent cryptocurrency companies have already shown interest in setting up headquarters on the Mediterranean island.
"CySEC is well-prepared to face this challenge. We've been working on this for years," Theocharides stated, underscoring the regulator's readiness to integrate cryptocurrencies into the broader financial system.
The new regulatory framework is designed to comply with the European Union's standards, offering unregulated crypto firms operating in Cyprus the opportunity to apply for official CySEC assessment.
CySEC, which currently oversees over 300 entities, including banks, investment funds, and insurance companies, manages assets totaling approximately 10 billion euros (10.5 billion U.S. dollars), nearly one-third of Cyprus's annual GDP. Notably, 2.6 billion euros of this is directly invested in the Cypriot economy.
"This is an alternative funding source that the Cyprus economy needs," Theocharides explained.
President Nikos Christodoulides praised CySEC's proactive approach and announced plans to bolster the regulator's powers to address emerging financial challenges more effectively.
Strengthening CySEC's authority has been a priority since the 2013 financial crisis, which forced Cyprus to seek a bailout from the Eurogroup and the International Monetary Fund, the President noted. ■