Nicosia: The forex market, akin to any investment-related activity, necessitates a robust focus on investor protection, accurate information, and the enhancement of financial literacy, stated Finance Minister Makis Keravnos at the CY Economy Forex Conference ’26 held in Nicosia. The conference shed light on the forex sector’s contribution to the Cypriot economy while underscoring the need for stringent oversight.
According to Cyprus News Agency, in his address delivered by Avgi Chrysostomou Lapathiotis, Director of Financial Services at the Ministry of Finance, Minister Keravnos emphasized that within a well-regulated framework, forex companies can offer employment, specialization, and expertise, thereby strengthening Cyprus’ position as a regional business and financial hub in the digital finance era.
Additionally, Minister Keravnos highlighted that during the first half of 2026, under the Cyprus EU Presidency, the European Union will prioritize initiatives aimed at enhancing the efficiency, transparency, and competitiveness of European capital markets. These efforts are deemed essential for achieving financial stability, market integrity, and growth.
He further elaborated on the Savings and Investments Union (SIU), which seeks to enhance the European financial system’s ability to channel savings into productive investments, expand citizens’ access to capital markets, and provide businesses with diverse financing options. Initiatives are also being advanced to simplify regulations while maintaining a high level of investor protection, thereby improving access to capital for small and medium-sized enterprises and start-ups within the Single Market.
Keravnos also mentioned significant European initiatives impacting the financial sector and citizens’ daily lives, such as the digital euro package, the modernized payments market, and “Open Finance” approaches that facilitate access and sharing of financial data.
George Theocharides, Chairman of the Cyprus Securities and Exchange Commission (CYSEC), reported that in 2025, approximately 600 on-site and off-site thematic inspections were conducted at Cyprus Investment Firms (CIFs) focusing on organizational requirements and professional conduct issues, as defined by MiFID II. Administrative penalties totaling about £2.3 million were imposed, with £1.3 million directed at CIFs.
Theocharides added that over the past three years, administrative penalties amounting to roughly £7.3 million have been levied, with £5.3 million imposed on CIFs for legislative violations. All funds are deposited into the Permanent Fund of the Republic of Cyprus.
He noted that CYSEC currently supervises 808 entities, including 252 Cyprus Investment Firms, with total assets valued at £4.5 billion by the end of the third quarter of 2025. Among these, 162 firms primarily engage in Contracts for Difference (CFDs), which are identified as complex, high-risk, and leveraged investment products. Meanwhile, 89 companies provide traditional financial products, such as stocks, bonds, or Exchange Traded Funds (ETFs), and one company operates a Multilateral Trading Facility. An additional 29 applications for new CIF establishments are under review.
Philokypros Roussounides, Secretary General of the Cyprus Chamber of Commerce and Industry, highlighted Cyprus as a pivotal center for Forex company establishment in Europe, attributing this to the regulatory framework, competitive tax regime, and access to the European market. He emphasized that while forex trading is high-risk, it requires proper information and a responsible approach.
Roussounides also remarked on the forex sector’s contribution to the Cypriot economy, noting its role in transforming Cyprus into a regional financial center, creating attractive employment opportunities, fostering trade development, encouraging new investments, expanding expertise in high-tech systems, boosting state tax revenues, and significantly contributing to economic growth.
First Vice President of the Cyprus Employers and Industrialists Federation (OEB), Demetris Vakis, discussed the prospects and responsibilities of the forex sector in Cyprus, emphasizing that sustainable development requires effective supervision, clear rules, and comprehensive information. OEB, as the voice of organized business in Cyprus, approaches forex with institutional seriousness and clear principles, recognizing its integral role in the rapidly evolving globalized financial system.