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Cyprus Aims to Strengthen Wage Adequacy Amid Rising Living Costs

The Ministry of Labour in Cyprus has set its sights on enhancing wage adequacy to help citizens navigate the pressures of rising living costs. Speaking on the issue, Labour Minister Yiannis Panayiotou emphasised that the government is actively working to ensure that wages across the country remain sufficient in the face of escalating inflation and the broader cost-of-living crisis. This commitment comes at a time when many Cypriots are feeling the financial strain caused by global economic turbulence and domestic price increases.

In a recent statement, Panayiotou outlined the government’s strategy, which focuses on safeguarding and improving the standard of living for workers, while also addressing the growing gap between wages and the cost of essential goods and services. The Ministry’s approach involves monitoring economic conditions closely and collaborating with key stakeholders, including trade unions and employer associations, to strike a balance between wage growth and economic sustainability.

Cyprus, like many other European nations, is grappling with inflationary pressures driven by factors such as supply chain disruptions, increased energy costs, and the aftermath of the COVID-19 pandemic. These factors have led to significant price hikes in everything from groceries to housing, creating a financial squeeze for households across the island. For low- and middle-income families in particular, the rising cost of living has outpaced wage increases, leaving many struggling to make ends meet.

The government’s efforts to strengthen wage adequacy also align with broader European Union goals aimed at addressing wage inequality and ensuring fair pay for all workers. The implementation of a national minimum wage in Cyprus, introduced in 2023, was a key step in this direction. However, the current economic climate has prompted further discussions about whether these measures are enough to support the workforce during such challenging times.

While wage increases are necessary to maintain purchasing power, they must also be balanced against the risk of fuelling inflation further. Panayiotou acknowledged this delicate balancing act, stating that the government’s policies would be designed to promote sustainable wage growth that does not undermine economic stability or lead to job losses. The focus will be on targeted wage increases that benefit those most affected by rising costs, while simultaneously supporting overall economic growth.

Looking ahead, the Ministry of Labour is also considering additional measures, including potential revisions to social benefits and tax policies, to further alleviate the financial burden on Cypriot citizens. As inflation remains a key concern, the government’s proactive stance on wage adequacy will be crucial in protecting workers’ livelihoods and maintaining social cohesion in the face of ongoing economic challenges.

Cyprus Crypto Users Face New Risks As MiCA Rules Take Effect

Why Investors Need To Check The Company Behind Their Crypto Platform

Crypto users in Cyprus are being urged to verify exactly which company holds their assets after the EU’s Markets in Crypto-Assets Regulation (MiCA) transition period ended on July 1, 2026.

MiCA rules for crypto-asset service providers have applied since December 2024, but Cyprus allowed companies operating under its previous national framework to continue temporarily. CySEC required providers wishing to remain in the market to apply by February 27, 2026.

The end of the transition means that appearing on an old national register is no longer enough. Investors must check the specific legal entity providing the service and the activities it is authorised to perform.

Two Regulatory Routes

CySEC maintains separate registers for providers authorised under Article 63 and companies using the Article 60 notification route.

The lists should not simply be treated as a count of licensed crypto exchanges. Providers have different regulatory statuses and may be authorised for different services, including custody, transfers, exchanges or operating trading platforms.

Companies authorised elsewhere in the EU can also serve Cypriot customers through MiCA passporting. Investors should therefore check the wider ESMA register.

Familiar Brands Can Still Be Used In Scams

MiCA authorisation applies to a specific legal entity, not automatically to every website, subsidiary or service using the same brand. Fraudsters can copy a legitimate company’s name, logo and licence number while changing its website or payment details.

The regulatory transition creates another opportunity for scammers. They can imitate legitimate notices about account closures or transfers and claim that customers must urgently move their assets to a new “regulated” platform.

In its July announcement, CySEC warned that customers using unauthorised providers do not receive MiCA protections and advised investors to verify providers through ESMA.

A Wider European Shake-Up

The changes affect the broader European crypto market. VASPnet estimated that more than 1,700 unlicensed crypto companies could face closure, relocation or restructuring after the transition period.

ESMA’s register contained 323 authorised providers at the end of July, while TRM Labs identified 1,343 operating providers in the European Economic Area on July 1, including 281 with MiCA authorisation. The different figures reflect different methodologies, but point to a substantial number of providers operating without the new authorisation.

ESMA instructed unauthorised companies to stop accepting new EU customers, opening accounts and marketing their services, while allowing limited activity needed for an orderly withdrawal.

What Investors Should Check

MiCA introduces common requirements for areas such as governance, disclosures and safeguarding client assets, but it does not make crypto investments risk-free.

For Cyprus users, the key questions are which legal entity provides the service, what it is authorised to do and whether the website or contact details are genuine.

Requests to transfer assets urgently, pay recovery fees, reveal private keys or install remote-access software should be treated as red flags. MiCA may bring greater clarity to the market, but the transition has also created a new opportunity for criminals to exploit a very real regulatory change.

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