Cyprus Faces 63% Cost Burden For Electrical Interconnector Project

Cyprus is set to bear significant financial responsibility for the Great Sea Interconnector, a project linking Cyprus and Greece via an underwater cable, according to the Cyprus Energy Regulatory Authority (RAEK). Even without active participation in the project, Cypriot electricity consumers will shoulder 63% of the implementation costs. This decision stems from the Cross-Border Cost Allocation (CBCA) agreements between Cyprus and Greece, grounded in EU regulations.

RAEK’s President, Andreas Poulikkas, clarified this position in response to questions raised by MP Andreas Pasiourtidis. Despite the potential non-participation of Cyprus, the CBCA mandates that Cypriot consumers contribute towards the investment’s amortisation. The decision is crucial for securing €750 million in funding from the Connecting Europe Facility (CEF), with €657 million already granted. An additional €100 million in grants is still required to meet the CBCA conditions.

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Failure to secure these funds would necessitate revisiting the CBCA, potentially increasing the financial burden on Cypriot consumers. The project’s operational cost recovery remains under review by the regulatory authorities.

Inclusion in the EU’s Project of Common Interest (PCI) list necessitates Cyprus’ support, highlighting the project’s strategic importance. The investor’s dossier, submitted to regulatory authorities, includes a detailed cost-benefit analysis, business plan, and substantiated CBCA proposal, emphasising the benefits to both Cypriot and Greek consumers.

The discussion in the Cypriot Parliament, led by various MPs, underscores the project’s implications for local consumers. The regulatory framework, governed by Cyprus’ Electricity Market Regulation Law and aligned with EU directives, indicates no parliamentary approval is needed, only the consent of national regulatory authorities.

This development marks a critical juncture for Cyprus’ energy strategy, potentially influencing the island’s energy independence and integration into the broader European grid. The outcome of this project will likely have far-reaching consequences for Cypriot consumers and the nation’s energy future.

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Cyprus Crypto Users Face New Risks As MiCA Rules Take Effect

by News Editor

August 18, 2026

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.

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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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