Opens in a new tab

Breaking news

CySEC And Central Bank: Trust Will Define The Future Of Payments

Trust, effective supervision and responsible innovation will define the future of payments, senior officials from the Cyprus Securities and Exchange Commission (CySEC) and the Central Bank of Cyprus (CBC) said during a conference on cryptocurrencies and digital assets in Limassol on Tuesday.

Crypto Moves Into Mainstream Finance

The conference brought together policymakers and market participants to discuss the rapid evolution of cryptocurrencies, digital assets and the broader financial ecosystem. Both speakers argued that crypto has moved beyond the fringes of finance and is becoming increasingly integrated into traditional markets.

CySEC Chairman George Theocharides said digital assets are now interacting with regulated financial institutions, investment firms and institutional investors, describing the shift as a structural transformation rather than another market cycle.

MiCA Reshapes Europe’s Crypto Framework

Theocharides described the EU’s Markets in Crypto-Assets Regulation (MiCA) as a milestone for the industry, saying it establishes, for the first time, a harmonised regulatory framework for crypto-assets and related services across the European Union.

According to him, the framework provides greater legal certainty, reduces regulatory fragmentation between member states and strengthens investor protection while allowing innovation to develop within a supervised environment.

He also stressed that regulation should remain technology-neutral, focusing on risks and market conduct rather than the underlying technology.

Cyprus Looks To Bridge Traditional And Digital Finance

Theocharides said Cyprus is well positioned to connect traditional financial services with emerging digital finance, pointing to the country’s established regulatory framework for investment services and capital markets alongside its growing fintech ecosystem.

“The role of the Cyprus Securities and Exchange Commission is to ensure that this evolution takes place within a framework that protects investor confidence, promotes market integrity and supports the sustainable development of the financial sector,” he said.

Stablecoins And Digital Money Move Into Focus

Speaking at the same event, CBC Executive Board member George Karatzias said digital money is no longer a theoretical concept but an increasingly important part of the financial system.

He argued that innovation must be accompanied by strong oversight, adding that Europe is working to build a sovereign digital payments ecosystem centred on central bank money while allowing public and private forms of money to coexist. Karatzias said the rapid growth of stablecoins also increases the need for robust regulation.

“Scale brings responsibility, and responsibility requires supervision,” he said, adding that MiCA provides a comprehensive framework covering licensing, transparency, market integrity and consumer protection.

He also noted that euro-denominated stablecoins still account for only a small share of the global market, raising broader questions about Europe’s monetary sovereignty and dependence on foreign-currency digital assets.

The Digital Euro Moves Forward

Karatzias said the European Central Bank is continuing preparations for the digital euro, which is intended to complement commercial bank money while strengthening Europe’s payment infrastructure and reducing reliance on non-European providers.

He said the ECB plans to launch a 12-month pilot programme in the second half of 2027 to test the digital euro in real-world payment scenarios, including point-of-sale transactions and person-to-person transfers. Further details on the participation of Cypriot organisations are expected to be announced in the coming months.

For both regulators, the central message was consistent: as digital finance becomes more deeply embedded in the financial system, innovation must be supported by strong regulation, investor confidence and public trust.

Cyprus Company Registration: Two To Four Days, Unless Security Checks Intervene

Cyprus aims to register companies within two to four working days when applicants submit complete documentation. However, regulatory approvals, sanctions checks, foreign ownership and national security considerations can extend the process or prevent registration.

Energy, Commerce and Industry Minister Michael Damianou outlined the timeframe in a written response to MP Efrem Christou, who asked about company formation procedures and the checks required before approval.

Fast Registration Depends On Complete Documentation

Damianou said authorities seek to process complete applications within two to four working days, regardless of a company’s structural complexity. The timeframe also depends on whether applicants pay an additional fee for expedited processing.

According to the official incorporation requirements, the standard registration fee is €165, rising to €235 for companies without share capital. Expedited processing costs an additional €100.

Applicants must submit an approved company name, a memorandum and articles of association, and forms HE1, HE2 and HE3. Public companies must also provide form HE5.

Regulated Businesses Require Additional Approval

Companies operating in certain sectors must obtain prior clearance from the relevant authorities or professional bodies. These include medical and dental businesses, law firms, insurance and reinsurance companies, and firms supervised by the Cyprus Securities and Exchange Commission.

The Central Bank of Cyprus must also approve company names associated with payment institutions, electronic money and foreign exchange services. Additional restrictions apply to educational institutions using terms such as “university” or “college”, casino operators, broadcasters and wine producers.

Non-profit organisations seeking to register without “Limited” or “Ltd” in their names also require ministerial authorisation.

Sanctions And Foreign Ownership Trigger Extra Checks

Applications involving shareholders, directors or company secretaries subject to EU, UN or US sanctions receive additional scrutiny. Registration can proceed only if the competent sanctions authority does not prohibit it. Damianou noted that US sanctions are considered indirectly but have not been incorporated into Cyprus legislation in the same way as EU and UN restrictions.

Applications involving Turkish interests are also subject to additional review. Under procedures introduced around 20 years ago, the registrar must consult national security services before proceeding with registrations involving Turkish interests or businesses that could threaten the Republic’s security.

Damianou distinguished these cases from applications submitted by Turkish Cypriots, saying there is “no substantial difference” in how their registration documents are examined. Applications may nevertheless be refused if classified information raises concerns about national interests or national security.

Public Servants Face Separate Restrictions

Under Article 65 of the public service law, government employees cannot act as directors, company secretaries or shareholders in private or public companies without prior special permission from the finance minister.

Proposed Law Would Expand Registrar’s Powers

The government is also seeking to strengthen the Registrar of Companies’ authority to address potential security risks. An amendment to the companies law, submitted to Parliament on September 17, would allow the registrar to reject applications, refuse company filings or remove existing businesses from the register on grounds including national security, public order, public interest and the protection of state sovereignty.

The proposal, approved by the Council of Ministers on August 6, remains before the House commerce committee. It would allow authorities to withhold detailed justifications where disclosure could reveal sensitive information, while informing affected companies of the general grounds for decisions.

The bill follows parliamentary discussions about companies controlled by non-EU nationals, particularly those with Turkish ultimate beneficial owners, and possible implications for property ownership through foreign-controlled businesses. Further details are available in the proposed amendment and earlier parliamentary reporting.

Balancing Investment And Oversight

Cyprus is seeking to maintain an efficient company registration process while strengthening checks on ownership, sanctions compliance and potential security risks.

The two-to-four-day target supports the country’s appeal to entrepreneurs and international investors, but the actual timeline depends on the nature of the business, the documentation submitted and any additional regulatory or security reviews required.

eCredo
Aretilaw firm
The Future Forbes Realty Global Properties
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter