Cyprus Business Now: CySEC, banks, real estate, shipping, airports, tech

The Cyprus Securities and Exchange Commission (CySEC) has warned regulated financial firms to strengthen their anti-money laundering controls following the end of the European Union’s transition period under the Markets in Crypto-Assets Regulation (MiCA) on July 1, 2026. In a circular issued on this week, the regulator drew attention to new guidance published by the EU Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), which outlines the money laundering and terrorist financing risks that could emerge as the crypto-asset market adjusts to the new regulatory framework. CySEC explained that, following the end of the transition period, firms wishing to continue providing crypto-asset services within the European Union must now be authorised as MiCA-compliant Crypto-Asset Service Providers (CASPs). The regulator said the end of the transition period is expected to trigger significant structural changes across the EU crypto-asset sector, as unauthorised virtual asset service providers leave the market and their customers either close their accounts or transfer to authorised providers. The Cyprus Securities and Exchange Commission (CySEC) on Thurssday highlighted its contribution to Cyprus’ Presidency of the Council of the European Union, saying it played an active role in negotiations on major legislative initiatives that will shape the future of Europe’s financial sector. With Cyprus’ six-month Presidency concluding on June 30, 2026, the regulator said its officials participated throughout the period in Council working groups, providing technical expertise and supporting negotiations on key European Union legislative proposals. According to CySEC, staff from its policy, ongoing and thematic supervision, authorisations and legal departments took part in the technical work of the Council during the Presidency. The regulator said its contribution focused on policy initiatives aimed at strengthening European capital markets and financial supervision. After years in which crypto was often discussed through the lens of speculation, volatility and disruption, the conversation is now moving towards something more serious, regulation, institutional confidence, real use cases and the ability of companies to prove that they can be trusted. That was the thread running through the Digital Assets and the Future of Finance Summit 2026, presented by ECOMMBX this week at City of Dreams Mediterranean in Limassol, where regulators, bankers, fintech executives, legal experts and technology providers discussed how digital assets are moving from the edges of finance into a more regulated and practical environment. The summit’s wider agenda reflected the speed at which the sector is changing, covering everything from MiCA, DORA, the Digital Euro and CBDCs to tokenised real-world assets, stablecoins, institutional portfolios, digital payments and the use of blockchain infrastructure in mainstream finance. The tone was set by Cyprus Securities and Exchange Commission (CySEC) chairman George Theocharides, who said financial markets are going through “a period of structural transformation”, with digitalisation and innovation changing the way they operate. Digital assets, he noted, are becoming increasingly integrated into the financial system, while institutional participation is accelerating through regulated products such as ETFs and ETPs. Renewed tensions in the Middle East have added another layer of uncertainty for Cyprus, with economist Tassos Yiasemides warning that a prolonged crisis could slow the island’s economic growth. Speaking to the Cyprus News Agency (CNA), Yiasemides said the latest flare-up in US-Iran relations has brought geopolitical risk back to the centre of the global economic outlook, at a time when markets were only beginning to stabilise after years of trade tensions and inflationary pressure. He referred to the International Monetary Fund’s (IMF) latest forecasts, released on Wednesday, which “limit the expected growth of the global economy to 3 per cent for 2026, emphasising that geopolitical conflicts now constitute one of the greatest risks to international economic stability.” This renewed instability, according to Yiasemides, is already creating risks through energy, transport and international trade. “At a time when markets were trying to regain stability after the trade tensions and inflationary pressures of recent years, geopolitical instability in the Middle East is creating new risks, mainly through energy, transport and international trade,” he said. At the same time, he noted that the IMF has revised its global inflation forecasts upwards, mainly because of higher energy costs and uncertainty in oil markets. Cyprus’ property market is evolving beyond a single national narrative, with regional differences, affordability pressures and changing buyer priorities increasingly defining its direction. At the same time, policymakers and industry leaders are grappling with how to sustain growth while ensuring housing remains accessible, planning becomes more efficient and development keeps pace with the country’s long-term needs. In an exclusive interview with the Sunday Mail, Landbank Group chief executive officer Andreas Christophorides examined the forces reshaping the market, from shifting demand and rising construction costs to foreign investment, sustainability and the structural reforms he believes are needed to secure the sector’s future. Passenger traffic at Cyprus’ two airports fell by 4.11 per cent in June, a smaller decline than the sharper losses recorded earlier in the year, according to Hermes Airports. A total of 1.38 million passengers travelled through Larnaca and Paphos airports in June 2026, compared with 1.44 million in the same month last year. The June figures point to a more contained slowdown after a difficult spring for the aviation and tourism sectors. Traffic had fallen by 16.1 per cent in April and 15.3 per cent in March, while May recorded a decline of 4.13 per cent. However, the performance continued to differ between the two airports. Larnaca airport, Cyprus’ main air gateway, handled 957,800 passengers in June, down from around 1.1m in June 2025. By contrast, Paphos airport recorded 420,500 passengers, up from 370,400 a year earlier. The Central Bank of Cyprus (CBC) has highlighted a new warning from the European Systemic Risk Board (ESRB) over the growing cyber risks posed by advanced artificial intelligence models, saying it will continue to monitor developments closely and expects financial institutions to strengthen their resilience against emerging threats. The warning concerns frontier artificial intelligence models, which the ESRB said could significantly reshape the cyber threat landscape in the short to medium term by making cyberattacks faster, larger in scale and more sophisticated. According to the ESRB, these advanced AI models have the potential to accelerate the discovery of software vulnerabilities, support the development and exploitation of malicious cyber tools and significantly reduce the time available for organisations to detect and respond to attacks. The European body warned that these developments represent systemic cyber risks affecting the financial sector as a whole rather than individual institutions. Deputy Shipping Minister Marina Hadjimanolis has reaffirmed Cyprus’ commitment to international maritime cooperation during a reception held at the headquarters of the International Maritime Organisation (IMO) in London, as the island continues to strengthen its place in global shipping diplomacy. The reception, organised by the Shipping Deputy Ministry on the sidelines of the 137th IMO Council, was attended by IMO Secretary-General Arsenio Dominguez and representatives of IMO member states. Addressing guests, Hadjimanolis said such gatherings allowed countries to move beyond the formal setting of negotiations and meetings, while strengthening “the spirit of cooperation and friendship that lies at the heart of the IMO”. She said Cyprus, with its long maritime tradition and strong commitment to international shipping, remains “a maritime nation” with one of the largest fleets in the world under its flag and a well-established maritime centre offering high-quality services across the sector. The Digital Cooperation Organisation (DCO) has launched a new guidebook designed to help governments develop ethical artificial intelligence policies, unveiling the initiative during a high-level event held alongside the first United Nations Global Dialogue on Artificial Intelligence Governance in Geneva. Notably, Cyprus is among the DCO’s member states, having joined the organisation as part of its efforts to strengthen international cooperation on digital transformation and the digital economy. The launch took place on July 8, during a session organised in partnership with the Saudi Data and AI Authority (SDAIA) and the International Center for Artificial Intelligence Research and Ethics (ICAIRE). The event, entitled “Responsible, Trusted, and Safe AI for Prosperity: From Principles to Practice,” was held on the sidelines of the United Nations Global Dialogue on Artificial Intelligence Governance, which took place in Geneva on July 6 and July 7, 2026. The Bank of Cyprus and Wealthyhood have launched a co-branded investment platform aimed at making investing more accessible in Cyprus, with the app available to all residents regardless of whether they are customers of the bank. The launch marks the first major milestone in the strategic partnership between the Bank of Cyprus and European wealth technology startup Wealthyhood, following the bank’s participation as lead investor in the company’s €6 million funding round announced earlier this year. According to the companies, the new Wealthyhood x BoC mobile app and web platform combines Wealthyhood’s digital investment technology with the Bank of Cyprus’ customer base and financial infrastructure. The platform is open to all residents of Cyprus, although existing Bank of Cyprus customers will be able to link their bank accounts instantly to simplify identity verification, fund their investment accounts more quickly and begin investing with fewer onboarding steps. Keo plc shareholders approved a dividend of €1.69 million at the company’s annual general meeting on July 8, 2026, with the payment set to be distributed to eligible investors by August 17, 2026. According to an announcement on Thursday, the approved dividend amounts to 4 cents per fully paid share and will be paid from the company’s 2024 profits, which are held in its revenue reserve. Shareholders recorded on the Cyprus Stock Exchange (CSE) register on July 20, 2026 will be entitled to receive the dividend. The company’s shares will trade ex-dividend from July 17, 2026, while investors purchasing shares up to the close of trading on July 16, 2026, the last cum-dividend date, will qualify for the payment. Limassol-based Island Oil (Holdings) Ltd has announced the acquisition of two oil tankers, Island Polaris and Island Horizon, further expanding its owned fleet as it seeks to strengthen its position in marine fuel transportation. The move forms part of the company’s long-term investment strategy, with Island Oil aiming to boost its logistics capabilities and support growing demand for marine fuel transportation across the Mediterranean and Black Sea. By adding high-quality double-hull tankers to its fleet, the company said it is continuing to invest in operational efficiency, while maintaining high standards of safety and environmental compliance. At the same time, the investment also fits into the group’s wider Environmental, Social and Governance strategy, as well as its decarbonisation roadmap. According to Island Oil, the new tonnage is expected to enhance fuel efficiency and help reduce greenhouse gas emissions per tonne-mile. Chrysostomos Papavassiliou, CEO and chairman of the board of directors of Island Oil, said that “The acquisition of Island Polaris and Island Horizon represents another important step in the execution of our long-term growth strategy.” Vassiliko Cement Works Public Company Ltd has completed the payment of its approved dividend, with eligible shareholders receiving €0.23 per share as of July 7, 2026, the company announced. The dividend comprised €0.22 per share from the company’s 2025 profits and €0.01 per share from 2024 profits held in retained earnings. The payment was made to shareholders who were registered in the Cyprus Stock Exchange (CSE) registry on June 11, 2026, the company’s record date for the distribution. Vassiliko Cement explained that the payment process followed the provisions of the Regulatory Decision for the Operation of the Central Securities Depository and Central Registry, which entered into force on November 13, 2023. Cyprus’ tertiary sector recorded growth across all economic activities in 2024, according to the findings of the services and transport survey released by the Cyprus Statistical Service (Cystat) on Thursday. The survey showed that the production value of all sectors covered increased compared with 2023, highlighting continued expansion in services, transport and related activities. Transportation and storage recorded a 3 per cent increase in production value during 2024, while accommodation and food service activities rose by 10.0 per cent. Information and communication posted the strongest production value growth among the main service sectors, increasing by 22 per cent during the year. Cyprus showcased its agri-food products at the Summer Fancy Food Show 2026, as part of a wider push to strengthen the island’s export presence in the US and other international markets. The Ministry of Energy, Commerce and Industry said Cyprus took part in the New York exhibition from June 28 to 30, in cooperation with the Cyprus Trade Centre in New York, aiming to promote the island’s culinary identity and the quality of its domestic products. Held at the Jacob K. Javits Convention Center, the event is considered one of the leading food and beverage trade shows in North America. This year, it brought together thousands of buyers, distributors, importers and food industry professionals, giving Cypriot producers access to one of the world’s most competitive consumer markets. At the Cyprus booth, visitors were presented with traditional products closely linked to the island’s food heritage, including PDO halloumi, Commandaria and other distinctive Cypriot flavours. The stand was also visited by the Consul General of the Republic of Cyprus in New York, Kyriakos Poyiatzis.