Interview with Simon Zenios, Director of Simon Zenios & Co LLC, on the Growing Landscape of Tech Law in Cyprus
LawyersInCyprus (LiC): Today, we have the pleasure of speaking with Simon Zenios, Director of Simon Zenios & Co LLC, a prominent law firm specializing in tech law in Cyprus. With extensive expertise in Crypto, Forex, AI, and Electronic Money Institutions (EMIs) and Payment Institutions (PIs), Simon will be sharing insights on the tech law landscape in Cyprus and how his firm is supporting the rapid evolution of these industries. Welcome, Simon.
Simon Zenios: Thank you! I’m excited to discuss the current and future developments in tech law in Cyprus, a field that’s moving at a remarkable pace.
- Q1: What makes Cyprus an attractive hub for tech companies, particularly in industries like Crypto, Forex, and AI?
Cyprus has built a reputation as a dynamic center for tech-driven industries, thanks to several unique advantages. First, Cyprus is part of the European Union, offering businesses access to the European market and a well-regulated financial environment. Additionally, our corporate tax rates are highly competitive, and we have a network of treaties that facilitate international business.
Moreover, Cyprus has developed robust regulatory frameworks that support emerging technologies like cryptocurrency, forex trading, and AI. This legal infrastructure is crucial because it gives businesses confidence that they are operating within clear legal boundaries. As these industries evolve, Cyprus continues to adapt its regulations to attract innovative companies, especially in areas like blockchain and digital finance. - Q2: Cryptocurrency regulations are rapidly evolving worldwide. How is Cyprus addressing the regulatory needs of the crypto industry?
Cyprus has been proactive in creating a friendly environment for cryptocurrency businesses. The country’s approach has been one of careful regulation, allowing innovation while ensuring compliance with EU standards, particularly regarding anti-money laundering (AML) and counter-terrorist financing (CTF). The Cyprus Securities and Exchange Commission (CySEC) has introduced specific guidelines for crypto asset service providers, or CASPs, which require registration and compliance with AML regulations.These guidelines establish a framework where crypto companies, exchanges, and digital wallet providers can operate legally and securely. Our firm works closely with crypto businesses to help them navigate these regulatory requirements, from obtaining licensing with CySEC to implementing AML protocols. We’re seeing more crypto firms choosing Cyprus due to this clear, supportive regulatory environment.
- Q3: Besides cryptocurrencies, Forex trading is another major sector in Cyprus. How does the Cypriot regulatory framework support Forex firms?
Forex is one of the most established financial sectors in Cyprus, and CySEC plays a central role in regulating it. CySEC licenses and supervises investment firms, including Forex companies, ensuring that they meet the EU’s MiFID II standards, which focus on transparency, investor protection, and market integrity. This oversight is vital because it attracts reputable Forex firms and assures investors of fair practices.Cyprus’s regulatory support makes it attractive for Forex companies, as the island provides a sophisticated legal and operational structure for businesses in this sector. At Simon Zenios & Co LLC, we assist Forex firms in obtaining their CySEC license, ensuring compliance with MiFID II, and implementing internal controls to meet ongoing regulatory standards. Cyprus’s long-standing experience in Forex regulation is a strong factor in its success in this field.
- Q4: Artificial Intelligence is transforming various industries globally. What legal considerations should companies in Cyprus keep in mind when implementing AI technologies?
AI is indeed transforming industries, but it also raises new legal challenges, especially in areas of data privacy, intellectual property, and ethical use. In the EU, AI-related activities must align with the General Data Protection Regulation (GDPR), especially when handling personal data. Companies must be transparent about how AI processes data and must have robust data protection measures in place.Moreover, with the EU’s upcoming Artificial Intelligence Act, companies using AI technologies will need to classify their AI systems based on risk levels, from minimal to high risk, each with corresponding compliance requirements. Cyprus, as part of the EU, will adopt these guidelines, which means companies here will need to ensure their AI systems meet these standards. At our firm, we help clients understand these regulatory implications, draft compliance policies, and secure their intellectual property rights on AI innovations.
- Q5: Electronic Money Institutions (EMIs) and Payment Institutions (PIs) are growing fast. Can you explain how these are regulated in Cyprus and what businesses should know about establishing one here?
Absolutely. EMIs and PIs are essential components of the modern financial ecosystem, facilitating digital transactions and broadening financial inclusion. In Cyprus, EMIs and PIs are regulated by the Central Bank of Cyprus, in line with the EU’s PSD2 (Payment Services Directive 2). This framework sets out comprehensive requirements for obtaining an EMI or PI license, including capital requirements, risk management protocols, and strong data security measures.
Businesses interested in establishing an EMI or PI in Cyprus should be prepared to meet these stringent requirements, which ensure consumer protection and transaction security. Our firm assists clients in the entire licensing process, from drafting business plans and setting up compliance frameworks to communicating with the Central Bank of Cyprus. The EU passporting rights granted by PSD2 allow EMIs and PIs based in Cyprus to operate across the EU, making Cyprus an ideal location for these institutions. - Q6: As technology and financial laws rapidly evolve, how does your firm stay ahead to support clients in these tech-driven industries?
Staying ahead in tech law requires continuous learning and adaptation. We closely monitor changes in EU and local regulations to anticipate the needs of tech-driven businesses. In addition, we actively participate in industry events and maintain strong relationships with regulatory bodies, which gives us early insights into policy changes.Our approach is proactive: we regularly update our clients on regulatory developments and advise them on compliance strategies before regulations are enforced. Whether it’s in crypto, forex, AI, or digital payments, we offer clients a robust legal foundation so they can focus on innovation without the risk of regulatory surprises. Our goal is to provide not only legal support but also strategic guidance that aligns with our clients’ business goals in these dynamic industries.
- Q7: Looking forward, what trends do you see shaping tech law in Cyprus, especially concerning the sectors you specialize in?
Tech law in Cyprus will likely continue evolving to support innovation in blockchain, digital assets, and AI. As these technologies mature, regulatory standards will become more specific, and we’ll likely see more structured frameworks, especially with the upcoming EU Artificial Intelligence Act and further developments in digital finance laws.
Another trend is the increase in international collaboration. With global regulatory bodies converging on standards for emerging technologies, Cyprus is likely to align closely with international best practices. This alignment will only strengthen Cyprus’s reputation as a hub for compliant, innovative tech companies. We’re preparing for these trends by continuously expanding our expertise and refining our service offerings to keep pace with the demands of this evolving sector.
LawyersInCyprus (LiC): Thank you, Simon, for providing such valuable insights. It’s clear that Cyprus offers incredible opportunities for tech-driven industries, and it’s reassuring to know that firms like Simon Zenios & Co LLC are here to guide businesses through the legal landscape.
Simon Zenios: Thank you for having me. It’s an exciting time for tech law in Cyprus, and we’re committed to supporting companies that are driving innovation forward.
For more information on tech law in Cyprus, visit Simon Zenios & Co LLC to explore our range of specialized legal services.
