The Fintech Landscape in Cyprus in 2025: Innovation, Regulation, and Growth
Cyprus continues to evolve into a dynamic fintech hub, driven by strong digital adoption, new regulatory frameworks, and a growing appetite for innovation. Over the last year, the island has experienced accelerated digital transformation, partly fuelled by the post-pandemic push toward remote services and automation.
A standout development has been the increasing momentum in the crypto-assets market. The earlier national framework for Crypto-Asset Service Providers (CASPs), introduced primarily for AML supervision, paved the way for firms such as Revolut and eToro to register locally. With the full implementation of the Markets in Crypto-Assets Regulation (MiCA) from December 2024, Cyprus is now preparing for more harmonised EU-wide crypto activity, including passporting—opening the door for firms seeking a single regulatory base for the entire EU.
Artificial intelligence is also becoming an integral part of Cyprus’ digital economy. A rising percentage of local businesses are using AI tools for functions such as automation, machine learning and data analysis—capabilities that are increasingly essential for fintechs in areas like fraud monitoring, risk modelling, and algorithmic trading.
Cyprus’ broader digital ecosystem is expanding, too. E-commerce adoption continues to grow, pushing businesses toward digital payments and secure transaction infrastructures. With more Cypriot companies selling goods and services online, the demand for reliable fintech solutions—especially payment gateways, KYC verification and digital onboarding—continues to rise.
Regulators are playing a strong supporting role. Both CySEC and the Central Bank of Cyprus operate “Innovation Hubs,” offering fintechs an early, informal channel to understand compliance expectations. CySEC’s Regulatory Sandbox, newly introduced, allows firms to test innovative financial models under controlled supervision—an important step toward encouraging responsible innovation.
Cyprus is also modernising digital identity infrastructure. The rollout of a national eID system enables secure digital authentication and electronic signatures, potentially transforming onboarding processes for financial services and reinforcing the country’s shift towards a fully digital economy.
Overall, Cyprus enters 2025 as a jurisdiction with a rapidly developing fintech ecosystem supported by EU-aligned regulation, strategic investment, and a growing network of technology-driven firms.
How We Can Assist You
Our firm offers strategic legal and regulatory support to fintech companies navigating the Cypriot and EU landscape. We assist with:
- MiCA compliance and CASP registrations
- Licensing for EMIs, PIs, and investment firms
- Development and review of AML/KYC frameworks
- Regulatory Sandbox and Innovation Hub submissions
- Cross-border structuring and passporting strategies
- Contract drafting, risk assessments, and compliance audits
We guide you through every step so your fintech grows with confidence and full regulatory clarity.
Feel free to contact us for further professional assistance.
Disclaimer: The information contained in this article is provided for informational purposes only, and should not be construed as legal advice on any matter. Andria Papageorgiou Law Firm is not responsible for any actions (or lack thereof) taken as a result of relying on or in any way using information contained in this article and in no event shall be liable for any damages resulting from reliance on or use of this information.
