corrective measures

Progress on stalled infrastructure projects , – minister

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Progress on stalled infrastructure projects , – minister

Within the next two weeks, answers will be given for several stalled infrastructure projects, including the impasse over Larnaca’s revamped port with concession holder Kition Ocean Holdings (KOC). The Ministry of Transport is considering the option of canceling the contract with KOC due to breach of contractual terms, which could result in the port reverting to management by the state’s Ports Authority. The ministry is also considering other investors who have shown interest in the project.

Stricter oversight on cross-border credit services

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Stricter oversight on cross-border credit services

The processes for licensing and supervision of credit managers are becoming stricter, with new legislation being introduced to harmonize national law with European directives. Credit managers must be licensed by their member state of origin before starting their activities, meeting specific conditions such as robust governance and protection rules for borrowers. Buyers will not be licensed, except for those managing their own portfolios. Credit buyers will be supervised by the Central Bank and subject to penalties for any violations. Companies in the debt acquisition sector will be automatically recognized as licensed credit managers. The bills also ensure consumer protection, including timely information on credit agreement changes and the right to raise defenses against loan buyers.

Calls for , ‘urgent’ action on migration

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Calls for , ‘urgent’ action on migration

The House interior committee called on the government to urgently and effectively manage the migration issue, focusing on upgrading infrastructure for reception centers and accommodation for asylum seekers, improving the procedures for examining asylum applications, and providing access to legal representation for unaccompanied minors. The government should also adopt procedures to ensure humane living conditions in reception centers and suppress incidences of crime in and around these centers.

MiCA for cryptos by end of year, early-2025

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MiCA for cryptos by end of year, early-2025

Cyprus plans to implement the Markets in Crypto-Assets (MiCA) regulation by the end of this year or early 2025, aiming to protect investors and promote transformation in the crypto asset sector in the European Union. The MiCA framework, created by the European Commission, focuses on maintaining financial stability throughout the EU. Currently, there are no safeguards at the Union level for the crypto asset market, with only individual national legislation in place. The number of crypto-asset service providers increased from seven in 2022 to 11 by the end of that year, with a total of 16 applications pending so far this year. The Chairman of the Cyprus Securities and Exchange Commission (CySEC), Dr. George Theocharides, anticipates more CASP companies will emerge once MiCA is implemented. In 2023, CySEC conducted over 700 on-site and remote thematic inspections of supervised entities, assessed compliance with prudential supervision framework limits, and monitored Cypriot Investment Firms (CIFs) affected by Russia-Ukraine sanctions. CySEC also evaluated promotional material of over 35 CIFs, conducted investigations into CIFs, and imposed administrative sanctions totaling approximately EUR 2.2 million in 2023, with a total of EUR 6 million in administrative sanctions over the last three years. Additionally, 19 cases of CIFs had their operating licenses revoked or suspended. Dr. Theocharides highlighted the importance of the upcoming MiCA regulation for crypto-asset service providers, aimed at ensuring investor protection and market integrity. He urged investors to be cautious when investing in crypto-assets due to the associated risks. Despite challenges, the capital market in Cyprus remains of significant interest, with 82 entities receiving approval in 2023 and the number of supervised entities at 830 by the end of February 2024. CySEC also participated in events promoting financial literacy and issued warnings about entities posing as CySEC officials or imitating its website.

Akamas works , ‘on the right track’

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Akamas works , ‘on the right track’

Environmentalists expressed satisfaction with a government report on construction works in the Akamas, which proposes corrective measures to restore environmental damage. The report was welcomed by environmental organizations such as BirdLife Cyprus, Terra Cypria, the Wildlife Protection Association, and the Initiative for the Conservation of Natural Coasts. The infringements addressed include non-compliance with the terms of the Special Ecological Assessment for construction works aimed at improving the road network in Akamas, including unnecessary walls, dumping materials on undisturbed ground, and arbitrary widening of roads. The environmental organizations view the proposed remedies as a positive development for Akamas’ future and appreciate the commitment to re-evaluate future road network improvements and visitor service junctions. However, they are concerned about the incomplete conclusions of the administrative investigation into the works and the lack of responsibility assignment. They await the outcome of a third investigation to attribute responsibility. This issue is underscored by the EU’s decision to refer Cyprus to the European Court of Justice for inadequate protection of Natura 2000 sites, highlighting the urgency of implementing Management Plans for these sites, which are still in progress and lack legal force.