​Cyprus Regulator Proposes Higher Licensing and Annual Fees for Investment Firms

Cyprus’ Securities and Exchange Commission (CySEC) has launched a public consultation on proposed changes to its fee structure that would raise the cost of operating regulated investment businesses on the island, while removing a standalone fee for crypto-related activities under the EU’s Markets in Crypto-Assets (MiCA) framework.

Under the proposal, application and annual fees for Cyprus Investment Firms (CIFs), foreign branches, and market operators would increase and be more closely aligned with a firm’s size, business model, and turnover. CySEC also plans to introduce new charges for material change notifications and algorithmic trading activities. The consultation period runs until 13 February.

One of the most significant changes concerns CIF licensing costs. Instead of a flat €7,000 fee for investment services, firms would pay €8,000 per service in most cases, rising to €15,000 where dealing on own account is involved. Fees for operating a multilateral or organised trading facility would increase to €30,000 from €25,000.

At the same time, CySEC proposes to remove the existing €5,000 fee for extending a CIF licence to cover crypto-related activities. The regulator said this charge is no longer necessary because MiCA introduces a harmonised and directly applicable regime for crypto-asset service providers across the EU, making additional national approvals redundant.

The proposal also reshapes ongoing supervision fees. Annual subscription charges would include a higher flat component and steeper turnover-based increments once annual revenue exceeds €500,000. For example, turnover between €500,001 and €1 million would be charged at 2%, with declining percentages applied to higher bands. Firms engaged in dealing on own account would face an annual fee of €30,000 for that activity alone.

In addition, CySEC plans to bring branches of EU investment firms operating in Cyprus into the annual fee framework. These branches would pay fees calculated using the same components as CIFs, but discounted to 40% of the amount applied to domestic firms.

CySEC said the changes are intended to modernise its fee model, remove obsolete items, and better reflect supervisory demands. Responses submitted after 13 February 2026 will not be considered unless the consultation period is formally extended.