May 23, 2019, | AtoZ Markets - Forex Trading in Cyprus is now more popular than it ever has been, with a high traded volume. The growing number of Retail FX traders is continuing to drive the volume increase as people become aware of the Forex market and how they can potentially profit from it. Of course, with a huge hike in demand, there is usually a large increase in supply.
Due to significant growth in Fx trading industry in Cyprus, not only in size but in complexity, the role of the Cyprus Securities and Exchange Commission (CySEC) has become more difficult.
At iFX Expo 2019 in Cyprus, the CySEC's Chairwoman Demetra Kalogerou stated that the regulator is planning to increase its staff in order to effectively regulate and monitor the market.
CySEC personnel department will be tripled by 2021
As per the report, one of the main priorities of the CySEC regulator is to triple its staff by 2021 in order to efficiently manage the Fx market. Also, Chairwomen Kalogerou stated that the regulator never has enough personnel at present to effectively monitor the market.
Till date, there are 676 regulated entities in Cyprus, which is a 173.7 % change since 2011 when there were only 247 regulated entities in Cyprus.
CySEC's Chairwoman Demetra Kalogerou quoted: “I think I got out the right message to the government that we need support, we need to have the expertise, because as I said before, a lot of regulations are still coming and existing ones are so complex that we need enough personnel, we need expertise, to monitor the market. But I am confident that they will support me.”
She also spotlighted that when Cyprus was going through its economic crisis in 2013, the regulator still put market surveillance and doubled its staff during that period.
Kalogerou viewpoint on Blockchain and Cryptocurrency
During her speech at the iFX Expo Cyprus 2019, Kalogerou also talked about blockchain, cryptocurrency, and technology. She specifically has targeted the importance of regulating and monitoring the crypto space, as if it left unregulated, it could be a threat to the financial market.
Moreover, the CySEC has already advised that the EU fifth directive should bring crypto activities into their radar. According to her, Anti-money laundering provisions should apply to crypto assets very soon.
Kalogerou quotes on blockchain and cryptospace: “On the one hand, we recognize the value of new technology based on crypto assets, including say, the long-term applicability of blockchain to modern day trade. On the other hand, we see proven AML and FTC risks on crypto assets themselves which jeopardizes not only investor protection but the integrity and the legitimacy of the market and the infrastructure which underpins it.”
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