Topping the priorities of the Cyprus Securities and Exchange Commission (SEC) in 2025 is the impact of artificial intelligence (AI) and the Market in Crypto-Assets Regulation (MiCA).

With artificial intelligence (AI) reshaping financial markets and the growing influence of online financial promoters (fin-fluencers), CySEC is now setting stricter compliance expectations.

The regulator is also focusing on implementing the Digital Operational Resilience Act (DORA) and the Markets in Crypto-Assets Regulation (MiCA), boosting its commitment to investor protection and market stability.

Compliance Mandates for Regulated Entities

“Supervisory Priorities for 2025 provide guidance for Regulated Entities as to the increasing measures they are expected to take in order to comply with evolving regulation as well as the need to address emerging market risks, such as the widespread adoption of AI and the rise of online promotion of financial product by fin-fluencers,” CySEC Chairman, Dr George Theocharides said.

CySEC is requiring regulated entities to align with its 2025 supervisory agenda by revising policies, enhancing governance structures, and improving risk management frameworks.

Firms must also prepare for reviews targeting AI usage, financial influence practices, and compliance within fund management operations. ESG compliance remains a key priority, with firms expected to ensure robust sustainability reporting and disclosure processes.

Additionally, investment in technology will be crucial to bolstering ICT risk management and operational resilience. To facilitate compliance, CySEC plans to issue circulars and technical documentation, providing clear expectations for DORA and MiCA adherence.

Investor Protection and Market Integrity

The regulator plans to engage directly with stakeholders through workshops and webinars, addressing industry concerns and promoting a proactive compliance culture. Interim reviews will be conducted to assess firms’ progress in meeting the new requirements.

CySEC’s strategic focus on digital resilience, enhanced governance, and market transparency underscores its commitment to fostering a more secure and stable financial landscape in Cyprus.

According to the regulator's recent report this year, the number of supervised entities has increased by 11.8%, reaching 834, with an additional 60 applications under review. CySEC also expects the MiCA regulation to boost regulatory oversight and attract crypto companies to Cyprus.

Source: Finance Magnates