Dr. George Theoharides, Chairman of the Cyprus Securities and Exchange Commission (CySEC), addressed the Parliamentary Finance Committee for the 2025-2027 budget discussion. He thanked the government for their ongoing support of the commission’s work, which is central to maintaining a stable financial environment in Cyprus.

CySEC Highlights Growth, Regulatory Demands, Transformation

Theoharides outlined key factors influencing the Cyprus financial sector, including rising regulatory demands, digital transformation, and sustainable investments. He noted that the investment services sector has been growing steadily, contributing to the broader Cypriot economy despite challenging global conditions.

CySEC's focus remains on responsible market development and investor protection. Over the past five years, the number of supervised entities has risen by 11.8%, reaching 834, with an additional 60 applications under review. The introduction of the European MiCA regulation on crypto-assets is also expected to increase regulatory oversight and attract crypto firms to Cyprus.

Τοποθέτηση του Προέδρου της ΕΚΚ ενώπιον της Κοινοβουλευτικής Επιτροπής Οικονομικών και Προϋπολογισμούhttps://t.co/DJCzyZ7osZ

CySEC’s Chairman statement at the Standing Committee on Financial and Budgetary Affairshttps://t.co/o99M9NgSG1

— CySEC - Cyprus Securities and Exchange Commission (@CySEC_official) January 27, 2025

Implementing DORA to Strengthen Cybersecurity

The Cypriot financial sector is undergoing a digital transformation, with artificial intelligence and fintech expected to drive further growth. CySEC is investing in proactive supervision, leveraging advanced systems to monitor compliance. The commission is also preparing for the full implementation of the Digital Operational Resilience Act (DORA), aimed at enhancing cybersecurity Cybersecurity Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer Cybersecurity is a blanket term that refers to the protection of computer systems and networks from the theft.More broadly speaking, cybersecurity can also represent countermeasures against damage to hardware, software, or electronic data, as well as from the disruption or misdirection of the services they provide.It was not long ago that the term cybersecurity not exist as it was first used in 1989. In today’s vernacular cybersecurity, refers to measures taken to protect a computer or computer Read this Term across financial services.

In terms of regulatory enforcement, CySEC has imposed administrative fines of €7.9 million over the past three years, with a focus on compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term and investor protection. The commission has also been active in promoting financial literacy through various initiatives, including online materials and campaigns.

Growing European Regulations Increase Responsibilities

Theoharides also highlighted the ongoing legislative developments at the European level, which are expected to strengthen the regulatory framework for investment services. CySEC’s budget for 2025 is projected at €17.5 million, primarily for staff salaries and technological upgrades. The commission also forecasts an increase in revenue from 2026, with the implementation of a new pricing policy for supervised entities.

Theoharides emphasized the growing complexity of European regulations, particularly in technology, which significantly increases CySEC’s supervisory responsibilities. He stressed the need for continued support and resources to effectively oversee market entities and maintain Cyprus's position as a "leading international financial hub".