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) on the financial market.

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

The regulator is focusing on implementing the Digital Operational Resilience Act (DORA) and the MiCA regulations, 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.

Δελτίο Τύπου – Οι Εποπτικές Προτεραιότητες της ΕΚΚ για το 2025https://t.co/PMaXxhqK7R

Press Release – CySEC launches Supervisory Priorities for 2025https://t.co/AvzmYZiYgW

— CySEC - Cyprus Securities and Exchange Commission (@CySEC_official) February 12, 2025

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 Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term 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 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.