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.
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 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.
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.
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 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.
This post is originally published on FINANCEMAGNATES.
