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 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 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”.