CySEC Highlights AI, Fin-Influencers, and Regulatory Demands in 2025 Agenda

The Cyprus Securities and Exchange Commission (CySEC) announced its supervisory priorities for 2025 on Wednesday, emphasizing the importance of adapting to emerging regulatory challenges while building on achievements made in 2024.

The commission's newly released framework aims to enhance oversight, address digital risks, and ensure compliance with evolving regulations.

George Theocharides, chairman of CySEC, reaffirmed the commission's commitment to investor protection and market integrity. “Our aim is to ensure that investors are protected while strengthening the resilience of the financial sector,” he stated.

The supervisory agenda outlined by the commission places a significant focus on ongoing monitoring and thematic reviews of regulated entities. A major aspect of the agenda involves implementing the Digital Operational Resilience Act (DORA) and the Markets in Crypto-Assets Regulation (MiCA). CySEC will also introduce new initiatives to mitigate risks associated with artificial intelligence (AI) and financial influencers, commonly referred to as 'fin-fluencers.'

Regulated entities are expected to review and align their internal policies with CySEC’s 2025 priorities, ensuring compliance with both DORA and MiCA. In addition, firms must improve their governance structures, risk management frameworks, and internal audit processes to meet supervisory expectations.

The commission is placing particular emphasis on sustainability measures. Firms are required to establish strong environmental, social, and governance (ESG) compliance protocols and enhance their disclosure standards.

CySEC is also urging firms to invest in technology to enhance information and communication technology (ICT) risk management and strengthen operational resilience. To aid compliance, the commission will distribute circulars and technical documents clarifying regulatory expectations. Additionally, CySEC will engage with stakeholders through workshops and webinars, providing practical insights and guidance.

To track progress, CySEC will conduct interim reviews, assessing the implementation of its priorities and offering feedback to regulated entities.

The commission reiterated its dedication to maintaining investor protection and market integrity while fostering a compliance-oriented culture among regulated entities. “CySEC is committed to safeguarding investors, ensuring market integrity, and fostering a culture of compliance among regulated entities,” the commission stated.

George Theocharides expressed his satisfaction with the launch of the supervisory priorities for 2025. “We are delighted to provide guidance for regulated entities as to the increasing measures they are expected to take,” he remarked. “These measures will enable regulated entities to comply with evolving regulation as well as the need to address emerging market risks,” he added.

Theocharides highlighted the importance of addressing new challenges, such as AI and online financial promotion via fin-fluencers. “These include the widespread adoption of AI and the rise of online promotion of financial products by fin-fluencers,” he pointed out.

Concluding his remarks, Theocharides emphasized CySEC’s steadfast commitment to its regulatory mission. “CySEC remains firmly committed to safeguarding investors, ensuring market integrity, through fostering a culture of compliance among regulated entities and the effective implementation of its supervisory priorities,” he concluded. 

By fLEXI tEAM