The Cyprus Securities and Exchange Commission (CySEC) on Wednesday released a statement outlining its supervisory priorities for 2025.

According to the announcement, the commission is focused on adapting to emerging regulatory challenges while building on the progress achieved in 2024.

Moroever, the new framework seeks to enhance oversight, address digital risks, and ensure compliance with evolving regulations.

CySEC chairman George Theocharides reiterated the regulator’s commitment to safeguarding investors and maintaining market integrity.

“Our aim is to ensure that investors are protected while strengthening the resilience of the financial sector,” he stated.

According to the announcement, the commission’s supervisory agenda will prioritise ongoing monitoring and thematic reviews of regulated entities.

A major focus will be placed on the implementation of the Digital Operational Resilience Act (DORA) and the Markets in Crypto-Assets Regulation (MiCA).

Additionally, CySEC will introduce initiatives to address risks linked to artificial intelligence (AI) and financial influencers, or ‘fin-fluencers’.

Regulated entities will be required to review and align their internal policies with CySEC’s 2025 priorities, ensuring compliance with DORA and MiCA.

Firms must also enhance governance structures, risk management frameworks, and internal audit processes to meet supervisory expectations.

A particular emphasis will be placed on sustainability, with firms expected to establish robust environmental, social, and governance (ESG) compliance measures and improve disclosure standards.

Meanwhile, investment in technology will be encouraged to enhance ICT risk management and bolster operational resilience.

To support compliance, CySEC will issue circulars and technical documents clarifying regulatory expectations.

It will also engage with stakeholders through workshops and webinars, offering industry participants practical insights and guidance.

Additionally, interim reviews will be conducted to assess implementation progress and provide necessary feedback.

“CySEC is committed to safeguarding investors, ensuring market integrity, and fostering a culture of compliance among regulated entities,” the commission said in its statement.

The commission added that it has “outlined its supervisory priorities for 2025, and is committed to maintaining an open and constructive dialogue with all stakeholders, in order to ensure the effective implementation of its supervisory priorities”.

Theocharides expressed “delight” to launch the commission’s supervisory priorities for 2025, noting that it provides “guidance for regulated entities as to the increasing measures they are expected to take”.

He explained that these measures will enable regulated entities “to comply with evolving regulation as well as the need to address emerging market risks“.

Theocharides pointed out that these include “the widespread adoption of AI and the rise of online promotion of financial products by fin-fluencers“.

“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,” the CySEC chairman concluded.