The Cyprus Securities and Exchange Commission (CySEC) has outlined its supervisory priorities for 2025, focusing on emerging regulatory challenges and the evolving financial landscape. Key areas of attention will include artificial intelligence (AI), financial influencers (fin-fluencers), and compliance within fund management operations.

Focus On AI And Fin-fluencers

CySEC aims to adapt to the growing impact of AI on financial markets, as well as the influence of online financial promoters (fin-fluencers). With an increase in supervised entities, now at 834, the regulator is setting stricter compliance expectations for firms. Dr. George Theocharides, CySEC Chairman, emphasized that the supervisory priorities will guide regulated entities to enhance governance, and risk management, and address emerging market risks such as AI adoption and online financial promotions.

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Digital Operational Resilience And MiCA

A major part of the 2025 agenda is the implementation of the Digital Operational Resilience Act (DORA) and the Markets in Crypto-Assets Regulation (MiCA). These regulations aim to strengthen investor protection and ensure market stability. Firms will be required to review their policies, revise internal governance structures, and improve risk management frameworks to comply with these new requirements.

ESG And Technology Investment

ESG compliance remains a critical priority for CySEC in 2025. Firms will need to establish robust sustainability practices and improve reporting and disclosure standards. Additionally, investment in technology will be essential to enhance ICT risk management and ensure operational resilience. CySEC plans to issue circulars and technical documentation to clarify expectations for DORA and MiCA adherence.

Stakeholder Engagement And Interim Reviews

To assist firms in meeting these expectations, CySEC will host workshops and webinars to engage directly with stakeholders. These events will provide practical guidance for compliance and foster a culture of proactive regulation. Interim reviews will also be conducted to assess firms’ progress and provide feedback for continued compliance.

Conclusion

CySEC’s 2025 supervisory agenda reflects its commitment to maintaining market integrity, safeguarding investors, and ensuring that firms can successfully navigate the evolving regulatory landscape. By focusing on AI, fin-fluencers, and sustainable growth, CySEC aims to build a more resilient and transparent financial sector in Cyprus.

The India-Greece-Cyprus Business Council (IGC) was officially launched at the prestigious Taj Mahal Palace in Mumbai, marking a significant milestone in enhancing economic relations among the three countries. This initiative follows the Memorandum of Understanding (MoU) signed in September 2024 between Eurobank and the Indian Chamber of Commerce (ICC).

Launch Ceremony And Key Attendees

The ceremony was attended by representatives from the Greek and Cypriot embassies in India, as well as prominent business leaders. Notable attendees included Mr. Abhyuday Jindal, President of the ICC and CEO of Jindal Stainless Ltd., and Mr. Fokion Karavias, CEO of Eurobank.

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New Opportunities In Trade And Investment

The IGC aims to establish a robust business platform to foster strategic cooperation in sectors such as infrastructure, shipping, technology, financial services, and small and medium-sized enterprises (SMEs). With India’s growing economic influence and Greece and Cyprus serving as key gateways to Europe, the council seeks to enhance cross-border trade, investment, and political ties.

Mr. Abhyuday Jindal emphasized the importance of this collaboration, stating:
“This partnership reflects the shared vision of India, Greece, and Cyprus for economic growth. The IGC will be a catalyst for new business opportunities, especially in infrastructure, technology, renewable energy, and shipping.”

The Role Of The Banking Sector

Eurobank’s CEO, Mr. Fokion Karavias, highlighted the importance of the banking sector in facilitating trade, noting:
“Eurobank aims to serve as a key partner for Indian businesses seeking to expand into the European Union. The IGC will be a bridge for investors looking for new opportunities.”

Sustainable Development And Future Initiatives

The IGC focuses on modern global economic priorities, including digital transformation, green investments, and the creation of resilient trade ecosystems. It will also focus on supporting SMEs and start-ups, ensuring that companies of all sizes benefit from this collaboration.

The IGC’s initial strategic actions include trade missions, business forums, and knowledge exchange platforms designed to maximize opportunities for cooperation between India, Greece, and Cyprus.

By the end of spring, Larnaca aims to implement a smart parking system as part of its broader initiative to become a smart city. This marks the first step in the “Larnaca Becomes a Smart City” program, which will also include upgrades to street lighting and waste management systems.

Smart Parking System Set To Launch

The tenders for the smart parking system are expected to be awarded in early March, with installation to begin in municipal parking lots in Mackenzie and the city center. Larnaca Mayor Andreas Vyras has stated that the goal is to have the system in place before the start of the tourist season, with an estimated budget of €2 million.

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How It Works

The system will allow both residents and visitors to benefit from more efficient parking. Through an electronic application, users will be able to view available parking spaces and monitor average parking times during peak hours. The sensors, which will be installed in the parking areas, will send data wirelessly to the city’s Smart City platform. Citizens can also make electronic payments through their mobile phones.

Inclusive Features

The system will support a range of special user categories, such as people with disabilities, permanent residents, and delivery vehicles. It will also be integrated with controlled on-street parking areas, including those with electric vehicle charging stations.

Seamless Integration With Other Parking Systems

The plan includes integrating this smart parking system with both public and private parking systems, offering drivers a comprehensive view of all available parking options across the city.

This initiative is a major step toward transforming Larnaca into a modern, tech-savvy city that meets the needs of its residents and visitors while also contributing to a sustainable future.

At the World Governments Summit in Dubai on February 12-13, Cyprus and the UAE took a significant step in advancing artificial intelligence (AI) collaboration by signing a Memorandum of Understanding (MoU). The MoU was signed by Cyprus’ Deputy Minister of Innovation, Nicodemos Damianou, and the UAE Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, Omar Sultan Al Olama.

A Shared Vision For Innovation And Socio-Economic Progress

The MoU, signed during a summit that attracts global leaders in technology, aims to enhance bilateral ties between the two nations. It seeks to foster innovation and tackle socio-economic challenges jointly, facilitating the exchange of best practices and accelerating the integration of AI across both public and private sectors. Both nations are working towards enhancing their respective AI ecosystems.

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Damianou expressed his gratitude for the hospitality and commitment shown by the UAE and emphasized that this partnership would build a more effective and tangible relationship between the countries. He underscored the importance of AI in driving technological progress and its potential to offer solutions to common challenges, highlighting that international cooperation with AI pioneers like the UAE is crucial for its responsible and effective development.

“This MoU reflects our shared commitment to harness AI as a key pillar for the development of our economies, industries, and societies,” said Damianou. He also expressed hope that this partnership could evolve into a regional effort, leveraging Cyprus’ strategic position and the UAE’s technological leadership.

UAE’s Commitment To Global AI Cooperation

For his part, Minister Al Olama emphasized the role of international collaboration in advancing AI. He pointed out that such partnerships align with the goals of the World Governments Summit 2025, underscoring the UAE’s position as a global hub for AI innovation. He stressed that these partnerships are essential for building a sustainable future based on advanced technologies.

AI’s Potential To Transform Global Economies

AI is widely recognized for its potential to revolutionize productivity and significantly impact global GDP. According to PwC, strategic investment in AI technologies is vital to unlocking this potential. The consulting firm highlights that AI can drive labor productivity improvements and, in turn, stimulate economic growth. It predicts that by 2030, 45% of total economic gains will stem from product enhancements driven by AI, fostering consumer demand through increased product variety, personalization, and affordability.

Elon Musk has announced that Grok 3, his AI chatbot set to rival OpenAI’s ChatGPT, is in its final development stages and will be ready for launch in the next week or two. During a video call to the World Governments Summit in Dubai on Thursday, Musk revealed that Grok 3 is already outperforming its competitors in internal tests, particularly in terms of reasoning capabilities.

“Grok 3 has very powerful reasoning abilities, and in our tests so far, it’s outperforming anything we’re aware of,” Musk stated, hinting at the bot’s promising potential. The tech mogul, who founded xAI, is determined to challenge the dominance of Microsoft-backed OpenAI and Google’s Alphabet in the AI space. Musk also co-founded OpenAI, though his recent ventures have clashed with the company.

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Musk’s tensions with OpenAI escalated earlier this week, with a consortium led by him offering $97.4 billion to acquire OpenAI’s nonprofit assets. This marks a continuation of Musk’s ongoing criticism of OpenAI’s shift towards a for-profit model, which he believes undermines the original non-profit ethos. “OpenAI has reached where it is with a dual-profit, non-profit structure. But now, they’re trying to erase the non-profit, which seems excessive,” Musk commented.

On a broader scale, Musk proposed significant cuts to U.S. government spending, claiming that a reduction of $1 trillion or more could eliminate inflation by 2026. “We could see the economy grow at 4-5% in real terms while reducing government expenditure by 3-4% of GDP, possibly a trillion dollars or more. The result would be no inflation from 2025 to 2026,” he explained.

Musk also discussed his partnership with the UAE, announcing plans to collaborate on the “Dubai Loop,” an ambitious underground high-speed transport system. He likened the concept to a “wormhole,” though details remain scarce.

In his remarks on international politics, Musk suggested that the U.S. should take a step back from global affairs. “The U.S. has been too pushy in the past. I think we should generally leave other countries to their own business,” he stated, drawing attention to his more isolationist stance.

This statement comes on the heels of controversial remarks made by former U.S. President Donald Trump, who proposed a drastic plan for the Gaza Strip that has drawn fire from the Arab world.

Musk’s continued focus on reshaping both the AI landscape and international relations underscores his willingness to challenge established norms in technology and geopolitics.

Cyprus is on the verge of facing legal action from the European Union for failing to implement new regulations aimed at speeding up the approval process for renewable energy projects. On Wednesday, the European Commission issued a reasoned opinion to Cyprus and seven other EU member states, marking the second stage in the Commission’s five-step procedure for dealing with non-compliance.

Eight EU Countries At Risk Of EU Court Referral

The Commission’s decision follows the failure of these countries to transpose the EU laws into their national legislation. Alongside Cyprus, the other nations facing action include Bulgaria, France, Italy, the Netherlands, Spain, Slovakia, and Sweden. These laws are designed to simplify and expedite the permit process for renewable energy and infrastructure projects, which are essential for integrating additional capacity into the electricity grid.

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The Commission has emphasized that these laws set clear deadlines for granting permits, with a presumption that renewable energy projects and their associated infrastructure are of “overriding public interest.”

New Accelerated Procedures For Renewable Projects

One of the most significant provisions is the creation of renewable energy acceleration zones, where projects can benefit from shorter approval timelines due to their minimal environmental impact. These rules were intended to be implemented across all 27 EU member states by July 2024, but only 18 countries have complied so far, with the eight aforementioned nations lagging.

Pressure Builds On Cyprus And Other Holdouts

The Commission is now giving these eight countries two months to respond and take the necessary actions. If they fail to do so, the Commission could refer them to the European Court of Justice, a step that could result in significant fines.

This latest development comes shortly after Cyprus received several letters of formal notice from the Commission on various environmental issues, including directives related to air pollutants and hazardous substances in electrical equipment.

Cyprus is taking strong measures to combat the increasing risk of wildfires in its mountain villages. A new strategy, introduced by the Forestry Department and Mountain Commissioner Charalambos Christophinis, aims to protect both the environment and local communities.

Main Causes Of Rising Fire Risk

The risk of wildfires has grown due to rural abandonment and climate change. These factors have caused a dangerous buildup of flammable material. Prolonged droughts and lack of rainfall have only made the situation worse. Authorities are particularly concerned about the mountainous and semi-mountainous regions, where the risk to lives and property is highest.

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Creating A Fire-Resistant Barrier

A key component of the new plan is the creation of a “protective ring” around vulnerable areas. This protective ring will be placed within a two-kilometer radius of state forests. The goal is to reduce the accumulation of flammable material, making it harder for fires to start and spread.

Collaboration For Success

These measures are part of the ‘Vegetation Management Study for Fire Protection of Forests and Parasitic Communities’ program. The Ministry of Agriculture will implement these changes within state forests, while local governments will manage areas outside the forests.

Prevention And Vigilance Are Key

“Preventing fires and staying vigilant are our strongest tools,” authorities stated. They emphasized that cooperation from local communities and government bodies is crucial to ensuring the safety of all residents.

Recent Wildfires Highlight Urgency

Cyprus has faced severe wildfires in recent years, including one in June that destroyed more than 3,300 hectares of land and forced evacuations. The Paphos area was hit hardest, with nearly two dozen homes damaged. While no lives were lost, the event highlighted the urgent need for better fire prevention strategies. The wildfire season typically begins in late April and lasts for several months.

The Bank of Cyprus has made history by becoming the first organization in both Cyprus and Southeastern Europe to earn the prestigious ISO 37301 certification, an international standard for compliance management systems. This accomplishment places the bank in an exclusive group of European financial institutions recognized for their rigorous approach to compliance.

ISO 37301, endorsed by the European Banking Authority, provides a comprehensive framework focused on risk management and process optimization within Compliance units. It is a significant milestone that not only enhances the integrity and transparency of the organization but also improves its reputation by showcasing a commitment to ethical business practices and the best compliance standards.

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Marios Skandalis, Chief Compliance Officer at Bank of Cyprus, expressed the significance of this achievement: “The ISO 37301 certification is not just another accolade; it serves as an independent validation of the effectiveness of our Compliance function. It represents a lasting legacy for our customers, investors, and partners, reinforcing the trust we share with them.”

Cypriot businesses have proven to be more resilient and globally integrated than many of their European counterparts, according to the latest findings from the European Investment Bank (EIB) Group Investment Survey. The report, which surveyed approximately 13,000 companies across the EU and the United States, highlights the strength and adaptability of Cypriot firms in the face of recent challenges.

Notably, Cyprus has experienced an 18% increase in investment since the pre-pandemic period, a growth that surpasses many other EU countries. This surge is partly attributed to the financial support provided by the EU’s Recovery and Resilience Facility (RRF). Moreover, Cypriot businesses report higher satisfaction with their investment levels compared to the broader EU landscape.

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The survey also reveals that Cypriot companies are leading the way in terms of global trade integration. A remarkable 81% of businesses in Cyprus are engaged in global markets, far exceeding the EU average of 63%. This strong international presence puts Cyprus in a prime position for future growth and competitiveness.

In terms of diversity, Cyprus is also ahead of the curve, with 44% of senior management roles held by women. This compares favorably to the EU’s average of just 23%.

However, despite these successes, Cypriot businesses face challenges. The survey identifies a shortage of skilled labor and limited access to financing as key obstacles, more pressing in Cyprus than across the EU as a whole.

Kyriacos Kakouris, EIB Vice-President, commented, “The EIB Investment Survey underscores the remarkable resilience and global outlook of Cypriot businesses. With investment levels above pre-pandemic figures and strong integration into global trade, Cyprus is well-positioned for sustainable growth. I am optimistic that these ongoing investments in innovation and modernization will propel the country’s long-term prosperity.”

The detailed report on Cyprus, along with insights from other EU nations, was released on 12 February 2025. The results will also inform the EIB’s annual Investment Report, which is due for release on 5 March 2025 at the EIB Group Forum in Luxembourg. This event will bring together industry leaders to discuss key topics such as decarbonization, AI, and the capital markets union under the theme “Investing in a More Sustainable and Secure Europe.”

Cyprus experienced notable economic growth in 2024, driven by increases in construction, manufacturing, tourism, and vehicle registrations. However, trade performance weakened, with both imports and exports declining. The latest data from CySTAT provides a comprehensive overview of these trends.

Key Figures

• Construction Growth: Building permits reached 1.72 million square meters (January–August 2024), an 18% increase compared to the same period in 2023.
• Manufacturing Expansion: Industrial production rose 1.8% from January to November 2024, reflecting steady growth in the sector.
• Increase in Vehicle Registrations: Total vehicle registrations grew 9.1%, reaching 49,616; Private saloon car registrations increased 11.2%, while light goods vehicle sales surged 36.1%.
• Consumer Price Index: Inflation remained moderate, with the CPI rising 1.8% for the year.
• Tourism Growth: Tourist arrivals reached 4,040,200, marking a 5.1% increase compared to 2023.
• Decline in Trade Performance: Imports fell 7%, totaling €12.26 billion; Exports declined 12.5%, amounting to €4.12 billion.

The data highlights strong domestic economic activity but also signals potential challenges in external trade.

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