CySEC’s 2025 Supervisory Priorities: AI, Fin-fluencers, And Compliance Mandates

by THEFUTURE.TEAM

February 13, 2025

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.

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Cyprus Posts €573.3M Fiscal Surplus In Q1 2026

by THEFUTURE.TEAM

May 4, 2026

Robust Fiscal Health Marks Strong Start To 2026

The Cyprus government has reported a fiscal surplus of €573.3 million in the first quarter of 2026, according to preliminary figures from the Cyprus Statistical Service. This healthy surplus, which accounts for 1.5% of the nation’s GDP, reflects a slight decrease from the €600.60 million surplus (1.6% of GDP) recorded in the corresponding period of 2025.

Revenue Growth: A Detailed Break Down

Total revenue surged by €194.00 million, or 5.4%, reaching €3.81 billion compared with €3.61 billion during the same quarter last year. Key components of this growth include:

Income and wealth taxes increased by €107.80 million (10.9%), amounting to €1.09 billion.
Social contributions rose by €86.00 million (7.3%) to €1.26 billion.
Taxes on production and imports grew by €31.50 million (2.9%), totaling €1.12 billion.
Net VAT revenue climbed by €34.60 million (4.8%), reaching €758.80 million.
Capital transfers, though modest, increased by €0.60 million (13.6%) to €5.00 million.

Expenditure Shifts And Sectoral Variances

Despite robust revenue, the governmental expenditure also increased notably by €221.30 million (7.3%) to €3.23 billion. Noteworthy changes include:

Intermediate consumption grew by €25.60 million (9.2%), reaching €303.70 million.
Compensation of employees, including social contributions and civil service pensions, rose by €23.00 million (2.4%) to €974.80 million.
Social benefits experienced an increase of €82.30 million (6.4%), climbing to €1.36 billion.
Interest payments surged by €29.90 million (41.1%), totaling €102.70 million.
Current transfers saw a significant uptick of €58.80 million (31.6%), reaching €245.00 million.
Other fiscal components, such as the capital account and gross capital formation, also recorded modest improvements.
However, some areas experienced a decline with property income falling by €3.30 million (17.5%) and revenue from the sale of goods and services dropping by €19.00 million (7.2%).
Subsidies were reduced by €3.90 million (19.5%), totaling €16.10 million compared to the previous period.

Strategic Implications For The Cypriot Economy

Overall, the data indicate concurrent growth in both revenue and expenditure during the quarter. Higher tax income and social contributions supported revenue performance, while increased spending on social benefits, transfers, and interest payments contributed to the rise in expenditure.

Outlook

As the fiscal year progresses, the balance between revenue growth and expenditure levels will remain central to maintaining a surplus. Future outcomes will depend on how these trends evolve across both sides of the budget.

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