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.

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”.

This article was written by Tareq Sikder at www.financemagnates.com.Retail FXRead More

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