ESMA launches supervisory priority for AI and tokenisation — Cyprus Mail

In Cyprus, the European Securities and Markets Authority (ESMA) has launched a new European Union strategic supervisory priority in the field of digital innovation. The initiative is intended to help regulators implement new technologies while protecting investors and maintaining robust control mechanisms.

Focus on artificial intelligence

The new Union Strategic Supervisory Priority is intended to ensure that supervisory authorities have the appropriate knowledge and capacity to oversee the use of new technologies in the financial sector. As Cyprus Mail reports, at the first stage ESMA will work with national competent authorities, paying particular attention to the use of artificial intelligence and tokenisation by supervised companies.

The regulator plans to retain flexibility in order to respond to further technological changes in the EU financial sector. Among future challenges, ESMA also mentioned those related to advanced artificial intelligence models.

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Alongside cyber resilience

The digital innovation priority will operate alongside the existing strategic supervisory priority on cyber and operational resilience, which has been in effect since 2025. At the same time, ESMA is completing this year the strategic priority on ESG information disclosures, launched in 2023.

According to the regulator's assessment, work in this area has helped improve ESG disclosures, better explain sustainability information to investors, and provide higher-quality advice. At the same time, sustainability reporting and ESG remain a long-term area of work for regulators and investors.