Cyprus drafts legislation to regulate artificial intelligence

The government of Cyprus has introduced draft bills to establish a national framework for the governance and oversight of artificial intelligence, ensuring full alignment with EU Regulation 2024/1689. The proposed legislation designates the Office of the Commissioner for Electronic Communications and Postal Regulation (OCECPR) as the primary authority responsible for supervising AI practices, implementing market surveillance, and serving as the single point of contact for compliance.

The bills include provisions for severe administrative penalties, with fines for prohibited AI practices reaching as high as €35 million in certain cases. To encourage innovation, the legislation also proposes the creation of an AI Regulatory Sandbox, allowing startups and researchers to test new applications in a controlled environment. The draft legislation is currently open for public consultation on the official e-consultation platform until September 16, 2026, where individuals and organizations are invited to submit their feedback before the government proceeds with final implementation.