The Cyprus Securities and Exchange Commission (CySEC) has established an Innovation Hub in order to address and explore fintech and regtech developments.
Expected to become operational in September, the Innovation Hub will provide a platform where the entities engaged in innovative technologies will have ongoing access to CySEC to best understand and implement their regulatory requirements. The objective is to foster a better, more effective relationship between entities operating in this area and the way they are regulated.
“The establishment of the Innovation Hub marks an important and exciting step for CySEC’s supervision of new and innovative Fintech companies in Cyprus. In promoting closer ties with these fledgling but fast-growing industries, we aim to best protect investors by fully understanding the risks and benefits these new products bring,” Demetra Kalogerou, Chair of the CySEC, said.
The initiative particularly aims to facilitate the exchange of information between innovative industries that operate in the FinTech and RegTech spaces. In addition, it will offer fintech firms access to specialised regulatory expertise, industry and academic roundtables. These entities will also have a “voice to improve CySEC’s understanding of the risks and benefits of new innovative investment products and platforms, using Distributed Ledger Technology (DLT) (e.g. Blockchain), enabling a more informed regulatory landscape,” CySEC said.
In its official release, CySEC said that eligible firms interested in having their sector or products included and examined by the Innovation Hub will be able to submit a request for further study once the hub is operational.