The Cyprus Securities and Exchange Commission (CySEC) is building up an innovation hub which aims at exploring the development in the business and specifically financial products utilizing the blockchain technology.
The goal of the new entity is to “cultivate a superior, more powerful connection between entities operating in this area and the way they are regulated”. It will give a place where both supervised and non-supervised entities in the new financial industry will approach CySEC to better comprehend and actualize regulatory requirements.
The regulator trusts that the new platform will encourage the exchange of data between the regulator and the fintech companies. The latter will have the capacity to get direct information from CySEC, which, on its part, will be in contact with the latest financial developments.
“The foundation of the Innovation Hub denotes a critical and energizing step for CySEC’s supervision of new and innovative Fintech organizations in Cyprus,” said Demetra Kalogerou, chair of the CySEC. He also added that in promoting closer ties with these juveniles yet quickly developing businesses, they plan to best secure investors by completely understanding the risks and advantages these new items bring.
It is expected that the new hub will turn out to be completely operational in September. Qualified organizations, keen on having their products analyzed by CySEC, can present their demand once the hub point launches. There will likewise be an assigned area on CySEC’s site. It will list the eligibility criteria for the candidates.
As reported by cryptovest, the new round for the regulatory sandbox of Financial Conduct Authority of the UK saw a total of 40% of the applicants being associated with blockchain. Тhe US Consumer Financial Protection Bureau (CFPB), has started a regulatory program to help fintech companies present new sorts of products and services, while the UAE saw the launch of its first sandbox-regulated crypto exchange Palmex.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]