CySEC (The Cyprus Securities and Exchange Commission), the regulatory body for financial service providers in Cyprus, has established an Innovation Hub, with the aim to address and explore the quickly evolving FinTech and RegTech developments.
The Innovation Hub will provide a platform where both supervised and non-supervised entities will have ongoing access to CySEC’s regulatory insights in order to better understand and implement their regulatory requirements. The aim is to create a better and more effective relationship between companies operating in this area and the way they are regulated.
The concept of the Innovation Hub encourages a two-way communication and information exchange between firms in the hub and the commission. Fintech companies will have access to specialized regulatory expertise, industry and academic roundtables provided by CySEC but at the same time they can provide CySEC with suggestions and information about the sector, thus helping CySEC to better understand the risks and benefits of new innovative investment products and platforms using Blockchain technology.
According to Demetra Kalogeriou, Chairwomen of CySEC “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,”
The Innovation Hub is expected to become operational in September 2018. Interested firms will be able to submit their application for approval through a designated page on CySEC’s website once the Innovation Hub becomes operational.