The Cyprus Securities and Exchange Commission (CySEC) is set to establish an innovation hub that will seek to address and explore the rise of fintech and regtech developments in the country.
It will also explore the developments in the industry and especially financial products leveraging the distributed ledger technology (DLT) and blockchain.
The innovation hub will aim to support a better, more effective relationship between entities operating in this area and the way they are regulated.
It will provide a platform where both supervised and non-supervised firms will be able to access to CySEC that will give them better understanding and ideas to implement their regulatory requirements.
CySEC noted that the new platform will also facilitate the exchange of information between the regulator and the fintech companies.
Additionally, fintech firms will be able to access to specialised regulatory expertise, industry and academic roundtables. They can also express their opinion to improve CySEC’s understanding of the risks and benefits of new innovative investment products and platforms.
CySEC chair Demetra Kalogerou said: “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 scheduled to commence operations from September this year.