CYSEC announces launch of its innovation hub

The Cyprus Securities and Exchange Commission (the CySEC) has announced the establishment of its Innovation Hub, designed to address and explore the rise of FinTech and RegTech developments.

A CySEC statement said FinTech and RegTech are constantly, and quickly evolving and because of this, CySEC has decided to establish the Innovation Hub to foster a better, more effective relationship between entities operating in this area and the way they are regulated. The Innovation Hub will be a place where both supervised and non-supervised entities in innovative or new industries will have ongoing access to CySEC to best understand and implement their regulatory requirements.

CySEC’s initiative aims to create a platform for dialogue between innovative industries that operate in the FinTech and RegTech spaces, facilitating the exchange of information. CySEC encourages a two-way communication; FinTech firms will have access to specialised regulatory expertise, industry and academic roundtables – and 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.

Demetra Kalogerou, Chair of the CySEC, said that the establishment of the Innovation Hub marks an important and exciting step for CySEC’s supervision of new and innovative Fintech companies in Cyprus, adding 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. 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.

Source: Cyprus News Agency