The Cyprus Securities and Exchange Commission (“CySEC”) has announced that it is to establish an Innovation Hub, designed to address and explore the rise of FinTech and RegTech developments. The purpose of the Innovation Hub is to foster a better, more effective relationship with entities operating in these rapidly-evolving sectors and improve the way they are regulated. Through the Innovation Hub both regulated and non-regulated entities in innovative or new industries will have ongoing access to CySEC to best understand and implement their regulatory requirements.
The aim is to create 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 such as Blockchain, so as to develop a more informed and appropriate regulatory landscape.
The Innovation Hub is expected to become operational in September 2018. Eligibility criteria will be published on the CySEC website and eligible businesses interested in having their sector or products included and examined by the Innovation Hub will be able to submit a request for further study.