The eligibility criteria include the extent to which a firm’s products are new to the market and how they relate to the financial services supervised by CySEC.
More than two months after the Cyprus Securities and Exchange Commission (CySEC) unveiled the pending launch of its Innovation Hub, the program starts accepting applicants.
The CySEC said today that, in order for interested parties to request support, they need to complete the Innovation Hub Submission Form electronically and submit it in word format via email at firstname.lastname@example.org.
A dedicated section on CySEC’s website provides detailed information to those interested in how the Innovation Hub functions. It elaborates on the eligibility criteria for prospective participants. These criteria include:
- The extent to which a firm’s products or services are new to the market, and the degree to which these products and services are covered by existing regulation. CySEC will prioritise truly innovative businesses.
- Τhe innovation and emerging technology provided by the business is directly related to the financial services supervised under CySEC’s remit; namely the securities and investment markets.
- The interested party is already underway in determining its compliance with the regulatory framework and/or aspects of the legislation not currently in place for its business model to advance.
- A deep-rooted commitment to investor protection and a strong ethical culture of compliance.
Among innovation initiatives, CySEC mentions its participation in the Blockchain Technology for Algorithmic Regulation and Compliance (BARAC) project, which is run by the University College London (UCL) Blockchain Technologies. It focuses on examining the feasibility of using blockchain technology for automating regulation and compliance.
CySEC’s Innovation Hub aims to create a platform for dialogue between innovative industries that operate in the FinTech and RegTech spaces, facilitating the exchange of information. 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), enabling a more informed regulatory landscape.