The scenario in Europe seems to be being dominated by countries like Germany, England and even Spain, but lesser-known countries are also working without their focus. For this reason, in this article we will present the case of a small country known as Cyprus, since it is working on the creation of a technological innovation center, focusing on the creation of disruptive media, especially those related to accounting.
Last month, the Cyprus Securities Commission (CySEC) announced the establishment of a new Innovation Hub, which will focus on the developments of Fintech and Regtech that are based on distributed accounting technology (DLT). The Innovation Hub is the latest in a series of initiatives launched across Europe to address the disruptive power of this new technological force.
To know about the project, you must first understand what DLT is, which consists of information stored in a public book whose integrity is protected thanks to digital technology. The most known version of DLT is the Blockchain technology.
The CySEC Innovation Center is scheduled to begin operations in September 2018. While specific eligibility criteria have not yet been announced, it is expected that companies wishing their specific sector or products participate in the Innovation Hub must submit an application official in the fall.
The way it will work is that, once a company has been selected, it will have access to specialized regulatory experts, as well as industrial and academic roundtables.
Most importantly, participants will be able to express their interests and concerns as CySEC works to improve their understanding of the risks and benefits of Blockchain-based innovations.
Demetra Kalogerou, president of CySEC, comments that:
"The establishment of the Innovation Hub is an important and exciting step for the supervision of CySEC of the new and innovative Fintech companies in Cyprus. By promoting closer ties with these emerging, but fast-growing industries, our goal is to better protect investors by fully understanding the risks and benefits that these new products bring. "
Innovation Hub will help improve the regulatory environment for both companies and businessmen willing to capitalize on the opportunities presented by DLT, Cyprus will compete with other southern European countries to attract the most promising innovators, competing with the big countries we mentioned to the start.