The Cyprus Security and Exchange Commission is exploring options to take advantage of financial innovation while maintaining regulatory control over a dynamic, ever-evolving sector, blockchain and cryptocurrency.
Because of its strategic position, Cyprus has long been a unique financial center for Europe. In recent years, the Mediterranean nation has rapidly become a point of reference for the most advanced technologies.
This led to a number of startup blockchain wishing to open stores on the island.
Now, both the University of Nicosia and the Cyprus International Institute of Management host world-class seminars and conferences on topics related to digital currency and blockchain technology.
The Cyprus Security and Exchange Commission (CySEC) came into play, having recently set up an Innovation Hub focused on blockchain.
Companies that pass the application process have access to specialist skills and industry roundtables while maintaining the ability to communicate with CySEC while working on blockchain innovation issues.
President of CySEC Demetra Kalogerou imagines the Hub as a place where industries can easily dialogue with each other and with regulatory bodies, while helping CySEC to improve understanding of products and investment platforms that use DLT.
ANNOUNCEMENTS: CYSEC announces the launch of its Innovation Hub https://t.co/4nBHaj3tvr
– CySEC (@CySEC_official) 27 July 2018  Bullish On Blockchain?
In a recent interview with Finance Magnates President Kalogerou noted that CySEC was available to speak with experts to further understand the benefits and risks of blockchain when it comes to the financial market.
He also mentioned that CySEC is a member of a University College London project that is studying the possibility of using the blockchain for the automation of regulatory and compliance practices.
Overall, President Kalogerou underlined how "the time is ripe" for CySEC "to formalize our approach to innovation and ensure that there is no interruption at the expense of investor protection". President Kalogerou also stated that the regulatory agency has good working relationships with other European counterparts that have "readily applicable" knowledge  Examining the sides positives and negatives of innovation
Speaking specifically on the issue of the cryptocurrency regulation, President Kalogerou said that CySEC was trying to establish if more legislative requirements were needed to "ensure full investor protection".
potential actions in this area would be taken with care not to "act prematurely" and potentially "cause dislocations in a completely smooth functioning of our capital market."
So far, CySEC has issued several warnings to inform citizens about the potential risks associated with investment encryption, but President Kalogerou said the agency will not necessarily be rushed into regulating ICOs as they are a " set of products that has yet to be fully developed ".
What are your thoughts on the Cypriot embrace of the crypt? Do not hesitate to let us know in the comments below !
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