The Cyprus Securities and Exchange Commission (CySEC) announced on Wednesday that it is currently seeking feedback to expand its innovation-related work. That is why the regulator launched cal for views on establishing a regulatory sandbox.
That said, the Cypriot authority would like to assess how innovators could test new products and services. Strong partnerships within the innovation system are critical. Regulated entities and other Fintech or Regtech companies, as well as professional associations from Cyprus and abroad, are among the stakeholders invited by CySEC to participate in this call for views,” CySEC noted.
Founded in October 2018, CySEC’s Innovation Hub has supported innovative businesses and participants in the market since its inception.
In addition to providing participants with a better understanding of applicable regulations and compliance requirements, the Innovation Hub has engaged with independent financial technology providers to meet CySEC’s commitment to protecting investors.
CySEC opened the registration to participate in the call for views on establishing a regulatory sandbox by 28 March via email.
“Digital technologies have re-shaped the landscape in which regulated entities operate. The challenge for regulators is to keep pace with these rapid changes so that the benefits provided by new and emerging technologies are unlocked, while ensuring that there are adequate systems, controls, policies and procedures in place to minimize the risks they present,” the Cypriot regulator added.
CySEC and ESMA
Recently, CySEC issued a statement about the European Securities and Markets Authority (ESMA) recommendations on cross-border activities supervision. In the area of cross-border activities, the EU supervisor reviewed the supervision of six National Competent Authorities (NCAs). They are the financial market regulators in the Netherlands, Germany, Czech Republic, Luxembourg, Cyprus and Malta.
Moreover, CySEC, which oversees the financial services companies in Cyprus, was provided with two recommendations by the EU regulator. NCAs are the first to receive ESMA’s Article 16 recommendations.
