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Cyprus keen to adopt blockchain technology innovation
Increasing numbers of countries are adopting blockchain technology or establishing cryptocurrency regulation. A recent announcement by Demetra Kalogerou, head of the Cyprus financial regulatory authority CySEC adds to the list. In her announcement, Kalogerou revealed that the Cyprus government is implementing more innovation using new technologies.
According to Kalogerou, CySEC intends to develop a designated center for blockchain technology and virtual currencies:
The pace of change in financial services means that new products and services reach the market faster than ever before. Applying new technology to an already complex industry brings with it new supervisory challenges: digitization is no longer a compliment, but is fundamentally integrated into the way consumers and investors interact with banking, insurance, payment, asset and wealth management products.
The innovation center will also serve as a communication channel between regulatory authorities and innovators building blockchain solutions. It will help innovators acquire the necessary access to information so they can better understand how regulations are to be applied in new business models and products.
Fostering collaboration between regulators and innovators
For its part, this approach differs from traditional sandboxes. As an innovation center, the hub will seek to collaborate with both regulated and unregulated companies, allowing greater participation of more members and commercial sectors.
Kalogerou is of the opinion that cases for Distributed Ledger Technology (DLT) are not limited to cryptocurrencies. In collaboration with University College London through the BARAC project, CySEC is evaluating the use of DLT to automate regulatory and legislative practices.
While the country’s cryptocurrency regulations are still underway, it has been encouraging safe and informed investment practices for those entering the industry. It has been predicted that the country is on its way to being a favorite destination for the decentralized industry.