The new technological hub will be used to manage the relationship between CySEC and the blockchain. CySEC’s goal is to establish a new hub for innovations to improve the existing cyber securities protocol, to make fintech solutions more compatible with Cyprus’s economic requirements.
CySEC, short for Cyprus Securities and Exchange Commission is aiming to create better relationships between blockchain technology companies and the commission. New financial products are being built to better utilize the distributed ledger or DLT.
A new platform being built by the commission is used to regulate information that is exchanges between companies. Cyprus’s economy is on the rise, with the need of cryptocurrency growing, a system must be set in place to help regulate its communication with the commission.
This is exactly why they are building the organization, to help reduce the risks while increasing the benefits for the users. Launch of the new platform is planned for September and any companies interested in determining if they can receive a spot should contact CySEC. The move is one of the biggest financial breakthroughs in recent history for the country.
Companies who are excepted are also required to submit products for examination by the commission. After a company is accepted, they will be given a section on the CySEC website. All companies must be verified and accepted by the company.
The commission is looking to improve blockchain communications for the entire industry, including those between countries offline. Nearly every country is increasing blockchain usage, with the UK for example, seeing a total of 40% of all businesses using blockchain who applied for to the countries Financial Conduct Authority.
Even the United States has stared new regulatory programs, with the CFPB in charge (Consumer, Financial Protection Bureau. Other countries building programs include several in Southeast Asia like Singapore and Hong Kong, the UAE has also launched a new crypto exchange as well.
What other countries do you know who are taking similar steps? Leave your answers in the comment section below.