The Cyprus Securities and Exchange Commission (CySEC) has announced that it plans to integrate Blockchain or distributed ledger technology (DLT) to its electronic payment system as soon as possible.
The financial regulator of Cyprus has already signed a partnership with the Blockchain Technology for Algorithmic Regulation and Compliance Association (BARAC) to develop and introduce the Blockchain technology mechanism into the country's electronic payment system.
In its press statement, CySEC’s partner BARAC announced the various benefits of DLT to the financial industry like improving efficiency, boosting security and eliminating duplications in transactions.
“Blockchain Distributed Ledger Technologies (DLT) are of great interest to the financial industry because they have the potential to improve efficiency, augment security, eliminate duplications, simplify compliance and increase settlement speed, transparency and verifiability while preserving privacy and anonymity.”
CySEC’s support on Blockchain and initial coin offerings
CySEC is aggressively developing projects to explore the other potential benefits of Blockchain. The regulator is also participating in several international research projects on the technology as a member of the European Securities and Markets Authority (ESMA).
Moreover, CysSEC also has made known to the public its positive views on Blockchain and initial coin offerings (ICO). In her statement, the regulator’s director Demetra Kalogirou said that ICOs are a means to generate small funds to finance start-up companies, and they will focus on them in 2018.
“We think it’s product, a way to raise small funds to finance start-ups. . . . 2018 is the time to put crowdfunding in place. We have given a priority.”
With the launching of the DLT technology for CySEC electronic payment system users are expected to obtain several expected benefits like faster transactions, reduced fees and improved transparency of payments which has been an issue in the recent years.
The success of the various DLT projects in Cyprus is also expected to make the country an attractive location for financial technology (fintech) companies, as well as an ICO hub shortly.