Angelina Alyabyeva, Legal Associate, CYSEC AML Officer, Commercial Mediator, LLB(Hons), LLM
The Cyprus Securities and Exchange Commission (CySEC) successfully launched its Regulatory Sandbox on June 11, 2024, marking a significant step forward for financial technology (FinTech), regulatory technology (RegTech), and supervisory technology (SupTech) in Cyprus.
Dr. George Theocharides, Chairman of CySEC, highlighted the importance of the initiative: "The Regulatory Sandbox allows us to nurture responsible innovation within the financial services sector. Our goal is to support the development of cutting-edge solutions that leverage technological advancements while ensuring market integrity and investor protection."
Benefits of Participating in the Sandbox
The Sandbox offers a unique opportunity for businesses to test their innovative financial products and services in a controlled environment under CySEC's guidance. Participants will receive valuable feedback on how regulations apply to their solutions, helping them navigate the regulatory landscape.
Who Can Participate?
The CySEC Regulatory Sandbox welcomes both regulated and unregulated entities involved in financial technology innovation. Unregulated entities can participate through various means:
Obtaining CySEC authorization for the specific regulated services they intend to offer.
Testing solutions solely within their corporate group or utilizing other applicable exemptions.
Providing demo services.
Collaborating with a CySEC-regulated entity.
It's important to note that the Sandbox doesn't provide a lighter regulatory touch. Unregulated entities offering regulated services must obtain CySEC authorization before participating.
Eligibility Criteria
To be eligible for the Sandbox, your proposed innovative solution must:
Align with CySEC's supervisory scope.
Introduce genuine innovation in product, service, or business model.
Be ready for testing in a real-world environment.
Offer benefits to the financial services industry.
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