On October 26, 2017, the Cyprus Securities and Exchange Commission (Cysec) announced that it will transition toward establishing blockchain as the cornerstone of its technology platform, facilitating digital payments.
Cysec acknowledges that other Cypriot licensed investment firms have made moves in the marketplace by trading derivatives through cryptocurrency. The head of Cysec, Demetra Kalogirou, said that the commission has issued a circular that outlines certain restrictions Cysec will impose on companies it supervises. Regarding the use of blockchain-based systems, she said, "We have already been using it in Cyprus with investment services companies that carry out OTC [over-the-counter] transactions."
Cysec is endeavoring to utilize blockchain as a means to revolutionize the manner in which assets are transferred over a foreign exchange. As a member of the European Securities and Markets Authority, Cysec participates in coordinated regulatory assessments of forthcoming technologies as they apply to financial instruments and services. Cysec also works with the UCL Blockchain Technology for Algorithmic Regulation and Compliance (Barac), furthering the study of ways FinTech can improve the industry.
Cysec is also examining legislation that applies to crowdfunding. "We think it's a product, a way to raise small funds to finance start-ups," said Kalogirou. "2018 is the time to put crowd funding in place. We have given it priority."