The Cyprus Securities and Exchange Commission (Cysec) has provided insights into its exploration of blockchain technology and hinted that live trials may already be in progress. Cysec is particularly interested in how distributed ledger technology, such as blockchain, can impact regulations and enhance its oversight of over-the-counter (OTC) markets.
The regulatory body has noted that licensed investment firms are already involved in trading digital currency derivatives, a development that is still in its early stages in U.S. markets and globally.
Cysec’s Chair, Demetra Kalogirou, stated, “We have already been using [blockchain] in Cyprus with investment services companies that carry out OTC [over-the-counter] transactions.” This suggests that blockchain technology is already being tested and implemented in certain aspects of the financial industry in Cyprus.
Furthermore, Kalogirou emphasized that Cysec is open to broader adoption of regulatory technology (RegTech) systems to enhance the compliance of supervised entities. The use of fintech solutions is seen as a means to maintain Cyprus’s position in providing financial services and products.