CySEC launches its Regulatory Sandbox
On June 11th, 2024, the Cyprus Securities and Exchange Commission (CySEC) during an online event has successfully launched its Regulatory Sandbox. This initiative represents a crucial step forward in the development of financial (FinTech), regulatory (RegTech), and supervisory (SupTech) technologies in Cyprus.
The Regulatory Sandbox is a transformation of the Innovation Hub which was established in 2018. The Sandbox provides a transparent, controlled and temporary test environment for fintech start-ups and other entities that can test their products or services in real conditions under the regulator’s supervision.
CySEC aims to take a technologically neutral approach, identifying future trends, anticipating the potential risks to uphold investor protection, while maintaining the reliability of the Cyprus securities market and fostering its healthy growth.
Through this new milestone, CySEC supports prospective participants by working closely with them. CySEC will be providing constructive feedback regarding their innovative services or products related to financial activities, which are subject to CySEC’s supervision. Both authorised and unauthorised entities can apply in order to join this development, considering that the required eligibility criteria are satisfied.
From an operational perspective, the Sandbox has four phases:
- Application Phase,
- Preparation phase,
- Testing phase, and
- Evaluation/Exit phase.
Further, CySEC clarifies that the Sandbox does not provide any regulatory lenience to the prospective participants.
Please contact us at info@salvusfunds.com if you wish to learn more about the CySEC Regulatory Sandbox or require support with the completion of the application form.
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