The Innovation Hub established by the Central Bank of Cyprus (CBC) aims to set up a communication channel between the regulatory authority and financial market participants looking to adopt and promote the use of innovative technologies.
Fostering innovation and greater collaboration, enhancing the understanding of financial technology, and aiding the development of innovative products or services to ultimately benefit and enhance the financial system are some of the Innovation Hub’s objectives.
Through this channel, the CBC aims to support and encourage institutions to tackle regulatory and administrative obstacles when promoting innovative technologies by providing non-binding guidance on regulatory and supervisory prerequisites including any potential licensing requirements for innovative Fintech products or services.
Furthermore, the CBC’s objective is to keep abreast with the rapidly evolving technological developments in the financial markets in order to adequately position itself ahead of any issues related to the regulatory framework and ongoing supervision. As such, direct communication with various stakeholders will enable the CBC to stay up to date with emerging technologies and on how these technologies can be deployed, applied and promoted in the financial sector in a manageable manner, hence avoiding any risks that exceed acceptable levels.