5 November 2018
Invest Cyprus has signed a memorandum of understanding with VeChain Foundation, a Singapore-based entity which specialises in blockchain technology application, and the American organisation CREAM, which provides advisory services for projects and investments in the blockchain area.
The objective is to create a new framework of cooperation in the blockchain sector and the relevant applications of this technology in Cyprus. VeChain and CREAM will create a joint legal entity in the country, which will provide suggestions for policy reforms as well as for the creation of the necessary legal framework that will regulate the application of blockchain technology in Cyprus’ financial sector.
This collaboration represents a significant step towards the establishment of this technology on the island, with a view to reinforce the effectiveness and the transparency of the system and consequently, the competitiveness of Cyprus as a business and investment centre. The aim is to promote a framework of reforms which safeguards the transparency of transactions and which is fully in line with the relevant EU and international laws and regulations, pertaining to the prevention of money laundering (AML, KYC, etc.).
In a statement, the Chairman of Invest Cyprus, Michalis P. Michael, mentioned that the Organisation, as the competent institution for the promotion of investment into Cyprus and the government’s trusted advisor on related matters, considers that the abovementioned technology is revolutionary. “We are investing in the development of fintech and blockchain technologies and we plan to be at the forefront of this effort, so that we can facilitate investments and economic growth in Cyprus and the wider region”, he underlined.
The co-founder and CEO of VeChain, Sunny Lu, underlined that blockchain technology represents something bigger than a mere business activity. As she said, it is an indicator of the potential for global change and the shift towards societies that have trust, transparency and justice embedded at their core. The Managing Partner of CREAM, Jackson Fu, underlined that Cyprus represents an exceptional opportunity to make the principles of transparency and justice commonplace in the new digital era, adding that they will help create the appropriate conditions supported by law, so that ventures related to blockchain technology can find a favourable environment to create, develop and thrive.