Cyprus, VeChain Foundation and CREAM Sign Deal to Develop Blockchain, Fintech

The government of Cyprus has signed a deal with VeChain Foundation and CREAM to establish a framework of cooperation to develop blockchain technology and its application in financial services.

Cyprus is cooperating with Singapore blockchain technology firm VeChain Foundation, and US-based blockchain and crypto-economy strategic advisory and investment firm CREAM to establish a framework of cooperation in the areas of distributed ledger technology and relevant use cases.

Invest Cyprus, the government's dedicated partner responsible for attracting and facilitating Foreign Direct Investment (FDI) in key economic sectors, stated that it had signed a Memorandum of Understanding (MoU) with VeChain and CREAM to set Cyprus’ direction in the digital economy.

"The plans unfolding in Cyprus should open the world to what is achievable by investing in new technologies. Invest Cyprus, as a promoter of Cyprus Investment opportunities and advisor to the Government of Cyprus in the investments space, sees this technology as both transformational and fiscally restorative at the infrastructure level,” said Invest Cyprus chairman Michalis P. Michael. “We are investing in the development of the fintech, blockchain sector and we plan to be at the forefront so that we can facilitate investments and economic development in Cyprus and the region."

Under the MoU, CREAM and VeChain Foundation will create a joint entity in Cyprus to assist the government in developing and implement its native blockchain solutions. The proposed body will also advise Cyprus on matters of policy reforms to establish the country’s infrastructure for operations and financial services.

VeChain co-founder and CEO Sunny Lu added:

"Just as the blockchain technology represents something much bigger than business and money, this partnership represents the true competency for global change embedding trust, transparency, and fairness to the core of our society. Along with our partners, we are excited to showcase the true value of blockchain as supplemental technology and as an infrastructure to the world."

CREAM and VeChain will also assist in creating several investment strategy recommendations on the national level that involve the advancement of the digital ledger technology-powered economy. The cooperation must foster real-life usage of blockchain in investment, financial services, and economic reform in several aspects of the society, in the context of official government policy to push a new age of blockchain ecosystem in Cyprus.

In July, the country’s market regulator, the Cyprus Securities and Exchange Commission (CySEC), announced the creation of an innovation hub to explore developments in blockchain technology and its use in financial products. The center is aimed to “foster a better, more effective relationship between entities operating in this area and the way they are regulated.”