The VeChain Foundation, which is a Singapore entity that operates a blockchain platform, has signed a memorandum of understanding with the government of Cyprus related to the use of blockchain technologies in the country. Signing the agreement on behalf of Cyrus was Invest Cyrpus, and also participating in the agreement was a U.S.-based blockchain startup called Cream. As part of the agreement, the three entities will cooperate on various countrywide financial applications that will use and promote blockchain technology. The agreement aims to both boost economic development on the island and influence government policy relating to the use of blockchains. Any reforms enacted in response to the agreement will fully comply will relevant regulations, such as E.U. laws, anti-money laundering laws and requirements related to know-your-customer rules. To facilitate their cooperation, the VeChain Foundation and Cream are expected to form a joint venture in the country. This new entity will be responsible for developing and implementing local blockchain solutions. Michalis P. Michael, who is the Chairman of Invest Cyprus, said in a statement that they view blockchain technology as something transformational as well as something that can improve the fiscal well being of the country. He further believes that these changes will occur on an infrastructural level. Michael went on to say that Invest Cyrpus was in fact investing in the development of both fintech and the blockchain on the island. They want the island to be at the forefront of these technologies, so as to foster investment and economic development not only there but in the region as well. In November of 2017, the Cyprus Securities and Exchange Commission announced that it wanted to use blockchain technology within its electronic payment system. It is doing this in cooperation with the Blockchain Technology for Algorithmic Regulation and Compliance Association. By integrating the use of a blockchain within the payment system the commission hopes to see various improvements, including a reduction of fees, faster transaction times and better payment transparency. A few months ago, VeChain developed a blockchain-based system meant to evaluate logistic suppliers in China. They did this in cooperation with DB Schenker.
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