Evgenii Tiapkin: The delay in regulatory approvals hampers innovation and market growth

While acknowledging the reasons why Cyprus was chosen as the base from which to expand the firm’s global banking services, Evgenii Tiapkin, Executive Director of Freedom24, also warns that the current regulatory approval processes need to be streamlined if the island is to stay ahead of the game.

Recently speaking to GOLD magazine, among other things, he notes, "The delay in approvals hampers innovation and market growth, especially for companies like ours that are ready with the infrastructure, have the experience but are waiting on regulatory green lights."

The EU’s recent regulatory blitz to protect retail investors has kept everyone on their toes. Which recent regulation has been the biggest help to the industry and which one made you feel like squeezing a stress ball?

Since Freedom24 operates in many countries and adheres to a wider regulatory framework, being part of the Nasdaq-listed Freedom Holding Corp., we have significant experience in collaborating with various regulatory bodies in different countries.

The EU approach to investor protection – and increasingly that of CySEC – is one of the most proactive and highly tech-oriented. For instance, the centralised analysis of MiFID and sanction requirements for Cypus Investment Firms (CIFs), which are excellent frameworks that ensure transparency for all market participants, ensure that the industry is transparent and protects retail investors, fostering trust and encouraging responsible investing.

The continuous advancement of these regimes also benefits business, looking to regulate but not excessively limit innovation. On the other hand, while regulations are advanced, industry-friendly and customer-first, the processes of regulatory approvals are sometimes obsolete. For example, Freedom24 has been waiting for over three years for Electronic Money Institution (EMI) licensing in Cyprus, which is critical to expanding our services into key banking operations.

The delay in approvals hampers innovation and market growth, especially for companies like ours that are ready with the infrastructure, have the experience but are waiting on regulatory green lights.

With 253 CIFs now on CySEC’s books, Cyprus is looking like the EU’s CFD broker capital. How would you assess the local market’s growth and what more can be done to attract more firms to Cyprus?

Cyprus has become a hub for many FinTech companies, including brokerage firms like ourselves but also CFD and FX dealers. While we cannot comment on other market participants’ performance, we can certainly make a case for Freedom24. Thanks to the Cypriot business climate, CySEC’s innovation-friendly regulations, and smart talent migration policies, we are proud to be a 100% “made in Cyprus” product. Our highly advanced proprietary digital platform is used right across the European Union and beyond, having been established and developed here in Cyprus. That, I believe, can be seen as a testament to how far Cyprus has gone in operating business-focused policies.

Every industry has its roadblocks but what would you say are the biggest challenges ahead for the industry?

Staying ahead of technological developments while ensuring robust compliance is a top priority for any jurisdiction seeking to position itself as innovative and transparent, Cyprus is no exception. That said, I think our island is in a very competitive position to face this challenge. With an innovation-friendly business environment and advanced compliance landscape, Cyprus continues to attract top IT talent and investments. However, while growth in the FinTech space is evident, the country must also continue promoting its capabilities in broader financial services. Streamlining regulatory processes will attract more businesses. Faster regulatory approvals for EMIs, as mentioned earlier, would allow companies like Freedom24 to fully leverage Cyprus as a base from which to expand its banking services across the world.

Technological trends come and go but which upcoming tech do you think will truly be a game-changer for brokers and how?

Transformative technologies like AI will definitely revolutionise brokerage services by automating processes while delivering real-time insights, but we believe that the real game changers lie in the realm of client satisfaction, which is achieved by thorough platform and product design, strong security and extraordinary platform-client connection. At Freedom24, we’ve already built an advanced digital platform capable of integrating cutting edge technologies, yet we further enhance the user experience by constantly training our support teams and developing solid relations with EU and global partners.

This interview first appeared in the October edition of GOLD magazine. Click here to view it.