And we’re kicking off the week with new analysis and opinion on fintech regulations, crypto, regtech and more. Dive into the latest fintech insights and have a great start of the week!
Duco: Why Good Data Management Is Key to Keeping Crypto Regulations at Bay (The FinTech Times)
Cryptocurrencies have entered the business landscape with a bang and have brought with them calls for increased regulation. While regulation of the industry seems inevitable, strong regulation could cause big problems for cryptocurrencies. Regulation has sparked real debate between players in the crypto landscape. Those who view it as necessary believe that without a clear set of guidelines to legitimise digital assets in the world, crypto firms will lack the certainty they require over whether they will be allowed to continue operating or not – a huge potential impediment to the future growth of this industry. Others, however, believe that a key role of cryptocurrency is to challenge established frameworks. Read more
Cryptocurrency exchanges: should we prioritise anonymity or security? (Fintech & Finance News)
Following the huge crypto price crash, the liquidation of crypto lending company Celsius, tens of billions lost through the TERRA LUNA network and, a possible incoming $3 billion worth of bitcoin from Mt. Gox Exchange flooding the market, the discussion around the stability of cryptocurrency exchanges couldn’t be more timely. In the last couple of years, cryptocurrency exchanges have been booming. As with the emergence of fiat currencies, cryptocurrencies need a good mixture of time, standardization, and trust to adapt and penetrate the world of traditional consumers, beyond the tech-minded crypto-enthusiasts. This mixture provides the stability that we see in fiat currency, or investments in stocks and shares. In this article ACI’s crypto expert, Francis Souza, speaks about the steps needed to make them stable and secure. Read more
5 elements that make an effective compliance program (FinTech Global)
With regulations continuously changing, there are always new challenges to overcome. To help firms stay on top, Diligent has outlined the five elements that make an effective compliance program. It stated that by implementing key elements of an effective program, a company can be equipped for any changes to regulation. Firms first need to strengthen their approach to compliance. Firstly, a company should stress good governance from the top down .Secondly, it said firms should communicate that while there is a compliance team, governance is not exclusively their responsibility. Compliance is everyone’s responsibility, with internal audit, general counsel and company secretaries, risk officers, marketing and sales teams and other areas of the business all having a role. Read more
Why Fintechs should welcome a pragmatic approach to privacy (FinTech Magazine)
You may have missed the Information Commissioner’s big new announcement last week. But while the launch of the ICO’s new vision fell below the radar of most Fleet Street hacks, it did contain plenty of food for thought for the FinTech sector. The good news is… it’s mainly good news. Sector-specific support plans to save businesses money, a pledge to make compliance simpler to achieve, plus the launch of innovation aids were all among the announcements made at Woburn House. And while the hand-picked audience of 100+ may have contained some sceptics, it was quietly impressive way the regulator plans to tailor its approach to provide protection and certainty to both people and businesses. Read more
How to choose the best crypto-friendly bank for business (FinTech Magazine)
The global market appetite for cryptocurrencies continues to grow around the world. Triple A, a cryptocurrency payment company, reported in 2021, that India had the highest number of cryptocurrency owners surpassing more than 100 million individuals, while Ukraine had the highest percentage of owners based on population, representing 12.73%. With more than 300 million cryptocurrency users worldwide and a host of other digital assets used in investments, payments, and transactional purposes, institutions must carefully conduct their due diligence to identify banking institutions that can support their operations. This goes beyond evaluating and determining which of a select group of banks can support current operations and should include evaluating available technology and personal service to support scalability and agility to meet future demands. Read more
Composing the future of banks (Fintech Futures)
BIAN is a way of defining the composable modules. One thing to add though is that BIAN represents the business model of banking first and then how it can be supported by technology. It’s not about the modularisation of software components that can be easily interchanged, it is very much about creating flexibility and agility in banking by creating a canonical representation of the business of banking. The biggest challenge for any bank is how do they reach such a vision of composable banking when over decades of investment in technology automation they have hundreds or thousands of systems, with some sharing data through extraction, some integrated through technical bridges and maybe a few more modern solutions through APIs? Integration is one of the biggest headaches a bank has, so the idea of composable banking would be simpler if every system had APIs, but that just isn’t the real world. Read more
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