All Things Newz
Law \ Legal

Banks Increasingly Embracing Crypto As It Moves Into The Mainstream – Fin Tech



To print this article, all you need is to be registered or login on Mondaq.com.

I recently had the honour of being invited by AICB to speak at
the International Conference on Financial Crime and Terrorism
Financing. The event was themed “The New Frontier of
Compliance: Adapt, Transform, Collaborate” which sat perfectly
with the topic of my panel “Banking Meets Crypto”.
I’ve summarised our discussion based on these three components
below:

Adapt

The breadth and depth of regulations, regulatory approaches and
concerns of regulators vary across the world. Regulations are
adapting and evolving in relation to crypto and are looking to
strike a balance between investor protection on the one hand, and
not stifling innovation on the other.

Traditional financial institutions are also adapting as they
move away from seeing crypto firms as a threat towards exploration
of the different ways in which they can prepare to enter into
crypto services themselves whether it be to enabling their
customers to invest and trade in cryptocurrency, onboarding VASPs
or entering into partnerships with cryptos.

Transform

Transformation in the crypto world has been huge and continues
to transform at a rapid pace. Crypto firms themselves have matured
significantly over the last few years and are increasingly aligning
themselves to exist within the traditional financial
markets. 

Crypto firms are focusing more and more on their risk frameworks
and transforming their compliance programmes as they see the
benefits that strong and robust compliance and control frameworks
can provide including the ability to build trust with consumers,
investors and other key stakeholders.

Collaborate

Crypto is an emerging area and it is anticipated that it will
achieve wider adoption as has been seen with e-payment solutions.
As a result, we will see wider collaboration in a number of areas.
We will likely see more traditional bank and crypto firm tie ups as
traditional banks explore ways to enter into the crypto
market. 

Partnerships between banks and FinTechs is another example of
increasing collaboration. On the one-hand a collaboration with a
bank provides FinTechs a certain level of trust and credibility,
access to capital and additional knowledge and experience around
compliance and risk management. On the other hand banks can
leverage the technology of a FinTech to enhance customer experience
especially with regard to digital banking.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Technology from Singapore

The cyber lifecycle

Albrecht Burrows

Cyber & Privacy is an area that is constantly changing. 3 stages discussed: Preparation, Incident Response, & Maintenance.

NFTs, De-Fi, Metaverse – What’s Next?

TMT Law Practice

The pandemic led to the sports and gaming industry witnessing several (older ones grew by leaps and bounds and newer ones gained popularity) alternate sources of revenue, i.e., online fantasy sports…



Source link

Related posts

Illinois Amends Nurse Agency Licensing Act To Prohibit Noncompetes And Add New Reporting Requirements – Employee Benefits & Compensation

New Experimental Tax And Levy Payment Regime – Tax Authorities

Case Review: Federal Court of Australia upholds finding of contractor relationship – Contract of Employment