Focus on World Blockchain and Cryptocurrency Summit 2018 (slides)

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Blockchain activists are currently looking for ways to regulate Blockchain technologies in order to accelerate mass-adoption.

However, actors from the financial services industry have other priorities to focus on. They are currently facing bigger challenges such as the increasing number of upcoming regulations.

Banks, Insurance companies and Investment funds are putting all their efforts in order to be compliant with their regulatory landscape and should reinvent the way they were doing business.

Blockchain isn’t their priority for now… However it could be…

Just imagine a solution that can allow Banks, Insurance companies and Investment funds, to be compliant with regulations like GDPR, MiFID and AML and at the same time adopt Blockchain technology. This will offers so many advantages such as Back Office costs reduction, Automation, Better Data management & Quality systems, just to give an example.

We at Initio, went to Moscow to present our vision about How Blockchain can support businesses to be compliant with these regulations? We provided leadership insights and global best market practices to answer to this major question by focusing on the 3 hot topics in EU: GDPR, MiFID and AML. Find out more about this subject in our WBC Summit Moscow slides.

Summary

GDPR

  • GDPR is moving the private data ownership from Businesses to EU residents.
  • GDPR is pushing businesses to re-imagine their data management systems in order to take into account the new set of rights.
  • GDPR costs of non-compliance are high – 4% of the global turnover or up to EUR 20 million
  • Off-chain database combined with a Public Blockchain can automate data management & quality systems, decrease costs of compliance, increase data flow transparency and more …

MiFID

  • MiFID aims to bring back trust and increase transparency in the financial markets.
  • MiFID is moving certain transaction types from OTC (Over-the-Counter) market to Exchanges.
  • Estimated costs of USD 2.1 bn to comply with MiFID regulation (Source: MARKIT).
  • Pre/Post trade transparency & standardized OTC rules can be achieved by the mean of Blockchain technology.
  • Bank of Ireland came out with a PoC (Proof-of-Concept) to trace customer’s transactions through a one customer view.

AML

  • AML is pushing businesses to strategically calibrate their internal fraud detection systems between improving customers experience and increasing inconveniences.
  • Companies need to increase their understanding of the emerging payment technologies to better adapt their business to it.
  • Cryptocurrency trend is putting regulators and financial institutions under pressure.
  • Blockchain technology can increase transparency in financial transaction by the mean of a public distributed ledger.