Decentralized Venture Ecosystem

5 ways regulation can be a competitive advantage to British business

Management Today UK | by Conrad Thompson | Sep 21, 2018

regulation as a competitive adv - 5 ways regulation can be a competitive advantage to British businessBrexit is an opportunity for regulators to enable innovation while protecting wider society, says PA Consulting's Conrad Thompson.

The UK has a well-established and well-respected system of regulation, which the majority (83%) of the public see as good for society and for business. But without action, this won’t last long. Brexit is looming on the horizon, with huge implications for our regulatory framework. Firms in all industries need to focus on innovation to keep up with, let alone stay ahead of, new customer behaviours and the increasing pace of technological change.

Regulators will have a growing role, particularly in a post-Brexit world, to remove the barriers to innovation, for example by minimising the hoops organisations need to jump through to release new products or services. There is an opportunity here for the UK’s regulators to be a source of competitive advantage for British businesses, but they will need to understand how they can do this whilst still delivering on - and keeping within - their statutory duty to protect society.

Co-create

Regulators must play an active role in promoting innovation. This starts with regulators and regulated companies working more closely together, to ensure that the rules reflect the practicalities of running a fast moving business.

There are some examples where this is already happening, such as through the Ofgem and FCA sandboxes, which allow unauthorised companies to test out new products and services in an controlled environment. Sixty firms have been through the FCA’s regulatory sandbox, resulting in material changes to the data they ask for and the way they ask for it, as well as helping new entrants to attain banking licences far faster. This has already proven to be an advantage for the UK’s burgeoning fintech scene.

See:  Regulating disruption

Lack of money is no excuse for regulators not pursuing these kinds of creative approaches. The Department for Business, Energy and Industrial Strategy has recently launched its Regulator Pioneer Fund which will see it invest up to £10m over two years to support regulators with initiatives that help businesses bring innovative products and services to market. This is explicitly designed to ensure regulation does not get in the way of new approaches and business models.

Empower the consumer

Regulators’ primary responsibility is to protect society from the excesses of the free market. But this too can be a competitive advantage to the UK’s firms. Aside from acting as a badge of quality in international markets, effective regulation can help build consumer trust, especially when it involves providing the public with clear and reliable information. This, in turn, can help businesses retain and recruit customers.

Just think how Ofsted’s assessment of whether schools range from outstanding to inadequate has helped parents make far more informed choices and driven poorer performing schools to improve. Imagine doing that in other areas such as banking or healthcare – and really promoting those assessments so more consumers are aware of and use them.

Play to Britain’s strengths

Clearly in the short term businesses need certainty around Brexit. But looking further ahead, Brexit gives UK regulators the opportunity to create world-leading regulatory frameworks that set standards globally and play to the strengths of British businesses.

The UK will be able to implement regulatory frameworks that amplify areas where UK businesses have competitive advantage and the regulatory regimes can be a differentiator for the UK’s products and services. For example, the Civil Aviation Authority is looking to establish a clearer framework for how organisations can adopt new technologies, which will help British businesses be at the forefront of industry innovations such as drone taxis.

See:  Fintech: UK Financial Conduct Authority Initiates Consultation on Global Financial Innovation, Partners with 12 International Regulators

Cross traditional boundaries

Regulators need to work across traditional sector boundaries to maximise innovation opportunities.  Whilst UK regulators within the same industry frequently co-operate (for example the FCA, the Prudential Regulation Authority, the Pensions Regulator and others in the financial sector), they should also be looking to innovate further by learning from one another and by introducing ideas from other sectors. For example the Gambling Commission, in considering the future re-tendering of the National Lottery, adopted a scenario planning technique more typical in the energy sector to help potential suppliers consider different future worlds for how gambling might evolve.

Regulators are also increasingly recognising the need to encourage innovation on a more global basis, particularly for services that apply across borders. For example, the FCA has collaborated with 11 regulatory bodies from Europe, the Far East and the US on the creation of a Global Financial Innovation Network.

Continue to the full article --> here


NCFA Jan 2018 resize - 5 ways regulation can be a competitive advantage to British business The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - 5 ways regulation can be a competitive advantage to British businessFF Logo 400 v3 - 5 ways regulation can be a competitive advantage to British businesscommunity social impact - 5 ways regulation can be a competitive advantage to British business

New York Times | Shira Ovide | Jan 18, 2022 Microsoft is making a big bet on video games, and even if you’re like me and don’t really play them, it’s worth taking notice. Microsoft said on Tuesday that it would buy Activision Blizzard, which makes video games including Candy Crush and Call of Duty. Microsoft will pay close to $70 billion for the game maker, a lot of money even for such a rich company. Activision slots into Microsoft’s other video game businesses, including the Xbox game console and video game makers like Halo and Minecraft. See:  Inside the metaverse economy, jobs and infrastructure projects are becoming real But Microsoft’s acquisition also shows that video games are not merely entertainment anymore. They have become weapons that today’s technology titans wield to try to shape our future in their preferred direction. I’m talking about the “metaverse,” the terrible shorthand that technologists have adopted for a broad vision of a future internet that will further blur the lines between online life and real life, and between people and computers. The metaverse is hard to define. (We could just call it the next phase of the internet, but I guess that’s too ...
Read More
microsoft buys activision - 5 ways regulation can be a competitive advantage to British business
Cato Institute | Norbert Michel | Jan 14, 2022 Emmer introduced legislation to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) for use by individuals. This week Rep. Tom Emmer (MN–R) introduced legislation to prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) for use by individuals. A CBDC of this nature goes by several names, but it is just a private account for individual customers at the central bank, an institution that historically serves commercial banks. In his press release, Emmer noted that “to maintain the dollar’s status as the world’s reserve currency in a digital age, it is important that the United States lead with a posture that prioritizes innovation and does not aim to compete with the private sector.” Emmer deserves high praise for taking such a principled stand for the private sector over further government centralization and control. See:  ‘Ready to Go’: Powell Says Fed Report on Crypto and CBDCs will drop in the coming weeks He clearly understands what’s at stake with a CBDC, and Americans can only hope that many other members of Congress share his sympathies. With any luck, the Federal Reserve researchers working on the Fed’s upcoming CBDC report — one that could be released ...
Read More
CBDCs - 5 ways regulation can be a competitive advantage to British business
Crowdfund Insider | JD Alois | Jan 12, 2022 Seedrs, a leading UK-based securities crowdfunding platform that is merging with Republic, has provided a retrospective of 2021 performance. According to Seedrs, 2021 was a year that delivered record-level funding. The top-line numbers are as follows: £696 million invested into securities offerings 310 funded deals 102 securities offerings of over £1 million A 90% funding success rate 12 portfolio companies delivered profitable company-level exits in 2021. See:  $100M Crowdfunding Deal: Republic acquires the UK’s Seedrs for European expansion The largest private offerings listed on Seedrs include: Lick – £15 million – most funded Ziglu – £7.326 million or 724% as the highest percentage funded Chapel Down – £6.95 million involving 4172 investors – the most investors of any securities offering Seedrs not only facilitates capital formation in the UK but is active in continental Europe having funded 33 EU businesses during 2021. Investors harken from 74 different countries. A key feature of the Seedrs platform is its successful secondary market – a service that has been years in the making as private securities trading is a challenging task. Seedrs reports that during 2021 trading increased by 60% versus 2020 with £8 ...
Read More
Seedrs office - 5 ways regulation can be a competitive advantage to British business
FinBold | Jordan Major  | Jan 16, 2022 The Bitcoin mining sector has piqued the interest of several countries over the last year, and it appears that the United States government is starting to become interested in this market. As a result, a hearing has been scheduled in the US to explore the ramifications of the energy consumption incurred by cryptocurrency mining operations. Indeed the Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce will conduct a public hearing on the subject next Thursday, January 20, according to the House Committee. “The Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce will hold a hybrid hearing that includes both in-person and remote attendance on Thursday, January 20, 2022, at 10:30 a.m.” See:  Landmark Jury Verdict Finds Digital-Asset Products Linked to Cryptocurrency Mining Are Not Securities The investigation is titled “Clearing Cryptocurrency: The Energy Implications of Blockchains,” and in particular, the Subcommittee is interested in learning about the energy consumption of blockchains, with the premise that they may create environmental concerns in the future. On the scheduled day, the hybrid hearing will also live stream on YouTube. Congress’ energy subcommittee to discuss cryptocurrency Bitcoin has ...
Read More
US government - 5 ways regulation can be a competitive advantage to British business
McKinsey Digital | Matteo Biondi, Anna Heid, Nicolaus Henke, Niko Mohr, Lorenzo Pautasso, Ivan Ostojic, Linde Wester, and Rodney Zemmel | Dec 14, 2021 A burgeoning quantum-computing ecosystem and emerging business use cases promise to create significant value for industries—if executives prepare now. Accelerating advances in quantum computing are serving as powerful reminders that the technology is rapidly advancing toward commercial viability. In just the past few months, for example, a research center in Japan announced a breakthrough in entangling qubits (the basic unit of information in quantum, akin to bits in conventional computers) that could improve error correction in quantum systems and potentially make large-scale quantum computers possible. And one company in Australia has developed software that has shown in experiments to improve the performance of any quantum-computing hardware. As breakthroughs accelerate, investment dollars are pouring in, and quantum-computing start-ups are proliferating. Major technology companies continue to develop their quantum capabilities as well: companies such as Alibaba, Amazon, IBM, Google, and Microsoft have already launched commercial quantum-computing cloud services. Of course, all this activity does not necessarily translate into commercial results. While quantum computing promises to help businesses solve problems that are beyond the reach and speed of conventional ...
Read More
harvard physicists - 5 ways regulation can be a competitive advantage to British business
Moxie Marlinspike blog | Jan 7, 2022 Despite considering myself a cryptographer, I have not found myself particularly drawn to “crypto.” I don’t think I’ve ever actually said the words “get off my lawn,” but I’m much more likely to click on Pepperidge Farm Remembers flavored memes about how “crypto” used to mean “cryptography” than I am the latest NFT drop. Also – cards on the table here – I don’t share the same generational excitement for moving all aspects of life into an instrumented economy. Even strictly on the technological level, though, I haven’t yet managed to become a believer. So given all of the recent attention into what is now being called web3, I decided to explore some of what has been happening in that space more thoroughly to see what I may be missing. How I think about 1 and 2 web3 is a somewhat ambiguous term, which makes it difficult to rigorously evaluate what the ambitions for web3 should be, but the general thesis seems to be that web1 was decentralized, web2 centralized everything into platforms, and that web3 will decentralize everything again. web3 should give us the richness of web2, but decentralized. See:  Inside the ...
Read More
Moxie marlinspike blog - 5 ways regulation can be a competitive advantage to British business
CNBC | Cameron Costa | Jan 15, 2022 If 2021's word of the year was "NFT," Avery Akkineni says 2022's will be "Web 3.0." This year, digital assets built on the blockchain will likely continue to expand well beyond the music and art industries. Luxury fashion brand Balenciaga has already teamed up with Fortnite to deliver to users designer "skins" to wear inside the game. Gucci has done the same with Roblox, and Louis Vuitton and Ralph Lauren have launched their own Roblox experiences. Brian Trunzo, metaverse Lead at Polygon Studios, which focuses on gaming, NFTs and Web3 efforts linked to the polygon digital currency and ethereum blockchain network, says nimble, smart streetwear brands are already in the space as well. "The players have finally taken the field, and the game is about to truly start," Trunzo said. More direct commercialization strategies could be coming. Cathy Hackl, CEO and chief metaverse officer for the Futures Intelligence Group, a metaverse consultant, points out that for luxury brands in particular, the metaverse could be an access point for a secondary market. See:  Bracing For Change In The Era Of The Augmented Workforce "When someone sells their Birkin bag on The RealReal, Hermes ...
Read More
metaverse world - 5 ways regulation can be a competitive advantage to British business
Fortune | Grady McGregor | Jan 10, 2022 New estimates claim the CEO of cryptocurrency exchange Binance, Changpeng Zhao, is the world’s richest crypto billionaire, with a net worth rivaling the sums amassed by tech billionaires Elon Musk, Jeff Bezos, Bill Gates, and Mark Zuckerberg. On Monday, Bloomberg calculated that Zhao’s net worth is $96 billion, which would make him the 11th richest person in the world. On the Bloomberg Billionaires Index, Zhao, known as “CZ” in crypto circles, is now sandwiched between No. 12, Mukesh Ambani, CEO of Indian conglomerate Reliance Industries, and No. 10, Larry Ellison, cofounder of Oracle, who’s worth an estimated $107 billion. See:  Binance hires ex-regulators and incorporates in Alberta to charter compliance course in Canada OSC to Binance Investors ‘Not So Fast’: Binance Canada Receives License to Operate as Money Service Business Bloomberg says its estimate is based on Zhao’s stake in Binance, reporting that the exchange generated upwards of $20 billion in revenue in 2021 and that Zhao owns 90% of Binance’s shares, according to a review of the firm’s regulatory filings. Zhao’s net worth may be even higher than $96 billion since Bloomberg did not account for Zhao’s personal holdings of Bitcoin ...
Read More
CZ binance wealth - 5 ways regulation can be a competitive advantage to British business
Fintech Confidential Issue 4 | Éliane Ubalijoro, PhD | Jan 13, 2022 A year and a half into the COVID-19 pandemic, the global economy is looking cautiously at recovery. According to the World Bank, growth will be very uneven given surges of virus variants, patchy vaccination rates, and withdrawal of government support measures, so global GDP in 2021 is still expected to be 3.2% below pre-pandemic projections. To support a more equitable and sustainable recovery, it is imperative that our economic systems recognize how they need to be underpinned by "flourishing communities, strong and resilient social institutions, thriving natural ecosystems and a stable climate” as the Capitals Coalition  articulates. As a member of their supervisory board, I truly believe that we must empower organizations to understand that their success and the success of the global economy more broadly is fundamentally dependent on natural, social, and human capital, in addition to produced capital. We must work to curb greenhouse gas emissions in all the ways we produce goods and services, whether it is how we impact, air quality, energy management, water quality, how we reduce waste streams and maximize circular economies to minimize our ecological footprint. We must ask ourselves how ...
Read More
liane Ubalijoro alternative forms of capitalare key to sustainability - 5 ways regulation can be a competitive advantage to British business
Cointelegraph Magazine | Elias Ahonen  | Jan 12, 202 As Ethereum gas prices rise, the chain that inspired Web3 is becoming gentrified, with high transaction costs pushing less wealthy users onto competing blockchains or scaling solutions. This means that many use cases are becoming unfeasible in the proverbial layer-one downtown, and suburban neighborhoods are being developed to allow for a cost-effective layer-two blockchain experience. Since getting acquainted with Polygon around the time of its launch in late 2019, Sameep Singhania has been an avid supporter of projects built on the protocol. In 2021, he created QuickSwap, a decentralized exchange (DEX) serving the needs of the budding Polygon ecosystem. A DEX for Polygon After working on perhaps dozens of projects on Polygon from 2019 onward, Singhania “realized that to grow the Polygon ecosystem, we need a DEX.” See:  Single largest Ethereum contract worth $33.5 billion ‘trapped’ This was because while “99% of blockchain projects have a token,” listings on popular exchanges are not easy to arrange, and many users are not willing to create an account at an obscure exchange just to trade a particular token that is not listed elsewhere. A DEX can function as the central market square of ...
Read More
Cointelegraph Polygon DEX quickswap - 5 ways regulation can be a competitive advantage to British business

 

Leave a Reply

Your email address will not be published. Required fields are marked *