Category Archives: Cyber Security, Hack and Fraud Alerts

Coinsquare to pay $2.2 million in OSC settlement

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

Advisor's Edge | James Langton | Jul 21, 2020

Bitcoin - Coinsquare to pay $2.2 million in OSC settlementIt’s the regulator’s first enforcement case against a crypto trading platform

In a settlement that aims a shot across the bow of the fledgling crypto asset sector and mounts its first defence of whistleblowers, the Ontario Securities Commission (OSC) sanctioned crypto trading platform Coinsquare Ltd. and several executives.

The regulator found the firm faked its trading volume, lied about it, and retaliated against an internal whistleblower. Following a virtual hearing, an OSC hearing panel approved a settlement with Coinsquare and its executives that includes over $2.2 million in sanctions and costs, as well as industry bans.

The sanctions follow admissions that the firm violated securities rules by reporting inflated trading volume, which was generated by an internal algorithm that produced 840,000 wash trades (involving 590,000 Bitcoins), representing 90% of the platform’s reported trading activity.

The OSC also found the firm made misleading statements about the phony volume when concerns were raised by clients on Reddit, and that Coinsquare retaliated against an internal whistleblower who brought concerns about the suspect volume to senior management. The whistleblower was terminated by the company.

See:  Wealthsimple to expand into crypto trading

In settling the case, the firm admitted to engaging in market manipulation by reporting inflated trading volumes, misleading clients about the suspect volume and retaliating against a whistleblower.

CEO Cole Diamond and founder, president and CTO Virgile Rostand admitted to facilitating the firm’s breaches of Ontario securities law, while former chief compliance officer (CCO) Felix Mazer admitted to failing to fulfil his role as CCO.

Under the settlement, Diamond and Rostand both agreed to resign from the firm. Diamond paid a $1 million penalty and Rostand paid $900,000.

Coinsquare, Diamond and Rostand agreed to pay $300,000 in costs.

“Being an innovator in our capital markets is not a free pass to disregard Ontario securities law,” Kehoe said in a statement following today’s hearing.  “All market participants – including those in novel industries – must act honestly and responsibly,” he added.

The two executives are also banned from registration for three years, and they are both banned from participating in the management of Coinsquare for three years.

Additionally, Diamond received a three-year director and officer (D&O) ban, and Rostand agreed to a two-year D&O ban (although there’s a carve-out in the deal that will allow them to be involved with a Coinsquare affiliate that’s not a market participant after one year).

Mazer is also banned for one year and agreed to pay $50,000 for his role in the misconduct.

See:  An IOSCO report highlights crypto trading issues, but stops short of setting standards

“Despite several employees raising concerns about inflated trading volumes, Coinsquare not only stuck with the practice, but lied to investors about it and retaliated against a whistleblower,” said Jeff Kehoe, director of enforcement at the OSC, in a statement.

As part of the settlement, Coinsquare and its subsidiary, Coinsquare Capital Markets Ltd., which was seeking registration with the OSC and the Investment Industry Regulatory Organization of Canada (IIROC), are also required to “implement substantial corporate governance improvements” before it can continue to pursue possible registration with the OSC and IIROC.

These improvements include establishing independent boards of directors, appointing new CEOs and CCOs, creating an internal whistleblower program, and implementing policies and procedures to ensure compliance.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Coinsquare to pay $2.2 million in OSC settlement 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 - Coinsquare to pay $2.2 million in OSC settlementFF Logo 400 v3 - Coinsquare to pay $2.2 million in OSC settlementcommunity social impact - Coinsquare to pay $2.2 million in OSC settlement

JOIN US THUR, AUGUST 13 CURRENCY WARS, DIGITAL ASSETS, THE RISE OF DEFI WEEK!


GET TICKETS NOW
More Info


Week 6 Currency Wars Digital Assets and DeFi resize - Coinsquare to pay $2.2 million in OSC settlement



NCFA COVID 19 letter to government to support Fintechs and SMEs - Coinsquare to pay $2.2 million in OSC settlement

NCFA Newsletter subscribe600 - Coinsquare to pay $2.2 million in OSC settlement

 

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

Fintech & Cybersecurity: Key Risks and Solutions

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

Guest Post | July 21, 2020

Cybersecurity risks and solutions - Coinsquare to pay $2.2 million in OSC settlementFintech companies have dramatically improved financial services worldwide. The sum of innovative technologies is offering groundbreaking banking and financial services to both consumers and B2B clients. In terms of funding, payments, investments, and other processes, the financial sector has never been more streamlined.

But in line with increased performance, there is increased risk. The fintech industry is on a quest to ensure optimal cybersecurity and safeguard customers’ financial and personal data; as well it should because it seems every month we hear about another major data breach.

See:  Cybercrime and Covid-19: Preying on Fear

While we may pat ourselves on the bank and point to the positive aspects of fintech and open banking, we shouldn’t lose sight of the fact that critical technical dependencies on third parties in the integrated fintech ecosystem have made it uniquely vulnerable to several cybersecurity risks.

Here we shed light on some of those risks and go over a few actionable solutions to improve the landscape.

 

Key Fintech Cybersecurity Risks

Malware Attacks and Hacking

If you want to categorize cybersecurity risks in the fintech industry, malware attacks and hacking are among the most prominent. In one key example of the latter, bad actors are launching sophisticated cyberattacks on SWIFT infrastructure, a financial telecommunication system used worldwide by banks and other financial institutions to transfer transaction-related information.

The “insane” (as Wired termed it) $81 million bank heist incident in Bangladesh incident took place because of exploitable vulnerabilities that are prevalent in many banks. A similar attack is probably a matter of time as the risk here is directly related to financial operations such as domestic and international funds transfers.

 

Lack of Regulatory Compliance

The rapid rise of fintech companies is associated with an overall transformation in information technology and related fields. Legacy banking regulations don’t cover technological risks in a comprehensive manner, which means the fintech industry is largely unregulated.

Regulatory bodies are catching up but there is a lot left to cover to minimize the risk. In the meantime, a lack of regtech means organizations at risk of breaches include both those handling financial and personal data and peer to peer loan data.

 

Digital Identity Theft

In the fintech ecosystem, most applications and financial services are web-based with iOS or Android mobile devices at the front end. Fintech technology uses one-time passwords (OTPs) as security codes to verify customer authenticity during online marketplace transactions. Unfortunately, these OTPs are easily accessible by cyber attackers and critical information is easily traceable by bad actors. Faulty fintech software solutions are mostly liable in these cases.

See:  Comparison of UK banking providers’ fraud controls

The risk of digital identity theft is directly related to online marketplaces. When a customer shares sensitive financial and personal information on online platforms or in e-banking solutions, this information is far too easy to garner.

 

A Few Solutions

Reputable Third-Party Service Providers

The fintech industry is largely dependent on various third-party service providers, from malware and cyberattack protection, cloud computing, to digital data services, to name just a few. Many IT risks arise due to weak software management by third-party service providers. Always go for reputable providers for fintech solutions as it ensures greater safety and security across the board.

 

Ensure Regulatory Compliance

Regulatory compliance for the fintech industry is still scant, particularly when compared to the size of the landscape. However, applying what compliance is available should save fintech companies from cross-border legal issues, potential loss of reputation, and the often hefty regulatory fines imposed by jurisdictional authorities. At the same time, regulators should review regulation perimeters routinely. Some key regulations to follow include:

  • GDPR — Worldwise
  • PSD2 — European Union
  • eIDAS — European Union
  • PCI DSS — Worldwide
  • NCUA — Americas

 

Robust E-banking Security Architecture

In order to maintain customers’ privacy on web applications, online marketplaces, and when using e-banking solutions, banks and financial institutions should periodically update their security framework and architecture. This will mitigate some of the risk factors and pave the way for effective fintech implementation.

In addition, the industry as a whole needs to do a bit more to protect application users on-site. Companies can’t always rely on users to download a secure and effective VPN so apps should have VPN protection in place to secure connections and prevent unauthorized access. System firewalls, antivirus, and other steps are fundamental to stopping breaches.

The bottom line is that fintech will never be free from security vulnerabilities. However, by fostering appropriate security measures the industry can stay strong.

 


NCFA Jan 2018 resize - Coinsquare to pay $2.2 million in OSC settlement 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 - Coinsquare to pay $2.2 million in OSC settlementFF Logo 400 v3 - Coinsquare to pay $2.2 million in OSC settlementcommunity social impact - Coinsquare to pay $2.2 million in OSC settlement

JOIN US THUR, AUGUST 13 CURRENCY WARS, DIGITAL ASSETS, THE RISE OF DEFI WEEK!


GET TICKETS NOW
More Info


Week 6 Currency Wars Digital Assets and DeFi resize - Coinsquare to pay $2.2 million in OSC settlement



NCFA COVID 19 letter to government to support Fintechs and SMEs - Coinsquare to pay $2.2 million in OSC settlement

NCFA Newsletter subscribe600 - Coinsquare to pay $2.2 million in OSC settlement

 

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

QuadrigaCX: A Review by Staff of the Ontario Securities Commission

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

OSC | Staff | Jun 11, 2020

QuadricaCX OSC review - Coinsquare to pay $2.2 million in OSC settlementExecutive Summary

The downfall of crypto asset trading platform QuadrigaCX (Quadriga) resulted from a fraud committed by Quadriga’s co-founder and CEO Gerald Cotten (Cotten). Clients entrusted their assets to Quadriga, which provided false assurances that those assets would be safeguarded. In reality, Cotten spent, traded and used those assets at will. Operating without any proper system of oversight or internal controls, Cotten was able to misuse client assets for years, unchecked and undetected, ultimately bringing down the entire platform.

Cotten was able to misuse client assets for years, unchecked and undetected, ultimately bringing down the entire platform.

The collapse of Quadriga caused massive losses for investors from Canada and around the world. On January 14, 2019, Quadriga announced that Cotten had died in India the previous month. By February 5, the Quadriga platform had ceased operations and filed for creditor protection. Over 76,000 clients were owed a combined

in assets. Approximately 40 per cent of these clients were Ontarians. Ernst & Young, the bankruptcy trustee, was able to recover or identify just $46 million in assets to pay out to clients. The people who trusted Quadriga with their money and crypto assets collectively lost at least $169 million.

See:  Unstable coins: cryptoassets, financial regulation and preventing financial crime in the emerging market for digital assets

Staff of the Ontario Securities Commission (OSC) undertook a review of Quadriga’s business operations to determine how the platform was run, what caused its collapse, and where the money went. Over a period of approximately ten months, a multi-disciplinary team of Enforcement Branch Staff analyzed trading and blockchain data, interviewed key witnesses and collaborated with numerous regulatory bodies in Canada and abroad.

It has been widely speculated that the bulk of investor losses resulted from crypto assets becoming lost or inaccessible as a result of Cotten's death. In our assessment, this was not the case. The evidence demonstrates that most of the $169 million asset shortfall resulted from Cotten's fraudulent conduct, which took several forms.

The bulk of the asset shortfall—approximately $115 million—arose from Cotten's fraudulent trading on the Quadriga platform. Cotten opened Quadriga accounts under aliases and credited himself with fictitious currency and crypto asset balances which he traded with unsuspecting Quadriga clients. He sustained real losses when the price of crypto assets changed, thereby creating a shortfall in assets to satisfy client withdrawals. Cotten covered this shortfall with other clients’ deposits. In effect, this meant that Quadriga operated like a Ponzi scheme.

Cotten lost an additional $28 million while trading client assets on three external crypto asset trading platforms without authorization from, or disclosure to, clients. He also misappropriated millions in client assets to fund his lifestyle. In its final months, Quadriga had almost no assets left and was operating like a revolving door—new client deposits were immediately re-routed to fund other clients’ withdrawals.

What happened at Quadriga was an old-fashioned fraud wrapped in modern technology. There is nothing new about Ponzi schemes, unauthorized trading with client funds and misappropriation of assets. Crypto asset trading platforms, however, are novel and the regulatory framework for these platforms is evolving. Quadriga did not consider its business to involve securities trading and it did not register with any securities regulator. This lack of registration facilitated Cotten's ability to commit a large-scale fraud without detection. So did the absence of internal oversight over Cotten. From 2016 onwards, Cotten was in sole control of a company that had hundreds of thousands of clients and transacted over a billion dollars of fiat currency-denominated assets and over five million crypto asset units. He ran the business as he saw fit, with no proper system of internal oversight or controls or proper books and records.

See:  QuadrigaCX Aftermath: The Bigger Picture

Similarly, Quadriga clients could not have known what Cotten was doing. Under the Quadriga business model, clients entrusted their money and crypto assets to Quadriga. Quadriga provided no meaningful insight into how those assets were being stored, moved and spent. To the contrary, Quadriga provided false assurances about asset storage. Clients had no means of verifying these claims or obtaining meaningful information about the handling of their assets. This lack of transparency also facilitated Cotten's fraud.

Under normal circumstances, these findings would likely have led to an enforcement action against Cotten and/or Quadriga. However, this is not practical given that Cotten is deceased and Quadriga is bankrupt, with its assets subject to a court-supervised distribution process. Nevertheless, we believe it is in the public interest to share our findings with the public to help investors understand what happened to Quadriga and hopefully prevent this type of situation from recurring.

The misconduct we uncovered in relation to Quadriga is limited to Quadriga and should not be understood as applying to the crypto asset platform industry as a whole. Properly conducted, crypto asset trading is a legitimate and important component of our capital markets. We remain committed to working with this industry to foster innovation. Financial innovation has always been critical to the health of our economy and the competitiveness of our capital markets.

Continue to the full article --> here

Download the 33 page PDF report --> here


NCFA Jan 2018 resize - Coinsquare to pay $2.2 million in OSC settlement 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 - Coinsquare to pay $2.2 million in OSC settlementFF Logo 400 v3 - Coinsquare to pay $2.2 million in OSC settlementcommunity social impact - Coinsquare to pay $2.2 million in OSC settlement

JOIN US THUR, AUGUST 13 CURRENCY WARS, DIGITAL ASSETS, THE RISE OF DEFI WEEK!


GET TICKETS NOW
More Info


Week 6 Currency Wars Digital Assets and DeFi resize - Coinsquare to pay $2.2 million in OSC settlement



NCFA COVID 19 letter to government to support Fintechs and SMEs - Coinsquare to pay $2.2 million in OSC settlement

NCFA Newsletter subscribe600 - Coinsquare to pay $2.2 million in OSC settlement

 

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

20-year-old Dubliner lands €14.6m funding round from top Silicon Valley firms

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

Independent.ie | Adrian Weckler | May 21, 2020

Shane Curran Evervault - Coinsquare to pay $2.2 million in OSC settlementA 20-year-old former BT Young Scientist winner has landed $16m (€14.6m) in new funding from some of Silicon Valley’s most prestigious US venture capital firms

The famous former data security chief for Yahoo and Facebook, Alex Stamos, has come on as a new investor, as have Eventbrite CEO Kevin Hartz and (French firm) Datadog’s CEO Olivier Pomel.  The heavy-hitting Silicon Valley firms backing the venture are led by Index Ventures with participation from Sequoia Capital and Kleiner Perkins and assistance from Dublin-based venture firm Frontline.

“We’re aiming to distill what GDPR did in 99 Articles down to a line of code,” said Mr Curran.

Seven years ago, Sequioa invested in the payments firm created by another former Young Scientist winner, Patrick Collison and his brother John. Stripe has gone on to become one of the world’s most valuable private companies, valued at $35bn (€31.7bn).

See:   Cyber security world first as unique guide is launched

Evervault hosts a network of hardware-secured data processing ‘enclaves’ which allows developers to deploy their applications in privacy ’cages’.  These cages allow information to be processed securely with strictly controlled access but without changing the way that developers build their software. Developers integrate with the Evervault API through their publicly available developer SDKs for all major architectures and frameworks.

“This is conceptually simple, but operationally complex. We’re building cages alongside specific companies which handle extremely sensitive data. Think location data, banking data, payments data, kids’ data, health data and more. At Evervault, we believe that data privacy isn’t a regulatory problem; it’s a technology problem.”

Continue to the full article --> here

 


NCFA Jan 2018 resize - Coinsquare to pay $2.2 million in OSC settlement 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 - Coinsquare to pay $2.2 million in OSC settlementFF Logo 400 v3 - Coinsquare to pay $2.2 million in OSC settlementcommunity social impact - Coinsquare to pay $2.2 million in OSC settlement

JOIN US THUR, AUGUST 13 CURRENCY WARS, DIGITAL ASSETS, THE RISE OF DEFI WEEK!


GET TICKETS NOW
More Info


Week 6 Currency Wars Digital Assets and DeFi resize - Coinsquare to pay $2.2 million in OSC settlement



NCFA COVID 19 letter to government to support Fintechs and SMEs - Coinsquare to pay $2.2 million in OSC settlement

NCFA Newsletter subscribe600 - Coinsquare to pay $2.2 million in OSC settlement

 

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

Remote Working Cybersecurity Checklist

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

Cyber Management Alliance | Aditi Uberoi | May 21, 2020

CMA Cybersecurity checklist - Coinsquare to pay $2.2 million in OSC settlement

Established in 2015, Cyber Management Alliance is one of the world’s leading cyber incident & crisis management service providers offering advisory, executive training and bespoke workshops in all aspects of cyber crisis management, incident planning, incident response testing and tabletop exercises. Cyber Management Alliance (CM-Alliance) is the creator of the internationally-acclaimed NCSC-Certified, Cyber Incident Planning and Response (CIPR) course. Previous attendees of the NCSC-Certified CIPR course and tabletop exercises include organisations including the United Nations, UK Ministry of Defence, several UK Police Forces, NHS Trusts, European Central Bank, Swiss National Bank, Microsoft, Ernst and Young, BNP Paribas and many others.

See:

 

Remote Working Cybersecurity Checklist

Some areas of risk - note this is not a comprehensive list but a list to help you prepare for cybersecurity attacks:

  • Cybersecurity
  • Passwords
  • Mobile Equipment
  • Privileged Users
  • Phishing Emails and Scams
  • Policy and Illegal Activity
  • Working remotely, Online Meetings & Calls
  • Exceptions and Change
  • Privacy
  • Cyber Attack and Incident Response
  • Backup Backup Backup
  • HR and Mental and Occupational Health
  • Video and Audio Conferences
  • Helpdesk & Support

Download the Remote Working Cybersecurity Checklist --> Now

 


NCFA Jan 2018 resize - Coinsquare to pay $2.2 million in OSC settlement 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 - Coinsquare to pay $2.2 million in OSC settlementFF Logo 400 v3 - Coinsquare to pay $2.2 million in OSC settlementcommunity social impact - Coinsquare to pay $2.2 million in OSC settlement

JOIN US THUR, AUGUST 13 CURRENCY WARS, DIGITAL ASSETS, THE RISE OF DEFI WEEK!


GET TICKETS NOW
More Info


Week 6 Currency Wars Digital Assets and DeFi resize - Coinsquare to pay $2.2 million in OSC settlement



NCFA COVID 19 letter to government to support Fintechs and SMEs - Coinsquare to pay $2.2 million in OSC settlement

NCFA Newsletter subscribe600 - Coinsquare to pay $2.2 million in OSC settlement

 

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

Quantum Computers Challenge Blockchain’s Invincibility: What To Do Now

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

Forbes | Susan Galer | May 19, 2020

blockchain security - Coinsquare to pay $2.2 million in OSC settlementTimelines for the emergence of quantum computers may be fuzzy, but the threat they pose to the vaunted security of blockchain technology is profoundly real. Originally popular as fail-safe security for bitcoin enthusiasts, blockchain is making inroads across numerous industries, most notably as a track and trace tool proving the provenance of goods across vast supply chains. Blockchain-based security may be even more valuable in managing supply and demand shocks during the pandemic and after. However, as blockchain services grow and quantum computers begin to emerge, now is the time to start thinking about quantum-resistant blockchain.

“Once quantum computers can break the cryptography being used today, blockchain loses its immutability,” said Cedric Hebert, senior researcher at SAP Security Research.

“We wouldn’t be able to trust new transactions on a blockchain that wasn’t meant to resist quantum-fueled attacks. Companies will need to adopt new protocols to resist quantum attacks.”

See:  The research frontier: where next for AI and collective intelligence?

Right now, it’s difficult to go backwards on a blockchain’s immutable ledger and change original information in each block of the chain. This is especially the case as blocks are added with more data. People can’t easily rewrite history on its immutable ledger because other nodes on the chain would automatically reject any changes. Also, traditional blockchains are based on asymmetric cryptography, which prevents fraudulent signing. Unfortunately quantum computers could theoretically break the immutability of any block in the chain and falsify historical transactions.

“Companies can use blockchain technology if they incorporate quantum-resistant encryption protocols,” said Hebert. “You would need to freeze the blockchain at some point and migrate transactions to the new protocol. ”

Prepare now for post-quantum security

Even if a fraction of the predictions about blockchain come true, the security stakes are high for consumers and businesses. Blockchain made Gartner IT’s list of top 10 strategic technology trends for 2020, predicted to infiltrate everything from processing insurance claims, loans, and recalls, to identity management for students, patients, and citizens. By 2022, IDC analysts said 10 percent of the world's adult population will register for a blockchain-based self-sovereign ID, creating an expanding market of 485 million people who want to own and control their digital identity. Whether it’s verifying transactions for bitcoin mining or tracking food from farm to table, blockchain’s security horizon depends on the unique situation.

“Companies need to factor in the lifespan of their blockchains,” said Andrey Hoursanov, lead of quantum security at SAP. “If you’re using it to trace shipments from raw materials sourcing to delivery, maybe you’re looking at months, not years. In contrast, bitcoin investments typically take longer. That’s where you need to seriously consider how to protect the blockchain against quantum attacks likelier to happen further in the future.”

Re-securing cryptocurrency

Cryptocurrency isn’t necessarily just for consumers trading bitcoins. IDC analysts predicted that over 12 countries, mostly emerging economies, will begin issuing a digital currency using blockchain technologies to promote economic stability and encourage electronic commerce by 2023. As some governments begin using cryptocurrencies, Hoursanov said companies will need to begin looking at post-quantum blockchain technology for business-to-business (B2B) transactions such as procurement that involves collaboration between buyers and suppliers.

See:  Accenture: Fintech, Cybersecurity and Methods to Handle Threat

Cross-border payments are another potential security risk. For example, IDC researchers predicted that 85 percent of global container shipping will be tracked by blockchain, with half of this volume using blockchain-enabled cross-border payments in just three years. They said that 40 percent of tier one financial institutions will use blockchain networks to process point-to-point cross-border payments, bypassing SWIFT and the correspondent or central banking infrastructure by 2024.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Coinsquare to pay $2.2 million in OSC settlement 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 - Coinsquare to pay $2.2 million in OSC settlementFF Logo 400 v3 - Coinsquare to pay $2.2 million in OSC settlementcommunity social impact - Coinsquare to pay $2.2 million in OSC settlement

JOIN US THUR, AUGUST 13 CURRENCY WARS, DIGITAL ASSETS, THE RISE OF DEFI WEEK!


GET TICKETS NOW
More Info


Week 6 Currency Wars Digital Assets and DeFi resize - Coinsquare to pay $2.2 million in OSC settlement



NCFA COVID 19 letter to government to support Fintechs and SMEs - Coinsquare to pay $2.2 million in OSC settlement

NCFA Newsletter subscribe600 - Coinsquare to pay $2.2 million in OSC settlement

 

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

RegTech: The Financial Industry Disruptor

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement

Guest Post | May 13, 2020

Regtech sector - Coinsquare to pay $2.2 million in OSC settlementSince the global financial crisis of 07/08, firms have had more and more stringent rules enforced upon them to ensure that such a catastrophe isn’t allowed to happen again. This increase in regulatory burden has gone a long way in keeping disasters at bay, but at the same time it has put a lot of pressure on people working in the financial industry.

Observing an ever-changing onslaught of compliancy rules is no mean feat, that much is for certain. Professionals in the field of finance could have the rug pulled out from underneath them at any moment, which is why they’ve long called for a bit more support. Fortunately, thanks to the emergence of RegTech, they now have the exact level of assistance that they require.

See:  TC Webinar (May 21, 2020): FinTech, RegTech, and SupTech Community of Practice with Simone di Castri

RegTech has well and truly changed the face of the financial industry… and many will say for the better. To find out what kind of an impact it has had, be sure to read on.

The impact of RegTech

The Institute of International Finance has recently pinpointed seven key areas of compliance and regulatory reporting that RegTech has had a distinct impact on:

Risk-data aggregation

This makes it easier for finance professionals to draw up capital and liquidity reports.

Modelling and forecasting

Finance professionals now have the capacity to better manage their risk because of the fact that it is now easier for them to analyse future trends.

Payment transaction monitoring

This gives finance professionals a tighter grip whenever they enter into an agreement with a new client/partner.

Market trading

Finance professionals can now calculate interest margins and study the choice of trading venue, which in turn allows them to make much sounder investments.

New regulations

RegTech automates the interpretation of new compliancy regulations, which ultimately allows finance professionals a better chance of being able to observe the rules that are enforced upon them.

 

The different types of RegTech

To ensure that it is capable of optimizing the daily workflow of a wide range of finance professionals, RegTech comes in a plethora of shapes and size. Here are the three different types of Regulator Technology that you should be aware of:

Tracking

Finance professionals can automate the process of tracking their compliancy laws by investing in CUBE DRP regulatory compliance software.

Reporting

This allows finance professionals the opportunity to submit reporting data with ease, which in turn allows them to draw up important reports at a much quicker pace.

Training

The training feature that is installed into most RegTech solutions makes it possible for whole workforces to learn about this type of technology while on the job.

Ask all of your friends in the finance industry what they think about RegTech, and they’ll no doubt all say the same thing — it has made life a whole lot easier. Without this tech at hand, finance professionals would be forced to study a countless amount of compliancy documents each day. This would inevitably lead to errors being made, and it would drain the workforce of any enthusiasm they once had for regulator reporting.

 


NCFA Jan 2018 resize - Coinsquare to pay $2.2 million in OSC settlement 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 - Coinsquare to pay $2.2 million in OSC settlementFF Logo 400 v3 - Coinsquare to pay $2.2 million in OSC settlementcommunity social impact - Coinsquare to pay $2.2 million in OSC settlement

JOIN US THUR, AUGUST 13 CURRENCY WARS, DIGITAL ASSETS, THE RISE OF DEFI WEEK!


GET TICKETS NOW
More Info


Week 6 Currency Wars Digital Assets and DeFi resize - Coinsquare to pay $2.2 million in OSC settlement



NCFA COVID 19 letter to government to support Fintechs and SMEs - Coinsquare to pay $2.2 million in OSC settlement

NCFA Newsletter subscribe600 - Coinsquare to pay $2.2 million in OSC settlement

 

share save 171 16 - Coinsquare to pay $2.2 million in OSC settlement