NCFA Innovation 2019

Category Archives: Cyber Security, Hack and Fraud Alerts

Bitfinex and Tether Fined $18.5M and Banned from Operating in New York

Bitcoin.com | Jeffrey Gogo | Feb 23, 2021

tether - Bitfinex and Tether Fined $18.5M and Banned from Operating in New YorkBitfinex and Tether have been banned from operating in New York and must pay a fine of $18.5 million as part of a settlement with the New York Attorney General’s (NYAG’s) office over a case dating back to 2019.

In a statement on Tuesday, NY Attorney General Letitia James accused the two entities of hiding severe losses from investors. “Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said James.

See:  Are Stablecoins Better Than Bitcoin?

She continued: “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system.”

Per the statement, an NY Attorney General’s investigation found that the companies made false statements about the backing of tether, with Bitfinex using Tether’s funds to clandestinely cover an $850 million financial hole at its bank Crypto Capital in Panama.

Tether published a statement on Tuesday “admitting to no wrongdoing.” It argued:

The Attorney General’s Office concluded, in essence, that we could have done better in publicly disclosing these events. Contrary to online speculation, after two and half years there was no finding that Tether ever issued tethers without backing, or to manipulate crypto prices.

According to the investigation, from 2017, Tether had no access to the banking system and did not have reserves to back the tether (USDT) in circulation at the time. Bitfinex stresses that it did not lose any money, claiming Crypto Capital’s funds were confiscated by governments in Portugal, Poland and the U.S.

Read:  Price Discovery in Digital Currencies is Maturing

Bitfinex and Tether have now been barred from having any trading activity with the citizens of New York, as a result. The NYAG requested that the two companies submit regular reports on core business functions. Tether must also offer public disclosures, by category, of the assets backing tether, including disclosure of any loans or receivables to or from affiliated entities.

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NCFA Jan 2018 resize - Bitfinex and Tether Fined $18.5M and Banned from Operating in New York 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

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FCA and City of London’s Digital Sandbox Pilot – Presentations and Use Cases

Digital Sandbox Pilot UK | Feb 20, 2021

digital sandbox initiative FCA and City of London 1 - FCA and City of London's Digital Sandbox Pilot - Presentations and Use Cases

The pilot ran from November 2020 through to February 2021. An evaluation process is currently being undertaken by an independent consultant. The pilot will be assessed against the 5 success criteria:

  • Innovation – role played in encouraging innovation in financial services to the Covid-related challenges detailed in the use cases
  • Speed – role played in enabling quicker testing and development of proof of concepts
  • Collaboration – role played in fostering collaboration, facilitating diversity of thinking and creating an ecosystem of key organisations
  • Pilot features – the effectiveness of the key features of the pilot (see below) in stimulating and accelerating innovation
  • Sustainable future – role played in informing and assisting the design and future operating model of a permanent digital sandbox

See:  UK Digital sandbox – coronavirus (Covid-19) pilot

Select Teams and Descriptions

Fraud & scams

Sedicii: An AML solution that allows financial institutions to securely share knowledge about clients or transactions without disclosing any underlying data or information.

EalaX Ltd: A solution that creates digital synthetic twins of real financial data which can then be used to detect fraudulent patterns and complex problems that are being experienced during Covid-19.

MPC4AML: A solution that uses a Privacy Enhancing Technology (PET) known as Secure Multi-Party Computation (MPC) to run risk scores on a transaction network data from multiple banks.

Norbloc: A solution that uses blockchain to allow for a secure and GDPR-compliant sharing of verified KYC files across multiple institutions in real-time to create a single profile per customer.

IT2 Fraud Signals - Trust Stamp, Cifas, Lloyds & OneBanks: A solution that uses biometric data to create an identity token that can be used to match, de-duplicate and verify across institutions while protecting the users personal identity information.

See:  UK: Open Finance: The FCA Consults On How To Transform The Financial Services Market

Vulnerability

PrinSIX Technologies: PrinSIX is focusing on detecting vulnerability within credit applications, testing and deploying dynamic onboarding journeys that identify applicant vulnerability flags and trigger highly personalised digital assessments to improve customer outcomes.

Qpal: A digital assistant focused on financial wellbeing, powered by Open Banking, that automates financial decision for consumers.

Applied Blockchain:  A solution to allow a range of lenders to assess the credit risk of a borrower without requiring direct access to private and sensitive financial data by using privacy-preserving technologies.

DirectID:  A solution that uses transactional data to predict the probability of default based on an individual’s historical and predicted cash flow.

See:  FCA Report (Feb 2020): Sector Views – Key Areas of Harm Identified

SME Lending

Fluence:  A solution that uses natural language processing AI to interpret and analyse financial applications and claims handling processes in order to automatically interpret new applications and claims.

Company Watch Ltd:  A solution to enable finance funding providers to predict, analyse and risk assess the ability of a small business to repay credit within certain time periods.

Fractal Labs:  A solution that uses Open Banking to create a cashflow forecast in order to help  assess the eligibility of SME’s for small working capital loans.

Untangled Finance:  A solution using tokenised assets on a blockchain to enable simple, cost-effective and transparent ways to securitise SME loans and invoices.

Continue to the full list and to watch presentations --> here

 


NCFA Jan 2018 resize - FCA and City of London's Digital Sandbox Pilot - Presentations and Use Cases 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

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Overview of how Canada is modernizing its core payments infrastructure

Asset Servicing Times | Feb 3, 2021

Canadas payment system modernization - Overview of how Canada is modernizing its core payments infrastructure

With an evolving payments landscape, Canada is marching ahead to modernise its core payments infrastructure with a vision to build a modern payments system that is fast, flexible, secure and promotes innovation

Developments in technology, evolving customer behaviour and new market dynamics are all catalysts for change in the payments space.  Recent research has suggested that banks are committed to investing in areas such as digitising customer journeys, introducing machine learning, and improving technological and operational resilience, and this hasn’t been swayed by the pandemic.

See:  Bank of Canada Speech: Money and Payments in the Digital Age

Real-time payments are becoming increasingly popular as they allow participants to make and receive instant payments, providing convenience, speed, and faster availability of funds.  Payments Canada recently selected Mastercard’s Vocalink as the clearing and settlement solution provider for the country’s new real-time payments system, the Real-Time Rail (RTR).


“Ultimately, Canadians are seeking choice and convenience. Technology, payments innovation, and shifts in the ways that Canadians make payments are all contributing to our developing payments landscape,” says Ryan Grundy, lead, industry relations, Payments Canada.

Experts say Canada continues to hold a strong position among institutional investors on the world stage, in keeping with the strength of its financial markets and ‘big six’ banks — the National Bank of Canada, Royal Bank, the Bank of Montreal, Canadian Imperial Bank of Commerce, Scotiabank, and Toronto Dominion Bank.

See:  Bank of Canada partners with the Bank for International Settlements to launch innovation centre

Canada’s financial sector features robust and mature markets, stability and transparency, proven infrastructure, efficient settlement mechanisms and a well evolved regulatory framework – along with a focus on controlled innovation.  In line with the consolidated nature of Canada’s financial sector, the payments landscape also focuses on the major bank-driven players.

“In Canada, we see a synthesis of domestic innovation combined with global connectivity, with local players deploying Canadian solutions where they make sense according to Canada’s financial markets and infrastructure, while also driving connectivity or access to global platforms where either scale and accessibility make them the right direction — or, particularly in the retail space, where client demands and appetite for global solutions fits,” explains Lloyd Sebastian, vice president, global financial institutions, at CIBC Mellon.

For example, Interac is a payment network jointly owned by the consortium of banks, which links the banks along with other financial institutions, retailers and others to enable more seamless electronic financial transactions.  With Canadian consumers concentrated on a small group of big six players who offer integrated Interac services, that is likely to continue to shape consumer use.

Marching ahead

In line with efficiency and convenience priorities in Canada, Payments Canada is marching ahead with its journey to modernise the country’s core payments infrastructure.  “Its vision is to build a modern payments system that is fast, flexible, secure and promotes innovation,” says Sebastian.

See:  How will Canada reinvent its payments framework for a post-pandemic digital reality?

As part of these developments, Payments Canada has selected Mastercard’s Vocalink as the clearing and settlement solution provider for the country’s new real-time payments system, the RTR. Expected to launch in 2022, RTR will support payment information travelling with payments and act as a platform for innovation, enabling the introduction of new payment products and experiences.

While RTR is operated by Payments Canada, it is underpinned by the ISO 20022 data standard, and regulated by the Bank of Canada. Canada’s new real-time payments system will consist of two components including a clearing and settlement component provided by Mastercard; and an exchange component.

As well as the upcoming launch of the RTR system in 2021, Lynx, a new high-value payments system to replace the Large Value Transfer System is set to launch this year.

“Introducing Lynx is a fundamental part of Payments Canada’s modernisation program that will transform the country’s payments ecosystem. Lynx will replace Canada’s current Large Value Payments System. The Lynx system will be a world-class, high-value payments system built in compliance with Canadian and international risk standards and will support the global ISO 20022 messaging standard,” says Payments Canada’s Grundy.

Lack of data and transparency within payment messages is a major challenge in Canada’s payment space and this creates a number of inefficiencies for businesses of all sizes.  This includes labour-intensive payments reconciliation, limited predictability of cash inflows and outflows, difficulty tracking cross-border payments, and continued reliance on manual back-end processes.

See:  Right to anonymous payments

As Lynx and RTR will be underpinned by the ISO 20022 messaging standard, they should be able to support businesses in overcoming these challenges.

“The standard enables the transfer of rich data with payments, a change that has the potential to improve automation and efficiency, reducing many pain points for Canadian businesses,” explains Grundy.

Continue to the full article --> here

 


NCFA Jan 2018 resize - Overview of how Canada is modernizing its core payments infrastructure 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

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Right to anonymous payments

Paytechlaw | Dr. Hugo Godschalk | Nov 2018

Privacy and payments - Right to anonymous payments

Do we have a right to anonymous payments? If so, is this right linked to certain payment instruments, such as cash? Does this right apply equally to payers in the analogue and the digital world? For most people, the daily payments initiated as market participants are unavoidable. It has therefore become one of our basic needs, like sleeping and eating. The right to anonymity, which can be regarded as an essential pillar of a modern democratic society, is generally derived from the fundamental rights to freedom of expression and informational self-determination.

This right is by no means limited to the analogue world. For example, we have the right to browse the internet anonymously, using appropriate software and pseudonyms. Does this right also apply to the payment act? In the analogue world, this right is indirectly established by the existence of cash. Cash leaves no traces of data and, due to its special status as legal tender, it is a means of payment

See:  Bill to overhaul Canada’s privacy laws coming soon

As long as there is still cash as legal tender, we therefore do not only have the option, but also the right to anonymous payments. The interesting question of whether this right can also be enforced anywhere and at any time (e.g. when paying the broadcasting licence fee) has been debated by the German courts for quite some time, at ever higher levels.

Right to anonymous cashless payments     

As a means of payment, cash, which is still dominant today, is gradually losing in importance (not, however, as a means to store value). The shift in demand in favour of online retailing has contributed to this, as cashless payments are usually the only option in that area. In the future digital world with, for example, the Internet of Things and automotive payment applications (pay per car), the only thing that will remain are cashless digital payments. In Germany, the right to anonymous online payments is only protected by law for the use of telemedia (Sec. 13 No. 6 of the German Telemedia Act – Telemediengesetz).

The German party SPD was the only party who was consistent and future-oriented in its election campaign program in 2017 in this regard as it demanded a general right to anonymous cashless payment. And rightly so, as why should I have to forfeit my elementary rights from the analogue world when entering the digital world, which is inevitable nowadays? The demand of the SPD party was an important step forward, which unfortunately was again deeply buried in the slightly childish games in the sandpit of the grand coalition.

See:  Cadillac Fairview broke privacy laws by using facial recognition technology at malls, investigators conclude

Is this demand even technically feasible? “Cashless + anonymous” is not an inherent contradiction. In contrast to a cash payment, there is always data on the payment process, but not necessarily on the identities of the payer and the payee. This means that digital payments can also be made while maintaining anonymity. You don’t have to surf the Darknet and pay with Bitcoins to achieve this. Digital payments with an anonymous prepaid card (e.g. a gift card) demonstrate how easily this can be done. Since the mid-1990s, analogue cash has been capable of being used digitally 1:1 as an anonymous bearer instrument without any further complications. If technology is not the problem, then what is?

5AMLD: The right through the back door

Let us recall the chutzpah of EU Directive 2018/843 (better known as AMLD5), which has to be implemented by 10 January 2020. In its first draft (2016), the Commission wanted to ban anonymous cashless online payments using e-money. Anonymous e-money payments at the physical POS have not yet been banned, but the thresholds have been significantly lowered (from EUR 250 to EUR 150). In this segment, the door should not be slammed shut completely, as prepaid cards currently still make an important contribution to social and financial inclusion according to recital 14. In addition, according to the Commission’s Impact Assessment Analysis on the draft directive, a ban on anonymous payments in this segment would not be very effective as cash can still be used here.

See:  Survey Until Feb 26: Ontario Seeks Input from Individuals and Businesses to Help Shape Digital ID Program

AMLD is obviously intended to prevent money laundering and terrorism financing. There was no evidence of money laundering with anonymous prepaid cards. On the contrary, the current scandals show that money laundering in the billions is mainly carried out via non-anonymous accounts by fully identified bank customers (Danske Bank in Estonia, ING Bank in the Netherlands, Deutsche Bank in Russia, etc.). The only remaining argument is therefore terrorism financing. There was vague evidence, which has not yet been verified, that in the Paris attack (November 2015) the Islamic terrorists used an (anonymous?) prepaid card.

The consequence is to abolish the right to anonymous cashless payment on the internet for half a billion EU citizens. As a passionate cyclist, I am delighted that the terrorists did not use an anonymous bicycle when they fled, for otherwise the Commission would have introduced the same questionable logic of compulsory bicycle registration and the use of number plates throughout Europe.

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NCFA Jan 2018 resize - Right to anonymous payments 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

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With Cyberattacks on the Rise, Revolut Explains why Cyber Insurance is Necessary

Crowdfund Insider | | Feb 1, 2021

cyber insurance - With Cyberattacks on the Rise, Revolut Explains why Cyber Insurance is NecessaryPublic liability, professional indemnity and employers liability are no longer adequate when it comes to protecting your company or business. But there are certain covers available that could secure your company further, according to a blog post published by Revolut.

The leading digital banking platform has teamed up with Superscript in order to provide flexible, “customizable” business insurance that can keep up with “modern-day risks.”

Nearly every business now depends on the Internet, and has a lot to lose if their IT systems go down or critical data is lost — but still, 82% of these companies do not have cyber insurance, Revolut revealed. The banking challenger noted that a “widely misjudged perception of the risk may be in part to blame.” Revolut’s blog post pointed out that “worryingly, a survey conducted by Gallagher found that over 80% of small businesses didn’t believe they were at risk of being targeted by a cyber attack.”

See:  Revolut and Chubb Team Up to Provide Insurance Options to Fintech’s customers

In reality, however, cyberattacks are underway “all the time” and may potentially have “devastating consequences for any business,” the digital bank noted. Estimations have revealed that the United Kingdom’s small businesses are “collectively subject to almost 10,000 cyber attacks each day.”

While the cybersecurity industry continues to expand, there’s plenty of software currently available to help users protect their financial data and IT systems. However, the Revolut team claims that it’s “impossible to be 100% safe.” They added that “what’s more, with the Internet of Things (IoT) devices becoming increasingly prevalent – expected to increase from 31 billion in 2020 to 75 billion in 2025 – it’s hard to keep track of and protect against potential security flaws.” They also mentioned that “to add to this, 95% of cybersecurity breaches are due to human error.”

Revolut’s blog further noted:

“So, while businesses invest in technologies, and most IT teams plan to spend more on cybersecurity measures, insurance is often an oversight. But the impact of a cyber attack and subsequent data breach can be far-reaching. From losing the ability to operate to reputational damage and regulatory penalties, cyber attacks can be brutal for even the most well-resourced businesses to recover from.”

A cyberattack can be described as an Internet-based attack carried out via computers against other PCs or networks. They are performed so that computer systems are disabled, or they may be carried out to steal data, and/or gain access to other computers or networks.

See:  Canadian Council of Insurance Regulators and Canadian Insurance Services Regulatory Organizations announce Fintech/Insurtech Advisory Hub

The main goals of these cyberattacks are “usually financially motivated, although sometimes it may be motivated by espionage,” the blog from Revolut explained. It pointed out that the methods used to conduct cyberattacks can vary greatly, and include: denial-of-services (DoS) attacks, malware, phishing, and ransomware.

The Revolut team also mentioned:

“Hackers may use a combination of … techniques to maximize the attack’s efficiency. One thing that isn’t well understood is that hackers also use people to get the job done. By manipulating you or your employees, hackers can get inside your network and wreak havoc. Social engineering — where a hacker manipulates an employee by posing as another colleague (usually someone senior) to steal either money or data — is one of the leading causes of successful cyber attack insurance claims.”

Although larger companies are quite likely to have cybersecurity professionals on their teams,  who are responsible for regularly monitoring and addressing problems, smaller firms are less likely to have adequate resources to perform these checks.

Revolut’s blog post questions or asks what businesses would do if they fall victim to a cyber attack and can’t operate their IT systems or website. Revolut claims that cyber insurance can offer “specialist technical support to help you quickly get things up and running.”

See:  Here is why InsurTech is heating up as an investment category

The digital bank added:

“Understanding what constitutes a GDPR violation has been a challenge for businesses of all sizes.  However, not all GDPR penalties and fines are quite as costly as the reported €20 million fine.”

Continue to the full article --> here

 


NCFA Jan 2018 resize - With Cyberattacks on the Rise, Revolut Explains why Cyber Insurance is Necessary 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

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Fintech Fridays EP50: Compliance to the Moon

NCFA Canada | Feb 12, 2021

JOIN US ON A STORYTELLING JOURNEY EVERY FRIDAY.

FF EP50 Mark Binns BIGG Digital Assets banner - Fintech Fridays EP50:  Compliance to the Moon


EP50: Compliance to the Moon

Featured Guest:

MARK BINNS, Chief Executive Officer, BIGG Digital Assets Inc.  (LinkedIn);

BIGG CEO, Mark Binns Quote:  “BIGG is a compliance-first crypto company that believes Bitcoin offers the best store of value for its free cash flows. This has led us to adopt an initiative of reinvestment into the underlying asset of our industry. Of late, we are seeing a surge in the number of corporations buying Bitcoin to hold as a treasury reserve asset. We have held Bitcoin on our balance sheet since 2017, and foresee the next evolution being the investment of fiat profits into crypto. BIGG aims to be at the forefront of this movement. Profits from Netcoins’ trading and Blockchain Intelligence Group’s software sales earned in fiat will be converted into and held in Bitcoin, until such time as required by operational demands. The decision to roll forward our profits into Bitcoin, where we anticipate returns to outpace fiat values, is easy and highly strategic.

About BIGG Digital Assets Inc.

BIGG Digital Assets Inc. (BIGG) believes the future of crypto is a safe, compliant, and regulated environment. BIGG invests in products and companies to support this vision. BIGG owns two operating companies: Netcoins (netcoins.ca) and Blockchain Intelligence Group (blockchaingroup.io).

Netcoins develops brokerage and exchange software to make the purchase and sale of cryptocurrency easily accessible to the mass consumer and investor with a focus on compliance and safety. Netcoins utilizes BitRank Verified® software at the heart of its platform and facilitates crypto trading via a self-serve crypto brokerage portal at Netcoins.app.

Blockchain Intelligence Group (BIG) has developed a Blockchain-agnostic search and analytics engine, QLUETM, enabling Law Enforcement, RegTech, Regulators and Government Agencies to visually track, trace and monitor cryptocurrency transactions at a forensic level. Our commercial product, BitRank Verified®, offers a “risk score” for cryptocurrencies, enabling RegTech, banks, ATMs, exchanges, and retailers to meet traditional regulatory/compliance requirements.

For more information and to register to BIGG’s mailing list, please visit our website at https://www.biggdigitalassets.com.

Trade Symbols:  CSE: BIGG | OTC: BBKCF | WKN: A2PS9W

 

BIGG Digital - Fintech Fridays EP50:  Compliance to the Moon

About this episode:

On this milestone episode, our host Manseeb Khan sits down with Mark Binns CEO of BIGG Digital Assets. They cover the rally behind bitcoin, big tech investing in crypto, and giving your kids crypto instead of fiat for allowance money.  Enjoy! 

Subscribe and tune in each Friday to check out the latest movers and shakers in fintech. Listen to more podcasts here:

Season 1 | Season 2 | Season 3

 


Fintech Friday Transcript of Episode 50:  Mark Binns of BIGG Digital Assets Inc.

Intro: Welcome to fintech Friday's a weekly podcast brought to you by the National Crowdfunding and Fintech Association of Canada and partners. Covering all things fintech, blockchain, AI and alternative finance.

 

Manseeb Khan : [00:00:00] For Episode 50, I got Mark Binns. Mark, thank you so much for sitting down with me today.

 

Mark Binns: [00:00:34] Yeah, great to be here. I'm excited to talk with you today.

 

Manseeb Khan : [00:00:37] Awesome. So, Mark, could you just for, I guess, the five or six people that may not know who you are and what BIGG Digital Assets is could just give us a rundown of what big is and a little bit of background of who you are.

 

Mark Binns: [00:00:52] Yeah, absolutely. So BIGG Digital Assets, publicly-traded company on the CSC in Canada under the ticker BIGG. We're a compliance first crypto company. And what that means is BIGG is a company that has found a way to make money in the compliance and regulatory space around cryptocurrency. We own two operating businesses. One is called Blockchain Intelligence Group, and it's a crypto forensics software company. We make products that help track crypto through the blockchain and the other companies called Netcoins. And that coins is a crypto exchange in Canada, mainly focused in the Canadian market. And both of those companies together make up BIGG Digital Assets. My background and how I got involved is I actually did an undergrad in computer science. I'm a tech guy first and foremost. I used to write code for a living and then I got interested in the business side of technology. So I got my MBA from Western and started a consulting company and built and grew a couple of different consulting companies doing marketing and growth advisory to tech companies. And around twenty thirteen, the world's first Bitcoin ATM was launched in Vancouver, where I'm where I live. And it was a big, exciting event in the tech scene. And everybody was going to see this first-ever Bitcoin ATM. And I went down, had a look and said, wow, that's pretty cool technology. And there was a guy there named Mitch Demeter who was actually launching that machine. And funny enough, it got me interested in crypto started paying attention. I got into the space in about twenty seventeen with Netcoins and one of the very first hires I made was Mitche Demeter, the guy who opened that Bitcoin A.T.M, and he's now the president of the Netcoins division of big digital assets. So, you know, it's it's an exciting place to be. And I couldn't be happier that I ended up here in the crypto world.

 

Manseeb Khan : [00:02:48] Yeah, it's it's kind of crazy how things worked out in that unheard of. Like, who would have thought that you'd meet the guy that first launched Bitcoin ATMs and then later down the line you're like, hey, you know what? Let's make something. Let's make something together.

 

Mark Binns: [00:03:02] I think he was so successful. He put those ATMs all over the world and he started an early crypto exchange called Bitcoiniacs and sold those and retired. And I had to convince him in twenty seventeen. I said, come on, give out a retirement, get back in the game. Crypto is getting exciting again. Like you're right. Let's do it.

 

Manseeb Khan : [00:03:20] No, it's honestly it's a very it's an amazing move on your end.  So when you talk about compliance first crypto. Right. Why is compliance so important in crypto now that now that crypto is getting more attention, as it seems like by hour?

 

Mark Binns: [00:03:37] Yeah, absolutely. Compliance is important to protect the retail investor, the institutional investor. But the little guy, that's sort of why there is rules in financial services all over the world and it's for protection. So if you're buying Bitcoin on an exchange, you're spending two hundred dollars as an individual, that might be a really important two hundred dollars to you. You don't want to find out that that exchange was actually a pyramid scheme or something and fraudulent in your your two hundred dollars of the bitcoin disappears. So compliance isn't there to try to de-anonymize the blockchain or anything of the sort. It's there to protect the endpoints, which are usually the exchanges and the investors in the ecosystem, and make sure that the companies that are taking their money are are legit. And it also helps law enforcement. So we make products at Blockchain Intelligence Group that help law enforcement investigate crypto crime. And if you have these tools that will reduce the likelihood people will commit crimes and they know there is law enforcement, there's rule of law. So all of it really ties together for protection of people in the ecosystem. And, you know, there's a great market opportunity for us in that space by being leaders in the regulated and the compliance side of crypto.

 

Manseeb Khan : [00:05:01]  Yeah, it's actually very amazing to see we're going on three years of having Fintech Fridays, and like if honestly, if I had you on two years ago and we talk about regulation and like all government getting involved, like honestly, like it was really a joke because like it was these are conversations just now starting to happen. But really there was no headway. There was no direction. But now, you know, with Blockchain intelligence, what you guys are doing with law enforcement, even with Secret Service in and of itself, we've come so far and it's only the beginning. And that that to me is just incredible and also wild at the same time.

 

Mark Binns: [00:05:37] Yeah, absolutely.

 

Manseeb Khan : [00:05:38]  So Bitcoin is back in the news. I mean, people people thought I was going to crash, you know, people I've had my group chats have been blowing up my friends are like what's going on, like what are we doing? you told us to put money in this? So can you just walk us through what's going on with Bitcoin right now and like, what's your take on it?

 

Mark Binns: [00:06:01] The big thing happening in Bitcoin and crypto overall overall right now is institutional buy in. This is what's changing the fall of twenty seventeen crypto on its last run before the current one, when Bitcoin went up to nineteen thousand USD, and then it turned around and went all the way back down to something like thirty five hundred. That was a total retail rally. So that was small investors buying small amounts of bitcoin. The rally that happens is happening now since about mid last year and particularly the early stages of twenty twenty one is because of institutional involvement. It started with PayPal saying that they were going to get involved in crypto and let the individual person spend crypto on purchases day to day and then big buy-in on Treasury. That's the other big one. So company called MicroStrategy Nasdaq listed company said we're going to buy four to five hundred million dollars with a Bitcoin and keep our reserve cash in Bitcoin instead of US dollars. And part of that is because of the money printing going on in the US dollar, the Canadian dollar, the pound tied to the pandemic and covid. There's a huge lack of store of value in fiat currency right now. So they said we can do better, we're going to put this money into Bitcoin and we believe that will give us better returns. And then people started wake it up because it was half a billion dollars in a Nasdaq listed public company. And then Square went out and bought fifty million dollars. And That's Jack Dorsey, founder of Twitter, a lot of attention on it. And then it started a bit of an institutional rally where companies realized, oh, yeah, that might be a good store value. And just last week, Tesla bought one point five billion dollars worth of crypto to just a store on their balance sheet instead of holding it in US dollars. The current rumor is that Apple might actually step in and start buying Bitcoin on its balance sheet. And this is the difference is now an institutional investment rally, institutional involvement on spending, institutional involvement on saving. And it's bringing real credibility to Bitcoin in particular. But crypto overall as a store of value.

 

Manseeb Khan : [00:08:12] Mm hmm. So, yeah, no, this is this is actually incredible, right. Because, you know, majority of cryptocurrency is the people that have been kind of rallying behind it, like you said, were many retail investors. Right. People just, you know, seeing what's going on with fiat currency, if you will be able to understand the market a little bit and seeing that, hey, you know, having money in just traditional assets like cash, it doesn't make any sense. Right. Especially now with the pandemic, everything is kind of a lack of a better word is going to shit. You know, they need to have more control of their money. Right. So cryptocurrency is a great place to do it. So what's BIGG Digital's play in this right now?

 

Mark Binns: [00:08:52] It's a two-pronged approach. So first of all, yeah, we have Netcoins. Right. Which is our exchange. And people need to get into crypto. You need an onramp. So Netcoins is an on-ramp. You can email money, wire money, bill pay money into the platform, traditional fiat currency. And with that, you can buy crypto, you can buy your bitcoin, Litecoin, Ethereum, whatever you're looking for. So as adoption is rising, values are rising. Investors looking to access the space can use Netcoin's platform to onramp into the space. And with blocks intelligence group, it's the law enforcement side. So the more involvement the everyday consumer has in crypto, the unfortunately, the more crime will tend to rise, the more use of crypto through the ecosystem. There will be just like the crime. There will be crime involving crypto and our tools are extremely valuable. Some of the only tools in the world that you can use to properly track the movement of crypto through the blockchain so you can do law enforcement. So our customers are everyone from the US Secret Service down to Singapore Police Department, Hong Kong police department. Canadian law enforcement and we're helping market participants stay safe.

 

Manseeb Khan : [00:10:06] Yeah, and that's one of the biggest, I guess, knock on crypto is the fact that, you know, criminals use it, terrorist organizations use it like you can you know, you can put money in today, and then tomorrow it's gone. Right. That's the fact that you guys are spending a lot of time and energy to work with law enforcement of some countries to make sure that's not the case and to make sure that it is accessible for everybody because we're having new investors come in by the hour and to make sure that the money just doesn't disappear. That in and of itself is very incredible.

 

Mark Binns: [00:10:39] Yeah, thanks. I mean, it's a fast-moving ecosystem, it's growing quickly, it's changing every day. And again, we want to be part of the future and the growth and the prosperity of the industry. So we're doing our part.

 

Manseeb Khan : [00:10:54] Yeah, that's awesome. So, you know, you mentioned what with one of your pronged approach is you have you know, you're having more and more people invest in crypto. What is your take on these Meme coins, such as dogecoin? Right. You see it, Elon Musk's tweet out the wazoo about, you know, like going to the moon. I'm getting my friends literally just moon emojis and rocketships emojis every morning when I wake up, like, what's your take on that? You see, I guess organizations like yourself later on having like meme coins on your sheets for people to buy?

 

Mark Binns: [00:11:32] Well, we it's an it's exciting, I guess, is what you would say. I mean, the meme coins bring a little bit of excitement to the industry. They certainly create interest. They get people talking. They get dogs. Images of dogs flying on rockets to the moon sent around. Elon is waking up and I'm tweeting about it. It's creating PR and awareness for space. And that's the part I like about it. It's getting more people going. What is this thing about? Oh, it's crypto or what is crypto. Right. And getting more people involved in the ecosystem and paying attention, whether there's a real future for these coins or not, it's very up to debate. I mean, buying Dogecoin right now is a lot like going to the casino, right? It could triple tomorrow. It could also easily get cut in the third tomorrow. Right. It's based on nothing but speculation. And there isn't a traditional custody for a lot of these meme coins and coins. What I mean by that is a proper institutional grade, cold storage, insurance, etc. So because of that, they won't be adopted the same way as a Bitcoin Litecoin, Ethereum will be most likely. So the jury's out on where they go. I think they're interesting for the excitement of the space, but I certainly do not believe they're a safe bet for a store of value. They're much more like a lottery ticket.

 

Manseeb Khan : [00:12:57] Yeah, of course. Yeah. I think you got a really good point. They do bring an amazing amount of attention to it. Is it the right kind of attention? I mean, the jury's still out on that, right? Because it's still a very ever-expanding and rapidly growing space. But the fact but like all attention is good attention at this point, especially in a space where the more people, the more eyeballs that we can get on the space, the better, because that we can show. Yeah, you know, like there's dogecoin, there's everything else. But there are so many other amazing, like companies out there that that are just using that using crypto for the greater good. Right. Be it through loans, be it through buying a house, just like the tech aspect of what you can kind of build on top of these cryptocurrencies. That in and of itself is very amazing. So kind of tying back to what I previously I was like. So we have companies like Tesla with Tesla-like you said, square of rumors of Apple, you having all these big names, you know, take some of the cash reserves and put into cryptocurrency. Right? Do you see more big brands doing the same thing and do and I guess and secondarily the fact that they would be doing the same thing? Do you think having these big companies? Own cryptocurrency, you think that's going to push the government or speed up the government regulation when it comes to cryptocurrency?

 

Mark Binns: [00:14:24] Yeah, absolutely. So first and foremost, I think there's going to be continued adoption of large corporations, public companies, private companies, insurance companies, you name it, buying crypto. I think Tesla's the start. There is the rumor Apple will buy crypto for the balance sheet. If Apple does buy every publicly traded company, the United States will have free reign to do the same, just sort of like no one gets fired for buying. IBM was the same back in the day. Now it's like if you say, Hey, Apple, Apple bought Bitcoin and you're the CFO of a public company traded on the New York Stock Exchange or the Nasdaq, you can do it, too. Now, you can say, look, Apple did it and they're one of the most reputable companies in the world. So it's not a fly by night type of decision. They truly believe in the store value. They wouldn't do it. So I think you will see a continued adoption. You're going to see more and more insurance companies doing it. MassMutual about one hundred million dollars. And someone said, why so much? And the CEO is quoted as saying, well, that's a tiny amount. We manage billions. One hundred million. It's just a test. So you're going to see a lot more adoption of crypto on balance sheets. I truly believe that there's even discussion that the bond market might move towards crypto underlying assets of the trillion-dollar bond market, which is supposed to be sort of the longer-term stable store of value for Fiat, could start taking positions in crypto or crypto, could supplant the bond market or supplement the bond market. So I think that is all coming. I really do believe that. And that's why you're going to see a continued increase in the value of their currencies, namely Bitcoin because when you have that kind of adoption is only ever going to be twenty-one million Bitcoin. So you'll expect to see a continued rise in the valuation as demand goes up. The supply is not changing.

 

Manseeb Khan : [00:16:19] That's. Yeah, I agree with you. There's always I always forget that the sort of finite amount of bitcoin because the prices have skyrocketed. Oh yeah. There's only so much bitcoin that you can purchase. So why would a company want to put the cash reserves in crypto? I mean, aside from big names buying into it, I guess like from a company perspective, like, you know, you being a CEO of a company, you having balance sheets you have in cash reserves, why why would companies put their money in cryptocurrency then cash?

 

Mark Binns: [00:16:51] I think there are two reasons. No. One is truly a store of value. It's like putting your money in an interest account except for an interest account might make you a percent or half a percent a year. Whereas you look at Bitcoin, it's been the best performing asset over the past one to five and 10-year time horizons. If you put it in to keep it and feel it. All you're seeing right now is a continued printing of money by world governments, US government, the Canadian government, the Canadian US governments have printed more money this year than they did in the last hundred years combined. And that is going to be incredibly. Bad situation for the value of those dollars, right, long term. So as a corporation, it's just a smart, safe place to keep your financial reserves. So they're buying power, stays where it is or grows as opposed to shrinking. So that's I think that's a big part of the secondary part is there are some companies using it as a way to make their company more valuable in the eyes of investors. So MicroStrategy for sure, but crypto, so people would buy MicroStrategy stock as a proxy for owning crypto or owning a bitcoin and crypto miners valuations, are generally based on how much Bitcoin they're holding on their balance sheet, or hodling, as they say, and other regular companies can do the same thing. You can buy Bitcoin, have it on the balance sheet. And if you're a publicly traded, people will buy into your company because they know it'll be worth more in the future for them today because it has Bitcoin on the balance sheet,

 

Manseeb Khan : [00:18:28] Of course. Yeah, that makes sense. You know. You know, it reminds me of talking to like we had we've had VCs on the on previous episodes. And of one of the things that they've mentioned was like how you have companies now they'll put like cryptocurrency and like AI got their pitch just to name just to see more value. Like even though the company has nothing to do with AI, there's no AI involvement whatsoever. There's no cryptocurrency involvement. There's no blockchain involvement whatsoever. But the fact that they have these buzzwords in their pitch like it's it just increases their value.

 

Mark Binns: [00:19:05] You know, there was a big twenty seventeen thing. I remember the juice company Iced Tea Bottling Company of New York, USA became the blockchain ice tea company or something. They literally just put it in their name and they got all this attention to this like value. But yeah, just a PR stunt that one.

 

Manseeb Khan : [00:19:24] So how do you see I mean, now we have big companies coming into the market? All of us are getting more retail investors day to day. How does this accelerate innovation in the space? And I guess what innovation do you see happening in the space?

 

Manseeb Khan : [00:19:41] Well, innovation comes from corporate involvement, right? So most innovation has to do with a company that's looking to create a financial opportunity for themselves through some new technology. And then you get more and more corporations involved in whatever way with crypto and aware of it, the more likely they're going to drive forward and create innovations and put investment into the space. You look at companies doing things like helping build the Lightning Network for faster transaction processing and payments on top of Bitcoin. That's coming because more and more corporations are involved. So I really believe that corporate involvement in the institutional involvement we see now will put more money into innovation and searching for more ways to exploit the opportunity around crypto, which will just naturally move the market forward.

 

Manseeb Khan : [00:20:30] Mm hmm. Yeah, no, I mean, that makes total sense. Or you need these big movers and shakers in the space to move and shake anything at all. Right. Like, you know, the Lightning Network is something I've been hearing about for like two years now, and it's still going. There hasn't been any any any system in place yet. So it definitely makes it makes a lot of sense, I guess. Where do you see just crypto as a general heading in the future? Do you see I mean, Do you see like your kids or any of these Tik Toc kids using cryptocurrency. Like where do you where you see cryptocurrency heading?

 

Mark Binns: [00:21:11] And I see a general adoption both in payments and also in-store value. So a cross between gold or people own it just to have it as is value that will increase in the future. And Fiat which people are using to buy goods and services. I hear about lots of parents now that pay their kids allowance and crypto because they believe that I mean, you could give them twenty dollars and in three years it'll still be worth twenty dollars, or you can give them twenty dollars worth of Bitcoin that in three years will probably be worth one hundred dollars. That's theory. So you see a movement of all sorts of. Yeah. Investment, payment, daily use. I think it really is going to infiltrate our lives. As you see PayPal making it available to twenty million Americans to buy goods and services. That's pretty exciting. And you see merchant adoption and acceptance. Now there are all sorts of merchants that will accept payment. Tesla just announced as part of their acquisition of Bitcoin, also that accept payment in Bitcoin for cars. Big corporations are starting to do it. I know Dell does it. Overstock.com does it. I believe Microsoft does it. I think Amazon is. Or talking about it, so as soon as people can spend it and in the meantime when they're not spending, I believe they'll get a bigger return on their investment than sitting in a fiat currency. It'll just be a self-perpetuating situation. So I really do see crypto over the coming years becoming part of your daily life financially.

 

Manseeb Khan : [00:22:51] Yeah, no, I mean, paying me the allowance and crypto, that's a very wild, wild, a very amazing idea. And it makes sense. I like living in like, you know, living in a post covid world. It makes sense that you'd want to invest in something digital. Right. You want to make sure you have at least as many touchpoints as you possibly can. Cash is one of them. Right. Not like the ATM, taking it out, touching. It just so many light touchpoints, like, I don't want it. I don't want my change back.

 

Mark Binns: [00:23:18] Like, take it. Look, I don't want I have friends who gave their kids crypto as Christmas presents on ledgers. And I have there are all sorts of examples now of the use of crypto in the store, crypto becoming part of everyday lives like two and three-year-olds. I have crypto in my kids. RESP's is now the new financial instruments where you can buy it in RSPs and TFSA and RESPs and yeah, like basically savings accounts that are tied to crypto with underlying derivative assets. It's pretty exciting.

 

Manseeb Khan : [00:23:53] Yeah. I mean especially like tiebacks where you sort of like if the bond market summerlike has a little bit of crypto into it and oh my goodness, I know my grandmother would be super happy with all the bonds that she was buying me if I could change them over to crypto.

 

Mark Binns: [00:24:09] There you go. Yeah. Awesome. So, Mark, is there, you know, aside from everything, what else is aside from Bitcoin and what's going on in big tech? what likes what are the things that you find interesting in the market? What what are the things that are like keeping you up at night or things that you're very excited to buy in the next coming years?

 

Mark Binns: [00:24:35] Yeah, I think it's an I'm excited about the things we don't know anything. Right. So we know what we know. But there's the old saying. You don't know what you don't know. There's there are innovations happening in every corner of blockchain. And I haven't, of course, seen them all. But every day I wake up and see some new novel way to use crypto or new novel technology to crypto. And I don't know where it's going to go. And that's sort of what's exciting. Nothing's changing, really, in the fiat world. Crypto, you're getting things like exchange-traded funds starting in futures trading. And like I talk about people giving it to their kids with allowance, but the technology around payments and processing transactions like the Lightning Network on top of Bitcoin, it's all just moving so quickly that it's as I have friends say, it's hard to sleep at night. You want to wake up every day and see what's changed and what's moving in the news tied to crypto. You're going to see governments get involved. I think there's this move towards central bank digital currencies, which is really just the digitization of their existing currencies, not true crypto occurrences that are decentralized. But I do think you will see governments start to get involved in true crypto decentralized currencies. There's an example of a small town in Ontario that you can now pay your property tax and get to it. Yeah, Innisville, all they do is take the crypto and sell it immediately and put the cash in the bank. But it does open up more cool uses for the technology. And you're going to see more and more governments getting involved one way or another. And that's just going to help accelerate the adoption.

 

Manseeb Khan : [00:26:16] Yeah, no, I mean, I'm excited to have more. Yeah, I'm excited to. You know, when we open back up and so I can travel around Canada, I got to just pull up in like a small town in Alberta and just pay for my Tim Hortons coffee in the of Bitcoin that I think that they'll be amazing.

 

Mark Binns: [00:26:33] You're going to tap your Visa card and it's going to withdraw instead of fiat it from an account. It's going to basically convert some crypto into payment instantly and give it to the guy at Tim Hortons.

 

Manseeb Khan : [00:26:45] Yeah, so that'll be amazing. Mark, thank you so much for sitting down today. What would be the best way to either get in touch with you or even get in touch with BIGG?

 

Mark Binns: [00:26:57] Yeah, you can check out our website, Bigg Digital Assets dot com, and be more than happy to hear from anyone mark@biggdigitalassets.com is my email address. Happy to talk about crypto. Happy to talk about BIGG and reach out any time.

 

Manseeb Khan : [00:27:11] Awesome. Thanks so much, Mark.

 

Mark Binns: [00:27:12] My pleasure.

 

Outro : you've been listening to Fintech Fridays brought to you by NCFA and partners. Tune in weekly for the latest fintech Friday podcast by subscribing to this channel. The National crowdfunding and Fintech Association of Canada is a non-profit actively engaged with social and investment fintech sectors around the globe and provide education research industry stewardship services and networking opportunities to thousands of members and subscribers. For more information please visit ncfacanada.org. Oh yeah.

 

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NCFA Jan 2018 resize - Fintech Fridays EP50:  Compliance to the Moon 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

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First Major DeFi Hack of the Year Explained

The Defiant | Owen Fernau | Feb 5, 2021

yearn finance hack step 1 of multiple - First Major DeFi Hack of the Year Explained

The latest on the Yearn Finance exploit below.

Yearn Finance, the yield aggregation protocol founded by Andre Cronje, has been hacked. One of the platform’s so-called vaults lost $11M, and the attacker got away with $2.8M.

It’s the first DeFi hack of the year, after $100M worth of attacks in the sector last year, according to a report by Ciphertrace. About half of the exploits, including this one from Yearn, have used flash loans (loans which don’t require collateral as long as they’re returned on the same block).

While the Yearn team has yet to release a postmortem, the attack’s nature could be categorized as an arbitrage. The hacker used a flash loan to borrow millions in crypto assets, use those assets as collateral to borrow more crypto, then repeatedly deposited those borrowed assets in a Yearn pool. The exploit consisted in manipulating the Dai rate in the pool, and benefitting from that rate by exchanging the liquidity provider tokens earned for stablecoins.

See:  Are Stablecoins Better Than Bitcoin?

Most if not all DeFi attacks involve complex financial engineering, manipulating token prices, or liquidity in token pools, to get crypto at extremely favorable rates. It highlights the need for code in DeFi protocols to be ironclad, which is often far from reality. These projects are sometimes hacked together over the weekend and released without formal audits or tests —a “test in prod” strategy which has been championed by Yearn’s founder himself.

Step by Step

Here’s how it went down.

The attacker used flash loans to borrow 116K Ether from margin trading platform dYdX, and 99K from lending platform, Aave.

They were then able to use 215K ETH, worth ~$342M, as collateral to borrow 134M USDC and 129M DAI from lending platform, Compound Finance.

The attacker then added all of the borrowed USDC and 36M of the borrowed DAI to Curve Finance’s 3-token USDC/DAI/USDT pool. They then withdrew 165M USDT from the Curve pool.

See:  Fidelity-backed crypto security startup Fireblocks launches ‘Secure Asset Transfer Network’

Then the attacker repeated the strategy of depositing the remaining 93M DAI, borrowed from Compound into Yearn’s yDAI vault, adding the 165M USDT back into the Curve 3-token stablecoin pool (3pool), withdraw 92M DAI from the yDAI vault, then withdrawing the 165M USDT again from the Curve pool.

Each time the hacker executed the repeating part of the strategy they gained more Curve’s DAO Token, which they later converted to stablecoins, eventually netting them $2.8M, and losing Yearn’s vault, for whose deposits are now disabled, $11M.

Under the Hood

Key to understanding the exploit is that Yearn’s yDAI vault automatically deposits DAI into Curve’s 3pool, which the attack had already heavily saturated with USDC and DAI. In adding the third asset, USDT, to the pool, DAI is devalued, according to Curve’s protocol mechanics.

After withdrawing the DAI from yDAI, at a small loss due to the devaluation, and also withdrawing the USDT, USDC, and other DAI from the 3pool, the attacker reaps the extra rewards of Curve’s DAO Tokens for providing liquidity during a time when the DAI rate strayed from the pool's other two assets.

Continue to the full article --> here

 


NCFA Jan 2018 resize - First Major DeFi Hack of the Year Explained 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

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