The Future Coin

Bitcoin

$13,064.85

BTC 2.22%

Ethereum

$417.34

ETH 5.52%

XRP

$0.26

XRP 4.00%

Litecoin

$55.19

LTC 5.24%

EOS

$2.70

EOS 2.82%

  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases
No Result
View All Result
The Future Coin
No Result
View All Result
Home Policy & Regulations

A regulated journey in the cryptoasset world

by The Future Coin
September 15, 2020
in Policy & Regulations
0
A regulated journey in the cryptoasset world
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

Throughout Archax’s journey to create a regulated, global, digitally-native exchange, we have been constantly monitoring the evolution of regulators and regulations throughout the world of cryptoassets – and when we say ‘world’ we literally mean it, as it is a global evolution that is taking place. 

Any business seeking to operate in this new, exciting, ever-evolving world needs to closely consider a few key things though – their business model, their activities and how regulations will affect their own evolution. What instruments do you intend to operate with? What regions do you intend to operate in? What services are you planning on offering? And to whom are you planning on offering them? Once those factors are decided, you can start your journey of discovery.

In the first instance, you need to understand whether the jurisdiction you are looking to be based in considers cryptoassets to be a new instrument type or an existing instrument type on a new technology, and how they are then regulated. For example, Bitcoin may be a new instrument type to some, whereas a digital security may be considered as just an existing security on a new technology. 

Outside of your ‘home’ jurisdiction, you then have the complication of how cryptoassets are defined and regulated in every other jurisdiction in which you intend to operate. Do they cover cryptocurrencies? Do they include securities? Do they cover commodities, currencies or anything else? As an extra complexity, this definitional element will differ by region too.

When this has been done for each jurisdiction, the business can start considering how the chosen business model can operate across borders. For example, as a UK exchange, how can I allow a German issuer to admit their security to be traded on a UK venue, settled in Euroclear and traded between participants from the US and Denmark? 

As one can imagine, trying to search on Google for “Can I trade a German issuance on a UK exchange with participants from the US and Denmark”, would probably yield low results! And anyway, once you throw in the “in a digital security form” too, you are definitely in unchartered territory. At this point, you must dig deep into relevant legislation and regulation, and often approach people in the traditional space to understand how these things operate in the pre-digital world too. When you do this, what you will find is that there is a wealth of information and a good number of knowledgeable people who can help shortcut a lot of these questions. When you strip out the digital element, a lot of these questions have actually been asked before.

Sometimes, going along this journey can feel like you are swimming uphill and that the financial markets are simply just not built to evolve. However, by digging into the detail you can start to really understand how the market operates, where it doesn’t function efficiently and where the opportunities really are. You start to see how the power of distributed ledger technology and smart contracts can really bring about a fundamental and beneficial shift in the way in which financial services and capital markets operate. These improvements and efficiency gains will ultimately result in an increased accessibility to markets for all those looking to raise money, as well as for those looking to invest too. If ever there was a time to be considering improving access to capital markets for companies, it is right now.

Throughout our journey at Archax we have found ourselves often having to look at compromising on where we think the world should go, what the technology is capable of and what regulations and institutions expect. That does not mean that we cannot see a capital markets world with reduced centralised players, increased non-custodial solutions and greater automation. But rather that we appreciate that regulation exists for a reason and that unless those controls can be considered in the new world, the proposed solutions will not gain true mainstream adoption or traction.

Despite the unprecedented challenges of 2020 that we have all felt, it has also been an interesting year for developing an increased understanding of the benefits that digital financial services can bring. And as the regulators see increased digital prominence in society, there has been an increased level of scrutiny on those who operate in the space as well. The Cryptoasset designation in the UK is an example of this, and the recent statements by the Bank of England show that not only are Central Bank Digital Currencies being discussed openly, but also that regulators are starting to realise the risk that stablecoins could bring to financial markets if not regulated properly. 

As with a lot of the innovation in the crypto space, there appear to be cycles of innovation, realisation and, finally, regulation.

For example:

  • Digital securities feel like they have moved through the ‘realisation’ phase and into ‘regulation’.
  • Stablecoins are gradually shifting towards increased regulation. 
  • DeFi is still largely in the ‘innovation’ phase, but there are signs of regulation, such as the recent approval of Aave as an Electronic Money Institution. 

From Archax’s point of view, we do not view regulation as a necessary evil. We think of it as inevitable when operating in the area of financial services. Thinking about how innovation can be structured to work hand in hand with regulations builds a moat in preparation for the time when regulation is more widespread across the cryptoasset world. 

The journey is really only just beginning…

Graham is a qualified accountant, with over 18 years’ experience in financial services. Prior to Archax, Graham was COO, CCO and Partner of Omni Partners, a $1.4billion hedge fund based in London, where he was responsible for all operational activities and compliance.
Before Omni, Graham held several senior operational, finance and compliance roles in the asset management and banking space, including HSBC, Caliburn Capital, Leo Fund Managers and Coutts Bank.
Graham has worked in both digital asset and traditional markets and has been responsible for funds across a wide range of investment strategies – including macro, event driven, long short, systematic and private equity. He has also run operations for an $8billion alternative investments business and has worked throughout his career in various regulated environments, including the FCA, SEC and NFA/ CFTC. Graham has a BA (Hons) Accounting from the University of Bournemouth.

Source link

EDITOR’S CHOICE

 Paul Tudor Jones says he likes bitcoin even more now, rally still in the ‘first inning’

Bitcoin and Altcoins Surging, Ethereum Jumps Above USD 400

Blockchain ETF (BLOK) Hits a New 52-Week High - Yahoo Finance

Indio to host annual State of the City address and business awards program virtually

Anchorage Teams Up with Tokensoft to Bring Wrapped Layer-One Digital Assets such as Zcash (ZEC) to Ethereum

Litecoin Price Daily Timeframe Indicates Strong Uptrend To $65

Best Pick For You

News

  • Altcoin News
  • Bitcoin News
  • Blockchain News
  • Business News
  • Ethereum News
  • Litecoin News
  • Ripple News

Features

  • Market Analysis
  • Opinion
  • Explained
  • Policy & Regulations
  • Top Cryptocurrencies
  • Technology News

Market Tools

  • Market News
  • Price Indexes
  • Bitcoin Price Index
  • Ethereum Price Index
  • Bitcoin Cash Price Index
  • Litecoin Price Index
  • Monero Price Index
  • HeatmapPartner

Cryptopedia

  • Explained
  • Bitcoin101
  • Bitcoin Cash101
  • Ethereum101
  • ICO101
  • Ripple101

© 2020 Coingraph

No Result
View All Result
  • News
    • Bitcoin News
    • Ethereum News
    • Ripple News
    • Litecoin News
    • Altcoin News
    • Blockchain News
    • Business News
    • Technology News
    • Policy & Regulations
  • Markets
    • Market News
    • Market Analysis
    • Price Indexes
    • Top Cryptocurrencies
    • Heatmap
  • Opinion
  • Cryptopedia
    • Explained
    • Bitcoin101
    • Ethereum101
    • Bitcoin Cash101
    • ICO101
    • Ripple101
  • Press Releases

© 2020 Coingraph

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
bitcoin
Bitcoin (BTC) $ 13,043.74
ethereum
Ethereum (ETH) $ 417.44
tether
Tether (USDT) $ 0.999556
ripple
XRP (XRP) $ 0.262504
bitcoin-cash
Bitcoin Cash (BCH) $ 270.91
chainlink
Chainlink (LINK) $ 12.02
binancecoin
Binance Coin (BNB) $ 30.95
polkadot
Polkadot (DOT) $ 4.31
litecoin
Litecoin (LTC) $ 55.06
cardano
Cardano (ADA) $ 0.110207
bitcoin-cash-sv
Bitcoin SV (BSV) $ 169.59
usd-coin
USD Coin (USDC) $ 1.00
eos
EOS (EOS) $ 2.69
monero
Monero (XMR) $ 127.31
crypto-com-chain
Crypto.com Coin (CRO) $ 0.098550
tron
TRON (TRX) $ 0.027291
stellar
Stellar (XLM) $ 0.086267
tezos
Tezos (XTZ) $ 2.23
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 13,043.25
cdai
cDAI (CDAI) $ 0.021028
neo
NEO (NEO) $ 19.04
okb
OKB (OKB) $ 4.84
cosmos
Cosmos (ATOM) $ 5.49
leo-token
LEO Token (LEO) $ 1.26
huobi-token
Huobi Token (HT) $ 4.55
nem
NEM (XEM) $ 0.109392
dai
Dai (DAI) $ 1.01
iota
IOTA (MIOTA) $ 0.290348
vechain
VeChain (VET) $ 0.012227
binance-usd
Binance USD (BUSD) $ 1.00
dash
Dash (DASH) $ 76.47
zcash
Zcash (ZEC) $ 65.97
theta-token
Theta Network (THETA) $ 0.659171
ethereum-classic
Ethereum Classic (ETC) $ 5.67
uniswap
Uniswap (UNI) $ 3.08
maker
Maker (MKR) $ 597.90
omisego
OMG Network (OMG) $ 3.58
havven
Synthetix Network Token (SNX) $ 3.93
celsius-degree-token
Celsius Network (CEL) $ 1.29
filecoin
Filecoin (FIL) $ 24.30
uma
UMA (UMA) $ 8.40
yearn-finance
yearn.finance (YFI) $ 13,926.08
compound-ether
cETH (CETH) $ 8.35
aave
Aave (AAVE) $ 37.63
compound-governance-token
Compound (COMP) $ 99.18
paxos-standard
Paxos Standard (PAX) $ 1.00
ftx-token
FTX Token (FTT) $ 3.93
ontology
Ontology (ONT) $ 0.565412
dogecoin
Dogecoin (DOGE) $ 0.002677
renbtc
renBTC (RENBTC) $ 13,022.95