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Saturday, September 25, 2021
Home News Global Finance Regulators Eye Blockchain for Regulation

Global Finance Regulators Eye Blockchain for Regulation

As reported by Reuters, regulators around the world are moving closer to regulating the financial technology sector, which includes Blockchain technology, to make sure the sector’s rapid growth does not present risks to the financial system.

The Financial Stability Board (FSB), made up of central bankers, regulators and finance ministry officials from the Group of 20 economies, met in Tokyo on Thursday has agreed on a framework for categorising different components of fintech and assessing their potential risks.

Many banks are already investing heavily in fintech to avoid missing out as is evident by the 40+ banks who have joined R3 in a consortium to explore Blockchain.  Analysts at Citi said this month that investment in fintech had grown from $1.8 billion in 2010 to $19 billion last year, mostly in payments systems.

They are looking at fintech partly in response to uncertainty over whether it will “disrupt” traditional banking.

From Reuters:

FSB Chairman and Bank of England Governor Mark Carney told a news conference broadcast from Tokyo on Thursday that the FSB did not have fundamental concerns about fintech and members wanted to look for opportunities to apply it.

“The important thing for us as members of the FSB is to be moving in parallel with these developments and not be stifling innovation, but being able to apply them in a way that improves the resilience of the system,” Carney said.

He said policy intervention by other authorities such as in competition, conduct and consumer protection, would need come before any financial stability considerations.

Richard Kasteleinhttps://www.the-blockchain.com
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, 'The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, the Netherlands where he has set down his anchor to raise a family and write. Founder and publisher of industry publication Blockchain News (EST 2015) and director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He has written over 2500 articles on Blockchain technology and startups at Blockchain News and has also published in Harvard Business Review, Venturebeat, Wired, The Guardian and a number of other publications. Kastelein has an Honorary Ph.D. and is Chair Professor of Blockchain at China's first blockchain University in Nanchang at the Jiangxi Ahead Institute software and Technology. He has over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission's SME Instrument programme as a startup assessor and as a startup judge for the UK government's Innovate UK division. Kastelein has spoken (keynotes & panels) on Blockchain technology at over 50 events in 30+ cities.
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