/regulation & compliance

News and resources on regulation, compliance, legal and governance issues for banks and fintechs.

Money20/20: Quantum and generative AI together is ‘scary’ - ING

At Money20/20 in Amsterdam, Finextra chatted to ING’s head of corporate strategy & innovation Jeroen Plag about how the bank has merged the innovation and strategy departments bringing initiatives closer to the business like CoorpID and Blacksmith and is now focusing on building new assets.

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SEC sues Coinbase
Ketharaman Swaminathan

Ketharaman Swaminathan

  I'm amazed how SEC approved the public listing of CoinBase a few years ago when it knew that CoinBase's business model was illegal. If it's a question of jurisdiction, one would expect some other US govt agency to vet the legality of a business before it's allowed to sell shares to the man on the street.  Learning that other companies in illegal businesses like cannabis, gaming and rideshare were allowed to go public in USA only increases my wonderment. 
SEC sues Binance and CEO Changpeng Zhao
Ketharaman Swaminathan

Ketharaman Swaminathan

  If crypto / DeFi firms put the same controls in place as banks, how will they achieve their charter to disrupt banks / TradFi?:)
SEC sues Binance and CEO Changpeng Zhao
Jim Bray

Jim Bray

  "Unfortunately," it adds "the SEC’s refusal to productively engage with us is just another example of the Commission’s misguided and conscious refusal to provide much-needed clarity and guidance to the digital asset industry". This is a bullshi* statement. All of the players in the Bitcoin industry had many opportuntities to put the same controls inplace as banks have to to be compliant. Now they are crying because their Ponzi scheme is comming unraveled. 
In the Blink of an Eye: How the Digital Age Intensifies the Risk of Bank Runs
Ketharaman Swaminathan

Ketharaman Swaminathan

  Most banks in USA - including SVB - offer virtually 0% interest on checking accounts. Moving money to term deposits will increase their interest outflow, which will dent their profits, which will hammer their share price, which will cause crisis of confidence, which will end up causing more-or-less the same problem as we have now, just from a different angle.  To cite Matt Levine, the key disconnect is that banks believe that banking is a Theory 2 business in practice even though it's contractually a Theory 1 business. In the past, their belief has been vindicated. Only time will tell whether they will see the failures of SVB et al as proof that banking is really a Theory 1 business in practice or they will shrug those failures off and continue to believe that banking is a Theory 2 business.