{"id":5194,"date":"2020-04-17T15:42:52","date_gmt":"2020-04-17T15:42:52","guid":{"rendered":"https:\/\/lgca.uk\/?p=5194"},"modified":"2020-05-22T11:29:56","modified_gmt":"2020-05-22T11:29:56","slug":"blockchain-based-compliance","status":"publish","type":"post","link":"https:\/\/lgca.uk\/el\/blockchain-based-compliance\/","title":{"rendered":"Blockchain-Based Compliance"},"content":{"rendered":"<p class=\"has-large-font-size\"><strong>Blockchain-Based Compliance: Financial Sector\u2019s Dream or Nightmare?<\/strong><\/p>\n\n\n\n<p>There is a plethora of articles praising\nthe impending advent of blockchain-based regulatory compliance as a new\nstandard for the financial services industry, expounding how the distributed\nledger will save tons of time, money and effort to businesses and watchdogs\nalike. <\/p>\n\n\n\n<p>Beyond any doubt, there are numerous\nbenefits to blockchain technology being used in the regulatory compliance realm.<\/p>\n\n\n\n<p>It will fetch watchdogs\u2019\nreal-time regulatory oversight, proof of process and immutable records, making\nit easier to avert fraud and deception. If we take the notorious Bernie Madoff\u2019s\nPonzi scheme as an example, the $20 billion damage to investors would have been\navoided had a clear \u2013 and immutable &#8211; record of immutable facts and figures\nbeen in place.<\/p>\n\n\n\n<p>Firms will benefit too, especially when it comes to time &#8211; and resource -consuming KYC and AML processes related to taking on new clients. As Sam Mire in his article for the Disruptor Daily notes:&nbsp; \u201cWith blockchain, the future of onboarding seems much simpler. With a database of verified client data in existence, secured and shareable among different institutions, the time it currently takes to collect and authenticate data would be reduced significantly&#8230;\u201d<\/p>\n\n\n\n<p>Blockchain-based compliance, if\nuniversally and properly implemented, is supposed to make the financial\nservices sector super-transparent and even more tightly controlled. <\/p>\n\n\n\n<p><strong>Perfect?<\/strong> <\/p>\n\n\n\n<p>For adherents of this Orwellian, transparency-centric\nreligion that reigns the financial business of today &#8211; perhaps perfect.<\/p>\n\n\n\n<p>But, not so perfect for market\nparticipants who will be deprived of the remaining leeway in operating their\nbusinesses, nor for their clients whose smallest financial transactions will\nbecome immediately known to an unspecified number of \u201cdifferent institutions\u201c.<\/p>\n\n\n\n<p>It is indisputable that the\nprogress of blockchain technology will result in faster, more efficient and broader\nimplementation in the regulatory compliance area.&nbsp; It is paramount to find an approach that will\npreserve discretion and flexibility that have been characteristic of the\nfinancial services sector since its very origin.&nbsp;&nbsp; &nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>Blockchain-Based Compliance: Financial Sector\u2019s Dream or Nightmare? There is a plethora of articles praising the impending advent of blockchain-based regulatory compliance as a new standard for the financial services industry, expounding how the distributed ledger will save tons of time, money and effort to businesses and watchdogs alike. Beyond any doubt, there are numerous benefits [&hellip;]<\/p>","protected":false},"author":1,"featured_media":6532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false},"categories":[55],"tags":[89,109,86,114,113,110,115,111,112],"_links":{"self":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/posts\/5194"}],"collection":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/comments?post=5194"}],"version-history":[{"count":0,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/posts\/5194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/media\/6532"}],"wp:attachment":[{"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/media?parent=5194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/categories?post=5194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lgca.uk\/el\/wp-json\/wp\/v2\/tags?post=5194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}