Recent Cross-Border Fintech: Regulation & the Law 2019 conference highlighted the most promising trends of financial technology services on a global market. The event was hosted in London, on June 6th. Panelists provided the audience with valuable information on the future fintech tendencies.
The conference attracted multitudinous attendance: authorities, organizations and companies related to the subject, and forward-looking investors willing to be in the know of innovations. Various financial bodies, financial service technology startups and industry leaders gathered a forum to bring the future development of technology within the reach.
The conference was divided into four sessions, namely financial innovation and the legal department, Distributed Ledger Technology, Fintech investment and diversity, and legal challenges and the future of Fintech.
On the first session speakers observed the last word in cross-border payments technology, marking the potential of distribute ledger technology in real-time payment exchange and settlement on a world-wide basis in the future.
Along with that they denoted a major problem of disperancy of access to payment accounts in different jurisdictions and distinction in approach of following the Services Directive 2 in EU.
Regardless aforementioned issues, innovations in financial services technology are urgent in order to advance banking payment platforms to the progress of time. Improvement will cause readjustment of financial bodies to needs of future market.
On the second session speakers from International Swaps and Derivatives Association (ISDA) and European Bank for Reconstruction and Development (EBRD) speculated pros and cons of smart contracts in automation security issuance. On the one hand, innovation will increase capability of the platform. On the other hand, customizing smart contracts implies ponderable obstacles.
In this relation, it is crucial to establish mutual understanding of the process between lawyers and technologists to ensure innovations and regulations accordance. Strong partnership of financial technology industry and juridical institutions is indispensible, for it is needed to interpret contracts, saving their original meaning in the code.
The United Kingdom Jurisdiction Taskforce started advising on legal aspect of smart contracts, for it is still difficult to depicture the degree of smarting process. However, discretion or termination of the contract is still expected to be made by a person.
The third session denoted that the constant changeability of laws and regulations challenges technology to be always up-to-date, which implies a thorough legal alert for the next several years to create a competitive product.
For example, such operations as cryptocurrency exchanges, e-wallets will align with regulations of the Fifth EU Money Laundering Directive. Creation of new digital assets classes by means of initial coin offerings is on the consideration stage to be included to the new laws in UK.
Divergence in regulations concerning the cryptocurrency in juridical institutions across borders causes perceptible difficulties. The Financial Stability Board suggests keeping an eye on the new regulatory tendencies and possible omissions.
Despite all concerns, representative of European Banking Authority emphasized on sandboxes role as reliable and essential mean in establishing connections between lawyers and technologists.
Panelists of the last session represented financial service technology methods as valuable contribution in regulatory compliance, for instance, using artificial intelligence to fight money-laundry and other deceptive practices.
Due to the cross-border cooperation of Financial Conduct Authority, foreign banks and the Bank England, improved digital regulatory reporting affords companies to keep up with the latest changes in laws and fit in current demands.
The conference indicated a strong need in all-level collaboration between financial technology industry and juridical institution. Common effort will guarantee prosperous future for the technology both at national and global market.