1. What is RegTech?
RegTech is the management of regulation, compliance, reporting and monitoring through technologies like big data, data mining, artificial intelligence and blockchain to provide robust, reliable and effective solutions.
The technologies offer data on money laundering activities and help to reduce the risk of financial fraud. However, regtech is facing some challenges like operational barriers, lack of recourse, high cost and cumbersome process of automating manual procedures.
After the global financial crisis, regulators started to focus more on the compliance element in the business and thousands of rules and provisions were introduced all around the world. According to the Financial Conduct Authority (FCA), about £189.8 million has been paid against the regulatory violations. The cost of doing compliant business is higher, which is why all global regulators are showing interest in blockchain technology for regulatory purposes.
Whether it is a big bank like HSBC or a small organization, the cost of compliance is high, and getting higher with time. Currently, all the global financial regulators are putting efforts to collaborate with organizations that employ software-as-a-service (SaaS) or cloud computing technologies to assist businesses in complying with laws more efficiently and cost-effectively.
This article aims to discuss various regtech use-cases in compliance and the application of blockchain technology in the regtech ecosystem.
Continue reading: https://cointelegraph.com/explained/what-is-the-importance-of-blockchain-in-the-regtech-ecosystem
RegTech is the management of regulation, compliance, reporting and monitoring through technologies like big data, data mining, artificial intelligence and blockchain to provide robust, reliable and effective solutions.
The technologies offer data on money laundering activities and help to reduce the risk of financial fraud. However, regtech is facing some challenges like operational barriers, lack of recourse, high cost and cumbersome process of automating manual procedures.
After the global financial crisis, regulators started to focus more on the compliance element in the business and thousands of rules and provisions were introduced all around the world. According to the Financial Conduct Authority (FCA), about £189.8 million has been paid against the regulatory violations. The cost of doing compliant business is higher, which is why all global regulators are showing interest in blockchain technology for regulatory purposes.
Whether it is a big bank like HSBC or a small organization, the cost of compliance is high, and getting higher with time. Currently, all the global financial regulators are putting efforts to collaborate with organizations that employ software-as-a-service (SaaS) or cloud computing technologies to assist businesses in complying with laws more efficiently and cost-effectively.
This article aims to discuss various regtech use-cases in compliance and the application of blockchain technology in the regtech ecosystem.
Continue reading: https://cointelegraph.com/explained/what-is-the-importance-of-blockchain-in-the-regtech-ecosystem
