We are honoured that our CEO, Chye Kit, was invited to speak at the 3rd FATF/EAG FinTech and RegTech Forum, held in China, Hangzhou, from 4–5 September 2018. The forum, co-hosted by Financial Action Task Force (FATF) and Eurasian Group (EAG), was attended by industry professionals from different regions of the world, including global regulators, representatives from the FinTech and RegTech sectors, financial institutions, FATF members and observers.
The forum aims to provide a platform for a constructive dialogue and support innovation in financial services while addressing the regulatory and supervisory challenges posed by emerging technologies. We are glad that the purpose of this forum runs in parallel with our business vision and mission to promote wider use of RegTech solutions. Chye Kit shared with the forum his views on the trends and developments in the RegTech and FinTech space including developments in the cryptocurrency area.
Chye Kit presented to the audience the vision of Cynopsis and traceto.io to promote Regulatory Inclusion by bridging regulatory gaps between the real and virtual worlds. We utilise functional technologies to automate, digitise and tokenise in order to enable small medium enterprises globally including FinTech and Cryptocurrency start-ups achieve better regulatory and compliance outcomes.
Regulatory and Cryptocurrency perspective of ICOs
Issues surrounding Anti-Money Laundering (AML) and Know-Your-Customers (KYC) have never been new to the world, especially the banking and financial services sector. With the rise of the virtual currencies including prevalence of Initial Coin Offerings (ICOs), regulators around the world have adopted a variety of approaches ranging from outright ban to more positive treatments.
Similarly, many cryptocurrency start-ups are led by founders who are technologists and entrepreneurs, may not be familiar with AML/CTF legislations leading to the misconception that AML/CTF legislations do not apply to them as long as they are not regulated by any financial regulator. These start-ups may also lack the resources to hire experienced compliance personnel to manage regulatory risks.
How can RegTech help?
Once a consistent regulatory approach globally is reached and an efficient application of requirements are met by smart use of technology, it should reduce the “pain-points” of compliance for cryptocurrency start-ups, and in turn, increases the “willingness” to comply rather than to try and get-around regulation.
Building a robust KYC framework
Chye Kit further shared about traceto.io’s KYC framework and its intention to build a decentralised KYC protocol for the cryptocurrency ecosystem that include four fundamental questions to be addressed.
1. Who are you?
User determination and verification through submission of relevant documentations such as passport, driving licence etc.
2. Who are you not?
Uncovering political exposed persons (PEPs), sanctions or terrorists and profiles relating to adverse media.
3. Are you still who you say you are?
Performing ongoing due diligence as identity and client activities may change over time.
4. What did you do?
Monitoring transactions for suspicious activities, identifying source of funds.
About Cynopsis Solutions
Cynopsis Solutions Pte Ltd is a RegTech company founded in 2014 and based in Singapore. We focus on anti-money laundering and counter terrorism financing softwares to automate the manual process and digitise the analogue records and documentation. Our Software-as-a-Service (SaaS) products are deployed in the cloud (Amazon Web Services) using industrial strength encryption, security technology and architecture design to ensure confidentiality and privacy of data stored. The unique proposition of combining our deep regulatory and Compliance expertise with smart use of functional technologies allows us to offer very cost effective anti-money laundering and counter terrorism financing solutions to smaller and medium size financial institutions, professional services companies as well as FinTech start-ups.
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About traceto.io
traceto.io is a decentralised Know Your Customer (KYC) network that provides an inclusive KYC solution to cryptocurrency and blockchain product companies by fusing Smart Contract and Artificial Intelligence technologies. Leveraging on over 5 decades of experience in Compliance and RegTech, traceto.io’s vision is to bridge the gap between the real and virtual world KYC processes.
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Website: https://traceto.io/
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LinkedIn: www.linkedin.com/company/traceto-io-pte-ltd/