2020 Digital Money Forum
January 7, 2020, Las Vegas, USA
2020 Digital Money Forum
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BlockChain Overcoming Obstacles Starts with Regulation
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About speakers

Michael Casey
Chief Content Officer at CoinDesk
Combiz Richard Abdolrahimi
Government & Public Services at Deloitte
Michelle Bond
CEO at Association for Digital Asset Markets (ADAM)
Jason Brett
Founder at Value Technology Foundation
Tom Maxon
Co-Founder & CEO at Claimyr
Lisa Song Sutton
Owner at Ship Las Vegas

Michael Casey is an author/journalist, public speaker, entrepreneur, blockchain technology advisor/consultant and the chairman of CoinDesk’s advisory board. As an advisor to the MIT Media Lab’s Digital Currency Initiative and senior lecturer at MIT Sloan School of Management, he counsels students and faculty on research projects that harness blockchain technology to achieve resource efficiency and social impact. Formerly a reporter, bureau chief, editor and columnist at The Wall Street Journal, Michael is keeping his hand in journalism via Streambed Media, an early-stage multimedia production company that’s both focused on and powered by new technologies. He is also the author of five books including, with his co-author Paul Vigna, “The Truth Machine: The Blockchain and the Future of Everything” and “The Age of Cryptocurrency: How Bitcoin and Digital Money are Challenging the Global Economic Order.”

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Combiz Richard Abdolrahimi is a U.S. National Security Lawyer, Global Emerging Technology & Innovation Leader at Deloitte, a former financial regulator & policymaker, and has served across government at the U.S. Departments of State, Treasury, The White House & Senate. He is a senior executive with 15 years of public & private sector experience helping government agencies & Fortune 500 firms to run large & complex data-driven digital transformation projects, managing multi-billion dollar budgets & technology investments, & harnessing the power of innovation & emerging technologies to meet consumer & mission needs. He has scaled data-centric & technology-powered systems to modernize, secure, & advance U.S. innovations, clean energy, trade, export controls, national security, BSA/AML & KYC compliance, consumer protection, critical infrastructure, & cybersecurity programs. He has worked with industry & government leaders on shaping the business, policy, legal, ethical, regulatory, & technology dimensions of artificial intelligence, blockchain, cryptocurrency, CBDC, payments & banking, cloud & edge, quantum & IoT, cybersecurity, FinTech & RegTech, 5G & broadband, digital connectivity & identity.

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I have five years of experience with blockchain and made presentations to several U.S. government agencies and regulatory bodies. I worked in both the Division of Finance and Capital Markets during the height of the 2008-2009 global financial crisis at the Federal Deposit Insurance Corporation. Currently, I am writing a book about both the Global Recession combined with the appearance of Satoshi Nakamoto's white paper, and what new technologies such as Artificial Intelligence and Blockchain will mean for regulators to help prevent or minimize the next financial crisis.

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Claimyr is a fintech company that helps unemployed people with get their unemployment benefits. We’ve helped our users get more than $150,000,000 in benefits in the past 5 months. Our users rely on our APIs to decreases payout wait time from months to just a few days.Unemployment is an overlooked market of vast potential: Over $120 billion has been paid to California recipients in 2020 alone.

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Lisa Song Sutton is a businesswoman, entrepreneur, outspoken advocate for women, and Miss Nevada United States 2014.Lisa started her business career by working in a top Las Vegas law firm, specializing in business litigation. She then went on to create companies of her own. Lisa started her first business, Sin City Cupcakes, nearly 8 years ago, and today it is an iconic Las Vegas treat that delights tens of thousands of locals and visitors each year. Lisa is also co-founder of Ship Las Vegas, Elite Homes - Christie’s International Real Estate, and Liquid & Lace swimwear.In addition to her work as an entrepreneur, Lisa has published numerous articles for Forbes, Inc. Magazine, and Business Insider on business and entrepreneurship. Lisa has shared her message of leadership, empowerment, and action with audiences from the TEDx stage to local schools, encouraging people, especially women, to take a seat at the table and make their voices heard.In addition to her professional careers and serving as both Miss Nevada United States (2014) and Miss Las Vegas, Lisa is actively involved in the community, previously serving on non-profit boards including Monday’s Dark and the Asian Community Development Council. Lisa has been selected as a Global Shaper by the World Economic Forum and was named a Top 10 Social Entrepreneur to Watch.​

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About the talk

BlockChain: Overcoming Obstacles Starts with Regulation

Digital currency, digital assets, cyber currency, virtual currency — call them what you will, what is stopping them from becoming more pervasive is clear regulatory guidance. What’s the holdup and why it matters.

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So I'm moving along a panel. Now looking at going from the exciting disruptive, change the world message from Alex to the regulator exciting tonight. We're going to talk about how do I become the Bandit. Regulation is a major major issue for this face. It's been the ongoing theme for for crypto for sometime. How do we grapple with a completely outside of the box technology that just doesn't fit the the others? The square peg trying to fit into a round Hall of Technology ideas on that? Why don't we just do come out.com

Biz Michelle, Jason Tom and Lisa. What what why do sexy talk about the financial challenge of this to start with because getting compliant? If your startup in this space being consistent with the law is actually really costly exercise. So you know, you know maybe Michelle since, you know, riffle has been to driving this. If you think they're dealing with with compliance officers for some time yet, why don't you talk to sleep in a bed with extra? Very, very brief

introduction, as well as to what you do. So well, how about that? Play. So I'm Michelle Bond on the global head of government and Regulatory Affairs. A triple Ripple is a cross-border payments company and we are changing the way money moves globally by using the power blockchain technology. And we, I would say it compliance is absolutely at the corner of our business. We are not, our company is not consumer-facing and all of our customers are actually Banks and payment providers. So that these are all the financial institutions and given that they are financial

institutions. These are heavily regulated, entity, Caesar, and it is very expensive and Mel and kyc requirements. These are entities that are used to having Regulators, even, you know, sitting in a house at times. So that's something that we, that were heavily, you know, focused on Ripple itself. Actually, it is also regulated. So we have a New York State Department of Financial Services. Regulated by fincen as a Money Services business. So I would say compliance is really part of the everyday of, you know, what we do. And, yes, it's absolutely

accost play exercise and it's something that we're really focused. So, I don't have dollar amount. But it's, it's, it's part is part of everything that we do. So, we have to make sure that we are, we are complying that we're looking into our customers to make sure that they are compliant that they are against us. We also make sure that they're up to speed on all of their licensing requirements. And the fact that we are in our customers are located in over forty jurisdictions. That doesn't make it

any easier. I'm in the u.s. is very different from a lot of other countries. So it's certainly, it's certainly something that makes, you know, the fabric a lot more complicated. I'm always struck by a pretty well funded venture-backed. From you also have raised good, xrp, which is worse. At least you got quite a bit of money, right? Leg keeps me this unique competitive advantage, against say, a little start-up, that's just have to come up and get that massive wall of coming up with the money just to get through the door, right? So I told Jason you might get away on this since, you know,

you've been there talkin to stop, smoking to job hunt at that spice. You know, I got an introduction just briefly, but you'll thoughts on this is cost element of a compliance regulator with the FBI. And I have my own think tank in DC that it was founded in June of this year. Call the value of Technology foundation and it works on both open and close blockchain systems cryptocurrencies. Everything at looking to make sure that Congress and Regulators understand that there are legitimate people working the space and

get through some of the regulations. The first thing that I cursed to me Michael is that when I was a regulator, the FDIC very often Community Banks would have this challenge. So sometimes The Regulators would work to have less of a compliance burden on the smaller organizations, but another solution that can work to is for whether it's American Bankers Association or the icba is the group, The Community Banks together and offer a service that sort of a compliance as a service that can be spread. So friend since every new company, maybe spends $100,000 and they add up to a million

that can then pay for a service that might be provided to all 10 of the quote-unquote community crypto Banks. And that's one of the ways I think that is going to need to be addressed cuz you are going to need a strong compliance. Solution, cuz there's two issues going on here. One is, we don't even know exactly what the firm regulations are. So the money you're spending, we don't even know that might change the next day and In fairness to, you know, Michelle and ripple there, you can spend a lot of money in DC and still messed up. And, you know, I will just sort of say, out loud and it was

talked about on the hill, a lot that Facebook didn't do the best job this year. With all the resources, they could have still got a lot of egg on their face from some fumbles that they they made. So it's not only important have the funding but it's important to have the right people and the right strategy and I would say to be willing to work with the regulators and to understand what they're looking for. They're not looking to stop you from doing business there looking for you to check the box. But the biggest thing of all and I think you could probably speak to this to Thomas's this

idea of, you know, that regulars. Want you to check the box but they're not going to tell you how to do it. So that's up to us in the industry to figure out. That's you. That's what you want to do in a way on that. Yeah, so what are you talking about? In particular, is a right? It's called the travel rule, so exchanges in the past, all they had to do was just do maybe some blocked and analytics, but they would just accept that the address kind of as is now. They change is

actually have to send that information along with every transaction and receive it. So all that is part of this record-keeping initiative, undertaken by send, send them to the BSA act. But this is a huge technical challenge in terms of how do you actually verify, what is a AAA exchange versus a hardware wallet, or any kind of different business models? So I think have the cooperating with different types of entities and Regulators all the way down to. They change themselves to build out a proper solution is its critical and it's time sensitive to right now. What you're looking

for there is this, you know, a collaborative process, right? Between The Regulators was hitting his rules and we're here all the time that you know, the US government policymakers. They hold out this High ideal that they want to protect consumers. They want to maintain the security of the financial system but they also want to maintain Innovation that they understand. They say that you need to create at the right space renovation to Flume but you know that story just gets completely distorted. Sometimes how do we bring both sides together

and I think we should since you actually serve looking to run for Congress you are running for congress. You know, what would be what we supposed to make? Would you bring to the table to try to bring both sides together and get the much more collaborative approach to regular speed change? Well, as a business owner, I advocate of free market approach. Pre-market is the birthplace of innovation and disruption and that's exactly what blockchain isn't represent. And that's exactly why we're all here this week at CES. So, in advocating, that, I mean, let's face it, our current

Representatives are elected official, is the majority of them are not familiar with modern business or not familiar with modern technology and they aren't advocating for it. We all watch the Facebook hearings. So with keeping that in mind, what does that type of Regulation look like and I think it has to be balanced. It has to be an ideal, sort of Regulation. It's the bear on the leash that we have to meet locator control. And it's, of course, protecting the consumer but it's also making sure does allow for space for innovation of flourish and not be a roadblock to entrepreneurship

in and of itself within this industry, engaged at that level. And what do you bring to stop? For those of the government to try to hear you GIF? Only, if the Lord you've had, this is Raul. What do you do to to bring a collaborative approach? Regulator working with the White House of the Senate is well-advised. A nonce word of what the regulatory Frameworks of look like to enable these Innovations to achieve Mission impacted scale. Now, at the lawyer, I advise

Government Federal state local International as well as companies on looking to sort of adopt accelerate, these emerging Technologies weather is blockchain AI, and sort of two again to achieve that mission impacted scale, I would say that part of the part of the problem. I think when we started this panel, you talked about which was the cost element of compliance a pretty sore, but I didn't meet yet again. We need advice know, the government's with businesses until they come to us. And they're like, you know, we have this amazing business case, a phenomenal

Solution. That's going to empower consumers, going to make business better than a government better. And how do we get fully compliant with the like, what are the laws and regulations that govern sort of this new technology? And it's really difficult for even a huge company like Deloitte. So, you know, sort of give that advice because they Relations in the laws, haven't really kept up with the technology, the pace of the technology. And I think it's exactly steps. Lisa's point is that you have a policy makers and Regulators, who are mean, I'm not to ask familiar with

but the technology and in the end, that's that's a challenge. We get estimates of cost for compliance just from in a financial services. It anywhere between 50 million to 500 million a year. When you're talking about in the US are regulatory framework is very disparate, you know, every state has its own sort of jurisdiction, do you have like, maybe 50, 60, 70 jurisdiction, you have federal laws your know-your-customer anti-money-laundering, there's like, there's lots of regulations and there isn't a lot of guidance to mount their

publicly force, a startup for new companies that again had like that those new Innovations but they can't afford any, you know? At the company's, they like the lawyer. And I one of these, like big for to advise them. So it's like finding the right balance enabling Innovation. When you've got two of these, this huge, this is number to snapping turtles. On the other hand, of course, we've seen so many scams in this industry, right? So that the public view is, of course, I

should be regulated. Look at these guys there there. The force is a wolf, a very narrow reading, what's going on underneath and all the hard work to go to the technology, everything else. But the messaging is that. So how do we get, what's, what's going to vote? And you guys who are there talking to politicians? Is there a willingness to serve take a different view or they just feel like they've constantly defending a little guy. I don't think you want to regulate them out of existence or regulate them so that they move over seats because that's what you see. Now is companies that cannot get

fully compliant with all regulations. They want to be but it's like going to the regulator going to be no going to the hill asking begging for advice and info and and and recommendations and not getting that fully that advise and they're like what I don't want to be slapped with a you know, whether it's 6:00 sanctioned by a fence in or going to one of The Regulators, I'll just move over seeing too much of a friendlier jurisdiction that allows Innovation to flourish

giving industry and opportunity to say okay. Well here with the guidelines look like and this is what I need to do in order to abide by the rules. People can't do that in the industry now because there isn't a clear regulatory framework. In fact, I think unfortunately at the SEC Cinespace and certainly, they're looking at digital assets and, you know, trying to figure out which digital assets are securities and which ones aren't and they put out a guidance. Actually last April

to talk about the classification of digital assets and it basically took the the Howey test, which defines what an investment contract is for jurisdiction. Basically and expanded a force factor test into over 30-40, almost 40 factors to figure out. Well, you know, is this or is this not going to be more likely to be a security or not? And just use our right to my bakery Sin City, cupcakes near the first Bakery, in the Las Vegas Valley to accept Bitcoin and we're all excited about it because Nevada

Underwear, like such a thing. And I like, let's go ahead and Pregnant. And we literally called the AG's office here in Nevada, and we are like, so what we need to do, what do we need to do? How do we implemented? And they were literally, like, what are you talkin about? Tell me, like, send them the link, you know, where, like, you guys been asleep all the way. This is what we're doing. They had no infrastructure and no response in relation to what is aqua implementation. Look like on the back end as Bakery owner right at the business owner. And so we just made up our own rules, which

we use an Airbus wallet as our very first wallet client with the bakery because there was no guidance, no Clarity. And it was just here is the message on some obscure Federal website that this is not allowed and that was it. And actually, that I mean, the industry is trying to come up with their own approaches to like, for example, the crypto ratings Council was created. Aren't getting this. That's right. We're going to, we're going to fill that Gap. And we're going to determine what is and isn't to security.

And and decide what to list and it was mainly the exchanges that had come up with a framework sister-in-law. You know, the industry is trying to step in, I think the cftc, the Commodities Futures Trading commission is actually doing a really good approach because they have more principles based on, at least then you know, as the technology involves, they won't have to keep changing their regulatory Frameworks. And I know it can it'll be more so that's kind of what he is looking at. But it's definitely it's it's definitely Townsend internationally. I would say though

that they are doing a great job, this idea that this is a very mobile technology industry and Technology by 50 and I wear in men, The idea that I can just pick up and move somewhere, else becomes more attractive in that in that environment. You know you've been looking at this, from the perspective of China and what it's doing in terms of all of his research, how real is the threat, the United States that this technology despite if he just gets picked up everywhere else at the question, is it, is it actually going to come to fruition or not? And

we don't know one of things we Advocate the body technology Foundation as we didn't have it at the chief technology officer. And we're working to create a research and development center here in the US that can provide the same type of focus on blockchain technology. That's done in other countries now cuz we don't have anything like that. You know, if you take a step back and you think about the idea of the Chinese wanted to do a digital currency? What's important is as regulators and Impalas, we have to think one step ahead. So let's say China next week You're

all over in coindesk announces that they're big wants a digital currency that it's out there. So does that mean that we can walk into our 8-year olds room and seeing them purchase a Chinese digital currency which we didn't think about before, when I was in banking though, the biggest thing was always like don't mess with people's kids and don't mess with people's money with the internet. I think you saw it messing with people's kids, you know? Now we're messing with people's money, right? And so it's a whole new challenge and it's really important to that. We think about in this

country, how we want to regulate it and who we want, how we want that framework to be. Cuz if we have the FCC or the cftc involved to me, that's a really good thing. Even though the SEC can be somewhat law enforcement based, we're talking about maybe putting, you know, utility coins in the Federal Trade Commission. We're talking about, maybe putting digital cash under the fence in. These are, you know, federal law, enforcement agencies. It's kind of like if you have a building Building inspector shows up and say, I want to inspect your building that's like the SEC and seeing safe.

Okay, you know, you're going to inspect the building, what if a police officer shows up and inspect your building? That's a whole different type of paradise. I think it's important that we think about how were training our regulators and what's her to framework. We have to make sure that it's not something that we are punishing, those who are innovating and work with them actually think all. This is a really good sign for the industry. The fact that there's all this regulation, coming out, I'll say this. The one of the FDIC the expression, all the bankers had when we going to examine them was

we're happy to see here Jason and we glad to see you go. So, you know, we're here, that means you're in business and then for happy when you leave in a week and give us a good report so it comes to like blockchain. You hear that a lot when it comes to artificial intelligence where were, you know, the White House without the executive order on a i and we want to sort of encouraged federal agencies to adopt and implemented at Scales. We don't fall behind. I think that's what we need for, for

blotching. You need some sort of camping within the within within the federal government to really advocate for this technology. And I think with, with that sort of advocacy comes the public-private Partnerships, the contortions that can be formed to spread the cost of Regulation. That is, again, it's still pretty high compared to other jurisdictions. And I'm not saying rightfully so or not. But, you know, I think that there should be kind of a Level Playing Field with onion of startups and established companies looking to, you know, get a license to start their

business but it's like if you're an established company or entity, you have like significantly more leg out, then you would have started. We need a basically Empower budding entrepreneurs and an in startups because that's where the creativity and Innovation is coming from. Methadone. Do not like them every jurisdiction out there. That said it looks like it's open the doors to Old a scripto wind. Akins is necessarily as as friendly as it seems as soon as we go .2. But sometimes being a place that is proactively trying to cultivate, you know, that this

industry in many respects because the end is crypto Valley and zoos and FEMA has definitely had a v, a, the Swiss regular from those of us who have wanted to think on your own bank control your own money so they think. Anyway, and on this was so last year actually, which is the main regulator in Switzerland, for financial markets, are they announced that they're banning Basically, Hardware wallets with her non-custodial. You own your own private key. This is a major news for the entire industry because it basically stops people from beating

their own bank. You have to keep your assets on a major centralized exchange and so, that mean you wonder why? That's, that's when you know, play devil's, advocate here Regulators want, strong market and if you look even back to the bitwise report to the SEC, Volume vs Real volume, look at all the failed to ETS Wright. Regulators looking for solid markets and how do you do that? Build actually have good institutions. You have good laws and build the institutions in those institutions Bill to Market themselves. So if you solve some of these AML issues at the very

beginning, you can actually begin to have much more mature markets. What happens when you have mature markets? You bringing more fintech players. You bring in a lot, more institutional money. With blockchain with those two married together. Are you going to start to see some really interesting Innovation, you actually start to spend your USB C or your your stable coins at stores. You can do a different things with the more advanced mature Mark. So, there are, there is, there is some cons this, right? Especially from the more, I libertarian crowd, but there's also some very, very

positive developments Silver. Linings within this development, as well as he is still in the room, but I think he probably take issue with this. It is. This core principle of a Bitcoin, at least then and any others that you stop with that. Absence of an intermediary that is the whole point, right? Range of interesting in a programmable money, aspects in smart, contracts and cool things that can be done with otherwise. Custody custody, based digital nice or nothing radical is happening. But too many who have seen this issue, as the

critical point you left with this? What we doing that? Right? Maybe Lisa since, you know, you've got some beat some Bitcoin. ATMs is part of your business interests as well, right? I mean, how does that supposed to be a fight for somebody to come in and out of cash and have that fluid relationship? How does oldest ambiguity fit into the Bitcoin ATM World Valley? It's tried to be really supportive and embrace it socially just Bitcoin ATM machine. I think right now approximately approximately 117 Bitcoin,

ATMs around the valley. 18 months ago there were like 60, so we're seeing this and increase in people wanting to be supportive of blockchain and cryptocurrency and but the state of Nevada came out and they said, well, you know, of course regulation. So you need to make sure that you're in compliance right answer. That's the know your customer. That's making sure that you has identification on everybody. And, and as a result, you know, you have some, these did ATMs, where at in these transmitters that were specifically designed to not have to have your driver's license scanned onto

it, right? That's that's why people were using these ATMs, in the first place, which lends itself into that. Other side of, is there money laundering going on there? Seeing all these other issues. So, you're seeing a divided and just the ATM Community, where some people are saying, well, they haven't even given us with a clear definition is of how we're supposed to be utilizing these ATMs, and they have two distinct, Nevada statutes right now. Under NRS + 1 is Related to, if you are a money transmitter and there's an exchange going on within the machine, then you have to be complied

with kyc and AML. However, if you only either store it for you, there's a one-way transaction words like accepted in but it's not gone back out to another wallet address. Now, you're just holding it and now you are treated as a trust under, which is not subject to, you know, I love you. So which one is it right? Where do people fall in line? And so, it's your people deciding upon themselves where they, where they fall and I don't think that that should be our place. Not if we're going to get sanctioned for it or get fined for it. Not to clear Nevada.

Nevada, lot of clarity. This is someone who's running for congress talking about all this. I think there's anybody like that in Congress. Now, they want to understand it. Most of the time we spend most of our resources when they're on the hill. What's blockchain what's cryptocurrency to get into the weeds? Is what's needed? Cuz people forget that in Congress. They work hand-in-hand with The Regulators. It's not like they're detach density. So, you know, I think to have someone this is this is this can turn the tide with the regulation

of having more folks in DC who actually understand the Bitcoin ATMs who run a business soon. Understand the wallets that way when Michelle and other companies come to her. It's not like, okay here's with blockchain is and then if there's no more, you know, conversation, cuz they just don't understand it. Oasis used by terrorists, you know, she'll actually understand the business needs and that's really important. What is the kids that used to dream about your own bank did? I mean, do we just have to just live with the reality that we're going to have to have kyc and AML and

regulations in Wheels. Cumby's, what's your take on this? This means that some people hold not have any swear regulations or I know your customer anti-money-laundering but these regulations forbidding 40 years ago. Everything forbidden in a time where, you know, we didn't have sort of facial recognition technology, mobile, phones technology to, to open up account, you know, a bank accounts again, as ITS Technologies evolving the policies Regulation Z to a law. And that's where I think it's important to have sure to policymakers and

Regulators engage with industry industry. Can go to them. Startups can go to them and say look I have this use case. I have this business that I want to do. This is how I'm going to do it. Like is this, can this be compliant and getting answers? I think it's just like, you getting the information. You need guidance, getting the clarity is needed, but I do things like in a we need to kind of move in that direction of, you know, faster payments. You know, we have comparatively speaking to the rest of us were the development of economies. We have one of those lower

payment systems in the world, you know, we put together a faster payments task force, Of course, this and that and it's like, we need and we talked, but it's like, okay, we put to get machine, we need to like accelerated, we need to like, Push It Forward because from a again, a national security standpoint from a, from a financial empowerment, Sandpoint other countries are, you know, moving head, very fast and, and we're in Obits, bit slower, but I will say, in all fairness, we do have I don't know how many 8001 of her banks in the US financial

institutions. Other countries say is don't eat whatever. They might have just a handful so it's a lot easier. Another section, V push-up, you know, a faster payments, roll out then say the us but that does not mean if then we should still be, you know. On the payment side, I mean using blockchain and it didn't last. That's what I mean. It usually takes what three to five business days to do a cross-border payment. Now, under our products can be done in a few seconds and that's that's the power of the technology.

That's very meaningful on the point that you were just making any luck when the internet in the 90s was being developed. The, the old, the regulatory framework that was in existence was designed for transistor radios and rotary phones and it was successfully updated. And we have the internet now that needs to be done again and I think we can do it. So there is another way to think about these problems or do we just like make it easier through the technology Itself. By the red tech industry itself is Dad to

say, yes, we can still get compliant. Rather than having to spend, you know how many millions of dollars on lawyers and has the machine can do it for. It's like you've got this concept of a compliance in a box, how do we use Technologies in the other things to bring down the cost of the efficiency of living out for what the law requires us to do? Well as written in 04 years ago, even in the night in the thirties. But modern technology has really come a long way to help that facilitate. Those kind of complaint requirements called

infrastructure makes basically redundant. It's a virtual crashes, computer Cloud technology, any kind of API technology types of the technology is there actually that's not much of a problem. What is there is the governance? That's the business models and actually cooperation or businesses? Do they want to comply? The original changes Donuts really want to comply. So becomes a very difficult problem. Even just to have a regulation or a rectangular box in the solution because a few lineups, the

code won't solve something like the travel. There's going to be some really interesting interoperability issues with that. So that's a human problem that's not necessarily a few lines of code. Renee, I can't even solve. Okay, but other any things that we can have what what what what am I riddle if you looked into different Rec Tec Solutions or so Are there are several that people can use an. I actually think that's one of the beautiful things about blockchain is so just how well it can be traced to actually. So I'm so there are different tools out there like in ciphertrace and a lot of

people in the industry use them on to do monitoring and tracing of transactions and actually you can run analytics on the transactions that have been done and I can be helpful for an all-purpose is. So there are different right, Tech Solutions of the industry is using end and when and if she is using them the regulator's use them to that. Which I think is a good thing is is a regular the FDIC. You'll see these weather tents, David Market risk wherever you're measuring. If you see that solution come across your familiar with it, you can just check the

box and understand what it is. I think that it's really important that we have company like ripl that's taking the lead in terms of helping to create what kind of regulations. Used when I was at the FDIC the concern we had was one of these large Banks came together like Wachovia Wells, Fargo. It would take three to six months. If one of them if they Wells Fargo, we know today would fail to figure out what everyone's Deposit Insurance was. So, my first blockchain use case that I brought the FDIC was, why do we use this to trace people's customers' deposits and make the banks? Use some sort

of blockchain technology. So, we know on a Friday, this is what everyone has, cuz no one's going to wait for you to six months. So, you know, to get their money once a large Bank like that does fail. There was a, you know, they do those, the systemic risk reports of the really large Banks. One of the report's was 100000 pages long to go through a hundred thousand pages. So there's an opportunity for one way to get to sleep. Guaranteed sleeve tool, that

Regulatory Compliance and Rec. Tec is like in Norman. And in a few, can you use say watching these systems for kyc validation? So another the reason for like the exorbitant cost of compliance is that financial institutions, money service business is payment companies. They have to constantly verified validates that know-your-customer, AML information and data, sometimes it's even done manually. It's not like digits is not there's like a digital process with

blockchain. You can you can essentially validate that information to validation component use case of blockchain. You know, you can use that and you can pick a blower, it mean to lower-cost. But I will say this is, like, say, if your financial institution and you're using a blockchain and AI base kyc system that you developed in. And how do you know what's that authority to operate look like where do you go to know if you have a regulator in the house? You know banking regulator looking that you're using this latest tech. Ecology tool. They're going to have

a lot of questions. You know, so again, it's like getting The Regulators may be comfortable or Certegy, no more engaged with clients are the customers that are using adopt Innovative Technologies because it's against you're not they want to be compliant all these businesses, everyone wants to be compliant and it's just fate, they need that, you know, that the engagement I think with with The Regulators is key political here, let me get to let it go back to the future. We

moving to an election year here and there will be changes of government both within legislature. And maybe at the executive branch will see this is this a bipartisan problem is this something that we think that maybe you know, that they could be a change if there was a change of the structure of Washington and he thought the same one, Advocacy, for more elected officials to come from these other sectors, right? Come from private business come from small business come from blockchain Community, come from fintech. There's an opportunity here for

regular folks, like, myself, to come off the sidelines and no, I don't have any former political experience. I didn't hold a seat with the State Assembly and then work my way up through the state senate. And now I'm going to run for Congress, I'm running for congress and it's because I care about this community and I think that we severely lack a real voice around small business, how these regulations affect small business and what we can do to make our communities better through technology, Republicans Independence, they're all sort of United, like, look,

we've got Antiquated systems old, you know, we we need modernization, we need Innovation, there's numerous, you know, Senate Congressional, Caucuses on say whether it's watching or AI, you have feet of support within you know, previous administrations the current Administration you have very Innovative Regulators like the cftc. I love the cap-17. They're they're just very like, they just think they understand. Yeah, I don't think it's a bipartisan issue and it shouldn't because once, but if it becomes a partisan issue,

then you're going to have you know, I think challenges and problems so it might be coming from but I think it's important that we understand that, right? So if you actually have a new Administration and are you going to have new people in front of Treasury? For example, see if you knew she will be out. What does that mean? For what they're doing? Currently with AML, I had some concerns, we have You know, I think it's been relatively bipartisan, but this year we're starting to see

a little bit of a break man, because of Facebook and Libra. Because now, stable coins are real concerned about. I could affect the consumer in. The Democrats are really focused on ways of regulating Annabelle with manage stablecoins, actor, Securities while Republicans but wouldn't, we never thought we'd hear any politician actually talk about the virtues of Bitcoin overstable points. So, we're seeing a little bit of that and it again, it's just the way this, this so many changes its Market, but I think we've got some interesting times wins

everybody for this family channel. Hey guys.

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