As Bitcoin’s (BTC) popularity continues to grow, its network built on 1MB blocks struggles to keep up with the growing number of transactions. Two groups within the Bitcoin community, the “Big Blockers” and “Decentralists,” disagree on how to address the blocksize issue. Big Blockers are focused on realizing Bitcoin’s potential to serve as a cash
FinTech
German Federal Financial Supervisory Authority (BaFin) publishes circular on regulatory requirements for financial institutions’ IT systems
On 3 November 2017, the German regulator for the financial sector, the Federal Financial Supervisory Authority (“BaFin”), published a new circular titled Rundschreiben 10/2017 (BA) vom 3. November 2017 – Bankaufsichtliche Anforderungen an die IT (in English: Circular 10/2017 – Regulatory Requirements for IT-Systems – “BAIT”). The BAIT is available in German language at the BaFin’s website. The final version of the BAIT incorporates a number of revisions that result from the submissions made by stakeholders in the course of a prior public consultation.
Scope of the BAIT
The BAIT’s purpose is to give guidance on the BaFin’s interpretation of the statutory requirements under Section 25a(1) s. 3 no. 4 and 5 and Section 25b of the German Banking Act (Kreditwirtschaftsgesetz – KWG). The BAIT sets out the BaFin’s understanding of how reasonable technical/organisational features of IT systems used within financial institutions should look like, taking in particular into account the requirements for IT security and a sufficient emergency concept. The BAIT also addresses the increased engagement of third party IT suppliers that carry out a wide range of processes on behalf of regulated financial institutions, Section 25b of the German Banking Act.Continue Reading German Federal Financial Supervisory Authority (BaFin) publishes circular on regulatory requirements for financial institutions’ IT systems
FTC’s FinTech Forum continues focus on emerging technologies including AI and Blockchain Technologies
By Kari Larsen, Gerard Stegmaier & Kimberly Chow on
The Federal Trade Commission continues its efforts to be the leading federal regulator in the areas of privacy and data security. Its latest FinTech Forum highlights emerging issues relating to blockchain, machine learning, and related tools that increasingly influence how sensitive information about consumers is collected, used, shared and secured. These programs help inform the…
Leveraging the Blockchain to Provide an Unalterable, Distributed Ledger for Transactions, Supply Chains and Other Corporate Processes
By Kari Larsen, David Krone & Anthony J. Ford on
On Monday, November 14, 2016, the Securities and Exchange Commission (SEC) hosted a forum to discuss financial technology (FinTech) innovation in the financial services industry. The summit discussed several topics, but the second panel, titled “Impact of Recent Innovation on Trading, Settlement, and Clearance Activities,” specifically addressed blockchain-enabled distributed ledger technology and its applicability in corporate environments. The panel provided an opportunity for the SEC to highlight blockchain’s potential for assisting companies in meeting compliance requirements, cutting costs with respect to record keeping and tracking assets, and disintermediating transactions.
Corporations have begun to seriously examine the opportunities made available by blockchain-enabled distributed ledger technology beyond digital currency, in areas ranging from financial services and retail supply chains to art and music. Unlike Bitcoin, where the blockchain provides a transfer mechanism and ledger for the intangible currency, digital ledger technology also may provide a distributed, often a privately managed system of records for a wide variety of transactions.
Continue Reading Leveraging the Blockchain to Provide an Unalterable, Distributed Ledger for Transactions, Supply Chains and Other Corporate Processes