Paxos’ Post

We’re excited about the acquisition of a MICA compliant E-money institution in Finland! 🇫🇮🇪🇺 Upon closing, #Paxos will become a fully licensed EMI in #Finland and the #EU. This will allow us to expand our globally regulated platform to serve European customers in #stablecoin #issuance and #EMI #payments in a safe and compliant manner. More to come 🚀 in 🇪🇺🇪🇺🇪🇺

Acquire or Apply - what to think about. Should I acquire an existing licensed firm or should I apply for the authorisation? I am often asked about the option of acquiring an existing emoney/payments firm versus starting an AEMI / API from scratch. In fact that came up for the second time on a call this morning. Then I spotted this post which got me thinking deeper. The acquisition of Membrane Finance by Paxos (see announcement below) will be interesting to watch. I wish both parties the very best success as they navigate the Finnish regulatory landscape to close the acquisition. A lot of work can be involved for what may appear to be something as 'simple' as a change of controller, particularly where the new owners have designs on changes: (i) to material amendments to the business model, (ii) for an extension of the payment services (Annex 1 PSD2) being provided, (iii) to critical outsourcing arrangement, (iv) change in composition of regulatory capital; and (v) changes to personnel. Suddenly you could be facing the equivalent of submitting information as extensive if not far more extensive than required under the EBA's Guidelines, for example: * Change of Controller - Guideline 15: (i) Application for a Legal Person, (ii) Application for a Natural Person and (iii) Application for a Director of a Legal Person or Entity with a Qualifying Holding * Guideline 16: Identity and Suitability Assessment of Directors and Persons Responsible for the Management of the Electronic Money Institution * Guideline 3: Programme of Operations (where there is a material change to the business model * Guideline 4: Business Plan * Guideline 5: Structural Organisation * Guideline 7: Measures to Safeguard the Funds of Electronic Money Users and/or Payment Service Users * Guideline 8: Governance Arrangements and Internal Control Mechanisms * Guideline 9: Procedure for Monitoring, Handling and Following up on Security Incidents and Security-related Customer Complaints * Guideline 10: Process for Filing, Monitoring, Tracking and Restricting Access to Sensitive Payment Data * Guideline 11: Business Continuity Arrangements * Guideline 12: The Principles and Definitions applicable to the Collection of Statistical Data on Performance, Transactions and Fraud * Guideline 13: Security Policy Document * Guideline 14: Internal Control Mechanisms to Comply with Obligations in relation to Money Laundering and Terrorist Financing (AML/CFT Obligations). I have ignored Guideline 17 and 18 here. But if there are changes to statutory auditors and insurances/guarantees, they will need to be addressed. When you think about it, probably makes more sense to start a fresh application if one is merely chasing the license of the authorised entity. But of course if the predator is getting good quality business, volumes, margins and customers from the target then the economic of going through extensive changes may really make sense. Confused - then ask CompliReg.

Paxos expands into Europe by acquiring Membrane Finance Paxos has announced plans to acquire Membrane Finance, a Finnish Electronic Money Institution (EMI). This acquisition, pending regulatory approval, will make Paxos a... Read more https://lnkd.in/dqEJvCcB

#US is on the cusp #Asia but we are bring #Belief #Conviction with #US ~> Asia’s proactive regulation sets a strong precedent and offers a robust framework for legislators worldwide pro-crypto actions to bring #TradFi & #DeFi closer together

There is a desperate need for interoperability infrastructure that can smoothly link TradFi systems with blockchain-based applications and protocols, argues Ariel Shapira. https://lnkd.in/ggFhCQ2K

Can a decentralized, #blockchain-based Internet become a reality? 🌐💻 A decentralized internet based on blockchain technology is often touted as the future of the web. But what does that really mean, and how close are we to seeing this vision become reality? Let’s dive in 👇 🤔 Right now, the internet is dominated by big players like Google, Amazon, and Meta. These companies control a lot of user data and online infrastructure. A decentralized internet aims to break that monopoly. But how? 🔑🔒 Blockchain tech, the backbone of cryptocurrencies like Bitcoin, allows data to be stored across a network of nodes instead of on central servers. This means no single entity has full control over the data. 💡⚠️ In theory, a decentralized internet could give individuals more control over their own data, increase privacy, and reduce censorship. But, as with any emerging tech, there are challenges. 🚧⏳ One key obstacle is scalability. Blockchain networks, especially public ones like Ethereum, can be slow and costly. The idea of supporting millions of users in real-time remains a significant hurdle. 🔄👨💻 The user experience also needs improvement. Right now, interacting with decentralized apps (dApps) is clunky compared to traditional, centralized ones. For mainstream adoption, UX must be smooth and seamless. 🚀📡 Despite these challenges, several projects are already pushing the envelope. Examples include Filecoin Foundation (decentralized storage) and IPFS (InterPlanetary File System), which aim to make the decentralized web more functional. 💸💻 Decentralized finance (DeFi) is another area leading the way, proving that blockchain-based systems can offer real-world applications beyond just digital currencies. Imagine a future where decentralized finance integrates with a decentralized internet. 👮♂️⚖️ Governments and regulators are also watching closely. A decentralized internet could pose challenges for laws around data privacy, cybercrime, and intellectual property. How would regulators enforce laws on a distributed network? 🔮🚀 While a fully decentralized internet is still a long way off, the advancements in blockchain, Web3, and decentralization suggest that the future could be more user-centric and less reliant on central authorities. DCF exists to support initiatives enhancing the decentralized cooperation and pushing the Web3 space forward 🤓 Reach out to us and let's talk 👀

Many interesting #blockchain and #crypto topics discussed at the networking/discussion panel with EU Tech Chamber (EUTECH). New projects, new rules, but also many tech solutions!

Global financial cooperation and China's modernisation take centre stage at Sibos 2024 in Beijing Read the full article: https://bit.ly/40c9JJr The plenary session of Sibos 2024, hosted in Beijing, brought together influential voices from the global financial sector to discuss key trends shaping the future of finance. From cross-border payments and digital currencies to technological advancements like AI and blockchain, the session provided a platform for forward-looking discussions on financial inclusion, innovation, and global cooperation. A significant theme from the discussions was China's distinct approach to modernisation, which focuses on fostering growth through sustainability, economic resilience, and international partnerships. In their opening remarks, Graeme Munro, Chair of the Swift Board of Directors, and Samantha Emery, Deputy Chair, emphasised the importance of viewing industry challenges as opportunities for growth. Munro noted, "We see challenges as opportunities to grow and to reach our industry's full potential," underlining the need to embrace innovation in navigating an increasingly complex financial environment. Emery further highlighted progress in key areas such as ISO 20022, the Group of 20 (G20) cross-border payment goals, and the role of sustainability in shaping future financial systems. Get the latest updates from Sibos 2024 here: https://bit.ly/40cCuFB Javier Perez-Tasso, Swift; People's Bank of China; Bill Winters, Standard Chartered Foo Boon Ping 胡文彬, Cindy Yu, Eunice Foong, Chris Kapfer, Ruoxin Qi, TAB Global #FinancialInclusion #TechnologicalInnovation #BlockChainRevolution #CrossBorderPayments #SustainableFinance #GlobalCooperation #AIInFinance #ChinaModernisation #sibos #DigitalCurrencies #FinancialStability #EconomicResilience #InternationalPartnerships #CentralBankDigitalCurrency #GlobalTrade #FintechInnovation #TheAsianBanker #TABGlobal

The Finance Alliance at EU Tech Chamber (EUTECH) organized a dynamic networking meeting, drawing participants from across the globe. Attendees represented diverse sectors including #cryptocurrencies, #investment platforms, and #legal experts focusing on the implications of use of #technology and funding opportunities for Startups. Discussions revolved around the positions outlined in the recently published position paper, offering valuable insights into the evolving financial landscape. Tilen Cuk shed light on the challenges posed by #MICA and its implications for businesses, while Gregor Boltar delved into the intricacies of yPass arbitrage. Bertram Seitz provided valuable insights into white label solutions for mass access. Particularly, concerns raised by Riaan Rautenbach, CFO & Founder LIVE FR8™, and Raimund Ortner's comprehensive response regarding digital currencies' safety nets was the final take away of the session. A heartfelt thank you to Mariah Grubb & Nicholas Carl Clerk from Renew Capital, and Wayne Joachim Lehmann for their valuable contributions regarding regulations and areas of focus for mass adoption. Overall, EUTECH's commitment to innovation, sustainability, and collaboration is evident, guiding towards the vision Technology Obliges. Board & Leadership: Florian Frhr. von Tucher, Sierra von Tucher, Raphael Schranz, Gregor Boltar, Monica Nguyen Management: Dr. Igor V. Gladkov, Marcus Wiemann Team: Aimal Jehangir, Farhan Iqbal, Muhammad Ahad Zaka, Ali Mustajab Naqvi, Aeerena Nakşidil, Muhammad Umer Afzal #NetworkingMeeting #Eutech #FiananceAlliance #BusinessOpportunities

📣 Blockchain Beyond Crypto ⛓️ With the recent hype around Bitcoin and other crypto assets, we tend to forget about the real-world use cases of decentralized technology that are transforming industries. Let’s explore how blockchain is making a real impact! 👇 💼 Smart Contracts in Business: Smart contracts, powered by blockchain, automate and enforce agreements between parties without the need for intermediaries. This can streamline business operations and reduce legal costs. 🌐 Supply Chain Transparency: One of the most promising uses of blockchain is in supply chain management. By ensuring every step of the process is recorded on a transparent ledger, blockchain can drastically reduce fraud and improve traceability. 🏥 Healthcare: Securing Patient Data: Blockchain can ensure secure and transparent management of patient data, making it easier for healthcare providers to share information while maintaining privacy and data integrity. This can help reduce errors and improve patient outcomes. 💡 Energy Sector Transformation: Blockchain also has the potential to change how energy is traded and distributed. Decentralized platforms can help manage energy distribution more efficiently, reduce costs, and enable peer-to-peer energy trading. 🏛️ Governance and Voting: Decentralized voting systems can reduce fraud and increase transparency in elections. Blockchain can enable secure, tamper-proof voting mechanisms that give citizens more trust in democratic processes. 🛡️ Enhanced Cybersecurity: Blockchain's distributed ledger offers increased security by eliminating single points of failure. This could significantly reduce cybercrime by making data breaches and hacking more difficult to execute. 🔄 Tokenization of Assets: Blockchain is paving the way for tokenizing real-world assets, from real estate to art. This could unlock new markets and make high-value assets more accessible by breaking them into smaller, tradable units. 🚀 Future of Blockchain in Business: With applications in sectors like finance, healthcare, energy, and governance, the real-world use cases of blockchain are expanding rapidly. It’s not just a tech trend—it's a foundation for future innovations. 💡 Blockchain technology has far-reaching implications beyond cryptocurrency. As industries continue to explore its potential, we’re only scratching the surface of what’s possible. DCF champions various initiatives enhancing decentralized cooperation, especially in the field of Web3 public goods 🙌 Learn more and reach out to us 👀