Regulatory Ramblings Anniversary Edition | originally aired on 20 May 2022! Regulatory Ramblings Briefs: Financial Crimes | A Conversation with Bill Majcher, President & Global Head of Recovery Operations at EMIDR LIMITED.
With a storied past that reads like a Hollywood screenplay – Bill Majcher has lived it. After 23 years with the Royal Canadian Mounted Police, he retired with the rank of Inspector. For two decades as a Mountie, he was an undercover operative that infiltrated drug cartels, and engaged with terrorist and extremist groups operating globally. For extended periods, Bill worked covertly in numerous cities outside of Canada including, Miami, Chicago, New York and San Francisco working alongside a host of US Federal agencies. This is a replay edition of the Regulatory Ramblings first episode podcast with Bill Majcher.
Unleashing the Potential: Regulation and Innovation in the Digital Asset Era
With Donald Day
Donald Day, chief operating officer of fintech start-up firm VDX, and the former in-house cryptocurrency/digital asset expert at Hong Kong’s capital markets regulator, the Securities and Futures Commission (HKSFC), sits down to chat with Regulatory Ramblings host Ajay Shamdasani.
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They discuss Donald’s time as a regulator, the importance of broadening the policy discussion beyond just being about cryptocurrencies to envisaging a future where virtual assets are a key part of daily commerce, as well as the importance of digitization, and Hong Kong’s ideal position as a global fintech and digital asset hub, the HKSFC’s new virtual asset service provider regulatory regime and its implications for legal and compliance staff, and some of the aims of *CFAAR’s local chapter almost a year after its formation.
# The new licensing regime for centralised VATP - Virtual Asset Trading Platforms (VA trading platforms) trading non-security tokens will come into effect on 1 June 2023
* The Crypto Fraud and Asset Recovery Network
Topic Takeaways and Markers
02:49 | The Role of Regulation in the Evolution of Bitcoin and Crypto Industry - Bitcoin was created to establish a payment system independent of central entities, but intermediaries are still needed for fiat-to-crypto exchanges. - Regulation is necessary for the involvement of institutional investors and professionals from traditional finance in the crypto industry. 04:51 | The Role of Insurance Companies in the Crypto Industry and the Need for Risk Management Tools and Regulation - Insurance companies and risk management tools are crucial for the growth and stability of the crypto industry. - Proper regulation is needed to facilitate institutional adoption and provide risk mitigation measures. 08:29 | The Potential and Regulations of Blockchain Technology in the Medical Field - Blockchain technology has the potential to reduce mistakes in the medical field. - Regulations should be implemented to ensure responsible access and modification of medical records on the blockchain. 09:56 | Hong Kong, Singapore, and Dubai: Who is ahead in fintech and digital assets? - Singapore is seen as a frontrunner in marketing itself as a fintech and digital asset hub. - Hong Kong's stability and accountability make it attractive despite past regulatory criticisms. - Strong regulation is essential for sustainable growth in the digital asset market. 15:19 | The Real Opportunity Lies in Digital Assets, Not Cryptocurrencies - Digital assets have broader applications beyond cryptocurrencies. - Tokenizing real-world assets and providing liquidity can create a more accessible market. 20:21 | The Broader Discussion of Fintech - Fintech encompasses more than just crypto and digital assets. - The focus should be on solving real problems and improving people's lives. 24:22 | Hong Kong's New Virtual Assets Regulations: What it Means for Compliance and Licensing - The new regulatory requirements aim to enhance compliance and prevent money laundering in the crypto industry. - Existing platforms have a grace period to comply with the new licensing regime. 30:57 | The Value of Experience in Compliance for Digital Assets: What to Do to Prepare - Experience in compliance, especially in areas like market surveillance, is invaluable in the digital asset industry. - Building a compliance team with experienced individuals helps engage with regulators and clients effectively. 34:38 | CFAAR's Role in Enhancing Compliance for Digital Assets - CFAAR aims to engage, enhance, and educate the industry and legal system on compliance for digital assets. - Legal professionals need to understand tools available for fraud prevention and detection in the digital asset space. 40:48 | Insights on Asset Tracing and Recovery in the Digital Age - Blockchain and ledger records are helpful but require additional investigation for asset tracing and recovery. - Tracing digital assets involves understanding technical complications, but tools are available for legal and law enforcement agencies. 42:42 | Hong Kong's Achievements in the Digital Asset Regulatory Framework - Hong Kong's stable regulatory framework for digital assets is commendable and encourages growth in the industry.
Useful links in this episode:
Donald Day on LinkedIn - https://www.linkedin.com/in/daydonald/
VDX - http://www.vdx.com/
Hong Kong SFC's Consultation Paper for VATP Operators - https://apps.sfc.hk/edistributionWeb/gateway/EN/consultation/doc?refNo=23CP1
Related Reading: Interdependencies in Crypto Ecosystems: Drivers, Implications and Policy Responses - SSRN Download
Related Reading: Financial Data Governance: The Datafication of Finance, the Rise of Open Banking and the End of the Data Centralization Paradigm - SSRN Link
Regulatory Ramblings Podcasts List
Regulatory Ramblings Podcast
Welcome to Regulatory Ramblings, a new podcast from a team at The University of Hong Kong on the intersection of all things pertaining to finance, technology, law and regulation. Hosted by the HKU Reg/Tech Lab, HKU-Standard Chartered FinTech Academy and the HKU-edX Professional Certificate in FinTech, join us as we hear from luminaries across multiple fields and professions as they share their candid thoughts in a stress-free environment - rather than the soundbites one typically hears from the mainstream press.
Regulatory Ramblings is a forum for those that appreciate long-form conversation. While it is something that may be regarded as lost art of an older time, it is nonetheless sorely needed in an age when glibness and flippancy pass for analysis in conventional journalism.
Having said that, we are grateful to be able to avail ourselves of modern technological resources to bring you chats with people you are probably not going to hear from elsewhere.
Ajay Shamdasani is a veteran writer, editor and researcher based in Hong Kong. He holds an AB in history and government from Ripon College, JD and MIPCT degrees from the University of New Hampshire Franklin Pierce Law School, and an LLM in financial regulation from the Illinois Institute of Technology’s Chicago-Kent College of Law.
His 15-year long career as a financial and legal journalist began as deputy editor of A Plus magazine – the journal of the Hong Kong Institute of Certified Public Accountants. From there, he assumed the helm of Macau Business magazine as its editor-in-chief, and later, joined Asialaw magazine as its deputy editor. More recently, he spent close to seven years as a senior correspondent with Thomson Reuters’ subscription-based trade-wire service Regulatory Intelligence/Compliance Complete (previously called Complinet) in Hong Kong. While there, he covered regulatory developments in that city, as well as Singapore, India and South Korea.