Write it, cut it, paste it, save it, load it, check it, regulate it — Technologic

Regulate it!

The advance of blockchain technology is presenting financial regulatory bodies like the FINMA with new challenges to regulate functionalities which may resemble known models but often strongly deviate from those models on a technological level. In case of FINMA, regulators so far have demonstrated a patient and thorough approach towards regulating these new technologies with the “banking light” license and sandbox environments.

While the regulators’ openness is the main condition to enable innovation in the fintech sector, technology experts have to give authorities a deeper understanding of underlying technologies and actively shape regulations by proposing ways to regulate them in a reasonable way. Therefore we see three main points as crucial to consider in discussions with regulators for the development of a regulatory framework for asset management on distributed technologies.