5. Navigating the Regulatory Landscape.mp4

5. Navigating the Regulatory Landscape.vtt

ENGLISH

{{00:00:08}}
If we are talking about crypto,
MiCA in Europe will be one of the

{{00:00:14}}
key, challenges for crypto companies
in coming six to nine months.

{{00:00:21}}
And MiCA is a really great
MiCA is a new kind of single

{{00:00:26}}
regulation for a lot of countries.

{{00:00:30}}
In Europe and we in Mercurio
have MiCA radio license for that.

{{00:00:35}}
And actually any crypto company
should think about having

{{00:00:39}}
mic a compliant license.

{{00:00:41}}
In Europe, we're talking
about, long-term perspective.

{{00:00:47}}
The key thing for crypto companies would
be to become more local, to have a local

{{00:00:53}}
license all over the world in markets,
which are key markets for crypto company.

{{00:00:58}}
So there you should focus your attention
and have a local presence, local

{{00:01:03}}
office and finally local license.

{{00:01:06}}
It's always been the case that one
of the biggest challenges for a

{{00:01:09}}
regulator is to keep up with the
pace of the change with the industry.

{{00:01:12}}
Fintech has been moving fast.

{{00:01:14}}
But actually, there's so many
technological advancements that are

{{00:01:17}}
just accelerating at breakneck speed.

{{00:01:19}}
And Artificial Intelligence, AI being
probably the best example of this.

{{00:01:24}}
If you just think how far things have
moved, even in 6 to 12 months, often

{{00:01:28}}
regulation is several years behind.

{{00:01:30}}
But when the technology is moving at
this ever increasing pace, the ability

{{00:01:34}}
to stay on top of it, to understand
the harms, the risks, To understand the

{{00:01:37}}
opportunities, it is going to be a huge
challenge, so don't claim to have the

{{00:01:41}}
answers, but this is definitely one of
the biggest regulatory trends we'll see,

{{00:01:45}}
and how they can adapt to, stay ahead
of, and ultimately not squash innovation

{{00:01:51}}
at the same time as making sure that
it doesn't create customer harm or

{{00:01:55}}
unforeseen outcomes is one of the biggest
challenges I think both regulators and

{{00:01:59}}
FinTechs are going to face together.

{{00:02:02}}
From my perspective, I believe
there's going to be enforcement

{{00:02:05}}
of existing regulatory obligations
that we have in the books.

{{00:02:08}}
When you look at the current landscape
of regulation, we do have quite

{{00:02:12}}
a lot of them, and I believe they
cover a huge variety of aspects and

{{00:02:17}}
sectors and obligations and different,
expectations from the market.

{{00:02:25}}
It's going to be a lot more of the
enforcement, and it's already started.

{{00:02:29}}
When you think about Banking as a
Service which is now one of the buzzwords

{{00:02:33}}
that we have in finance, the American
regulators are now climbing down quite

{{00:02:38}}
hard On companies in the States that
operate Banking as a Service operations.

{{00:02:46}}
And the same is going to start happening
in the UK because what you wouldn't

{{00:02:49}}
have, or you have, is a situation
whereby you've got other regulators

{{00:02:53}}
across the world maintaining a very
high gold standard when it comes to

{{00:02:57}}
adherence to regulatory obligations.

{{00:03:00}}
And then we, as the UK, we start to take
a step back, or we pull back from our

{{00:03:05}}
obligations to actually enforce them.

{{00:03:06}}
So what I would see, or what I expect
to see, is a stronger enforcement

{{00:03:11}}
of all the regulatory obligations
that we actually have on the books.

{{00:03:14}}
And that might mean that some
fintechs will have to shut down

{{00:03:17}}
because they are not complying.

{{00:03:19}}
But again, as I say it creates
opportunities where others will be able

{{00:03:23}}
to spur up and then start innovating,
ensure that we can actually meet the

{{00:03:28}}
obligations that we have to meet.

{{00:03:31}}
I think AI is definitely
something that the FCA is keeping

{{00:03:35}}
their, finger on the pulse.

{{00:03:37}}
ESG is always a evolving, evolving topic.

{{00:03:42}}
With AI I think there are so many
benefits that consumers can get from

{{00:03:47}}
the technology that it brings and the
opportunities that it, can bring to them.

{{00:03:51}}
But, not just necessarily Fintech
companies, social media companies, I

{{00:03:57}}
think also need to be responsible for The
eatfakes that are generated by AI that

{{00:04:04}}
can generate financial content it can
look really, trustworthy and I think it,

{{00:04:10}}
the, in terms of users looking at content,
it's really hard to distinguish whether

{{00:04:16}}
it's coming from a trustworthy source or
not, I think it really is a responsibility

{{00:04:20}}
of social media companies to be able to
verify users and then for FinTech startup

{{00:04:27}}
to be able to make content, responsibly.

{{00:04:33}}
The FCA has identified AI as a big, a
big, it's changing a lot in the industry

{{00:04:40}}
and I think it's for the better, but
it's something we're, keeping an eye on.

{{00:04:44}}
I think the major challenge, not just to
startups, but for any, FinTech company

{{00:04:52}}
is the pace of the regulatory change.

{{00:04:57}}
Speaking of startups specifically
and I'm speaking as a founder of

{{00:05:01}}
a startup, one of the biggest.

{{00:05:04}}
Challenges is getting over
that barrier where you can

{{00:05:07}}
start providing the services.

{{00:05:09}}
So in the past that was getting the
license, getting the technology,

{{00:05:13}}
and some banking relationships.

{{00:05:15}}
Today it's not enough to have a license.

{{00:05:18}}
You also need to have the
methodology for the risk management.

{{00:05:21}}
You need to have the internal expertise.

{{00:05:23}}
You have, you need to have the
technology that is capable of

{{00:05:27}}
implementing that methodology.

{{00:05:30}}
And you need to make sure that your
providers trust you in following.

{{00:05:37}}
All these follow your own methodology.

{{00:05:41}}
That's the major challenge for
us and for a startup today.

{{00:05:44}}
I think starting today, FinTech
company would require getting

{{00:05:50}}
across a very significant barrier.

{{00:05:55}}
I think the two areas I would
focus on are KYC and AML.

{{00:05:59}}
That touches every part of every
FinTech's life and it's constantly moving.

{{00:06:03}}
Changing landscape when it comes
to adherence to the various

{{00:06:06}}
regulations for money laundering and
knowing your clients knowing your

{{00:06:11}}
business for that matter as well.

{{00:06:12}}
And the second one is
data security and privacy.

{{00:06:16}}
With the advent of AI and the use of AI, I
think that how we actually look after data

{{00:06:21}}
and, keep that safe, especially for end
consumers, if we're talking about FinTechs

{{00:06:25}}
in the payment space, for instance.

{{00:06:27}}
is going to be a significant challenge
over the next couple of years,

{{00:06:30}}
actually the next couple of decades.

If we are talking about crypto,
MiCA in Europe will be one of the

key, challenges for crypto companies
in coming six to nine months.

And MiCA is a really great
MiCA is a new kind of single

In Europe and we in Mercurio
have MiCA radio license for that.

And actually any crypto company
should think about having

In Europe, we're talking
about, long-term perspective.

The key thing for crypto companies would
be to become more local, to have a local

license all over the world in markets,
which are key markets for crypto company.

So there you should focus your attention
and have a local presence, local

It's always been the case that one
of the biggest challenges for a

regulator is to keep up with the
pace of the change with the industry.

But actually, there's so many
technological advancements that are

And Artificial Intelligence, AI being
probably the best example of this.

If you just think how far things have
moved, even in 6 to 12 months, often

But when the technology is moving at
this ever increasing pace, the ability

to stay on top of it, to understand
the harms, the risks, To understand the

opportunities, it is going to be a huge
challenge, so don't claim to have the

answers, but this is definitely one of
the biggest regulatory trends we'll see,

and how they can adapt to, stay ahead
of, and ultimately not squash innovation

at the same time as making sure that
it doesn't create customer harm or

unforeseen outcomes is one of the biggest
challenges I think both regulators and

From my perspective, I believe
there's going to be enforcement

of existing regulatory obligations
that we have in the books.

When you look at the current landscape
of regulation, we do have quite

a lot of them, and I believe they
cover a huge variety of aspects and

sectors and obligations and different,
expectations from the market.

It's going to be a lot more of the
enforcement, and it's already started.

When you think about Banking as a
Service which is now one of the buzzwords

that we have in finance, the American
regulators are now climbing down quite

hard On companies in the States that
operate Banking as a Service operations.

And the same is going to start happening
in the UK because what you wouldn't

have, or you have, is a situation
whereby you've got other regulators

across the world maintaining a very
high gold standard when it comes to

And then we, as the UK, we start to take
a step back, or we pull back from our

So what I would see, or what I expect
to see, is a stronger enforcement

of all the regulatory obligations
that we actually have on the books.

And that might mean that some
fintechs will have to shut down

But again, as I say it creates
opportunities where others will be able

to spur up and then start innovating,
ensure that we can actually meet the

I think AI is definitely
something that the FCA is keeping

ESG is always a evolving, evolving topic.

With AI I think there are so many
benefits that consumers can get from

the technology that it brings and the
opportunities that it, can bring to them.

But, not just necessarily Fintech
companies, social media companies, I

think also need to be responsible for The
eatfakes that are generated by AI that

can generate financial content it can
look really, trustworthy and I think it,

the, in terms of users looking at content,
it's really hard to distinguish whether

it's coming from a trustworthy source or
not, I think it really is a responsibility

of social media companies to be able to
verify users and then for FinTech startup

The FCA has identified AI as a big, a
big, it's changing a lot in the industry

and I think it's for the better, but
it's something we're, keeping an eye on.

I think the major challenge, not just to
startups, but for any, FinTech company

Speaking of startups specifically
and I'm speaking as a founder of

Challenges is getting over
that barrier where you can

So in the past that was getting the
license, getting the technology,

You also need to have the
methodology for the risk management.

You have, you need to have the
technology that is capable of

And you need to make sure that your
providers trust you in following.

That's the major challenge for
us and for a startup today.

I think starting today, FinTech
company would require getting

I think the two areas I would
focus on are KYC and AML.

That touches every part of every
FinTech's life and it's constantly moving.

Changing landscape when it comes
to adherence to the various

regulations for money laundering and
knowing your clients knowing your

And the second one is
data security and privacy.

With the advent of AI and the use of AI, I
think that how we actually look after data

and, keep that safe, especially for end
consumers, if we're talking about FinTechs

is going to be a significant challenge
over the next couple of years,

Fintech Founders explores navigating the regulatory landscape and tackling the top challenges for fintech start-ups in the coming years with Henry Orunkoya, Founder, Wollette, Nikki Hawkes, Co-Founder, Stratiphy, Dima Kats, Founder & CEO, Clear Junction, Ben Parke, Founder & CEO, Eflow Global, Petr Kozyzkov, Co-Founder & CEO, Mercuryo and Matt Ford, Co-Founder & CEO, Sidekick.

