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Digital Securities: 2020 & Beyond

Digital Securities: 2020 & Beyond

by | Jun 3, 2020 | Blog, Events, iComply Insights

Fireside Chat – Digital Securities: 2020 and Beyond

What Is The Next Chapter For Digital Securities?

Date: Thursday, June 25, 2020, 10am PST – 1pm EST – 7pm CET

 

Are Stablecoins, Money Market Tokens, and Structured Products The Next Big Thing in Digital Securities?

Digital securities – an electronic representation of shares, equity, debt on public blockchain – have attracted the attention of the world’s largest banks and corporations for their potential to reduce transaction costs and friction, increase liquidity and transparency in capital markets.

Recently, World Bank Group, JPMorgan, and Societe Generale have made headlines with debt securities and stablecoins. Despite leading experts worldwide predicting the global expansion of digital securities and interest from institutional players is growing – we are still far from mainstream adoption.

iComply is hosting a “Digital Securities: 2020 & Beyond” fireside chat to discuss the current state of the digital securities industry, the role of regulation in mass adoption, as well as benefits and pitfalls of putting structured financial instruments onto public blockchains:

  • Overhyped or underestimated: what is the real value that digital securities can bring to the financial industry
  • Digital securities regulation: what are the key regulatory updates and trends to watch related to digital securities?
  • The future of digital securities: is institutional adoption happening and when?


Register below for free to join the discussion with the leading experts in finance and blockchain.

Register Now

Panelists:

  • Joel Telpner, Senior Partner, Sullivan & Worcester
  • Matthew Unger, CEO, iComply Investor Services
  • Cathy Yoon, Special Counsel, Katten Muchin Rosenman 
  • Arnaud Salomon, CEO, Mt Pelerin

About iComply
iComply Investor Services Inc. (“iComply”) is a Regtech company that provides fully-digital KYC and AML compliance solutions for non-face-to-face financial and legal interactions. iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience. By partnering with multinational technology vendors such as Microsoft, DocuSign, Thomson Reuters and Refinitiv, iComply is bringing compliance teams into the digital age. Learn more: www.icomplyis.com

 

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SEC Ruling Issued Against BitClave ICO

SEC Ruling Issued Against BitClave ICO

by | May 30, 2020 | Compliance Updates, iComply Insights

SEC Ruling Issued Against BitClave ICO

Unregistered $25.5-million ICO issuer ordered to return money to investors

What Happened?

May 28, 2020: The Securities and Exchange Commission (SEC) found BitClave PTE Ltd. of San Jose, California conducted an unregistered Initial Coin Offering (ICO) between June and November 2017​.

Source: https://www.sec.gov/news/press-release/2020-124

Who Is Impacted?

The 9,500+ investors who invested USD $25.5 million into BitClave’s Consumer Activity Token (CAT).

Why This Matters?

Because it was never registered as a security, the public sale of the CAT token violated the registration provisions of federal securities laws in the United States. 

In the US, securities issuers must follow registration requirements, or use a registration exemption such as Reg D or Reg  CF. Token issuers that use US exemptions must follow specific restrictions and thresholds – for both the primary sale and the secondary market of any security they issue. BitClave has been ordered by the SEC to return all the funds they acquired through this token sale.

What’s Next?

Without admitting or denying the SEC’s findings, BitClave has agreed to pay a total disgorgement of USD $25,500,000, a prejudgment interest of USD $3,444,197, and a penalty of USD $400,000. The SEC’s order also establishes a Fair Fund to return monies paid by BitClave to the 9,500+ injured investors.

Finally, BitClave has also agreed to transfer all of the remaining CAT in its possession to the fund administrator for permanent disabling, publish a notice of the SEC’s order through their site, and request the removal of CAT from all virtual asset trading platforms currently listed for sale or trade.

learn more

Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

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SPF, IMDA and MAS Block Unregulated Overseas Online Trading Platform

SPF, IMDA and MAS Block Unregulated Overseas Online Trading Platform

by | May 29, 2020 | Compliance Updates, iComply Insights

SPF, IMDA and MAS Block Unregulated Overseas Online Trading Platform

SPF, IMDA and MAS target AroTrade in response to consumer reported fraud

What Happened?

May 28, 2020:  The Singapore Police Force (SPF), Infocomm Media Development Authority (IMDA), and  Monetary Authority of Singapore (MAS) have all acted to block the website of AroTrade, a trading platform based in Belize purportedly offering Contracts for Difference (CFDs) for a variety of asset classes including commodities, foreign exchange, cryptocurrency stocks, and indices.

Source: https://www.mas.gov.sg/news/media-releases/2020/spf-imda-and-mas-block-unregulated-overseas-online-trading-platform 

Who Is Impacted?

Singapore Police became aware of AroTrade after receiving complaints from approximately 40 residents of Singapore who had transferred funds totalling over USD $330,000. All residents indicated that they experienced unauthorized trades, or were unable to withdraw their money from the AroTrade platform.

Why This Matters?

Investigators found that AroTrade had been engaged in fraudulent marketing tactics, including the creation and use of fake news articles that claimed prominent individuals, including Singapore’s government officials, had endorsed investing in cryptocurrency, a false claim which misled Singaporeans to AroTrade’s website.

Under Section 82 of the Securities and Futures Act (SFA), a capital markets services license is required for an entity to engage in a regulated activity, including dealing CFDs in securities and offering foreign exchange contracts. AroTrade does not possess this license in Singapore and is prohibited from conducting such business in the country. This prohibition extends to persons acting outside Singapore, where there is a substantial and reasonably foreseeable effect for residents of Singapore.

The SPF and MAS have determined that the services offered to Singaporean’s on AroTrade’s website are in breach of the SFA guidelines. Additionally, the IMDA has determined that the false and misleading information published on the AroTrade website constitutes prohibited content under the Internet Code of Practice (ICOP).

What’s Next?

The IMDA has instructed all of Singapore’s Internet Access Service Providers (IASPs) to block Singapore resident access to AroTrade’s website; to date, all IASPs have complied with this request.

The SPF’s investigation into potential additional criminal activity from the overseas trading platform is ongoing.

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Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

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Out of the Filing Cabinet, Into the Cloud

Out of the Filing Cabinet, Into the Cloud

by | May 28, 2020 | Blog, Events, iComply Insights, KYC - Know Your Customer

Fireside Chat: Out of the Filing Cabinet, Into the Cloud

How Digital Onboarding is Transforming Financial Services

Date: Thursday, June 11, 2020, 10am PST – 1pm EST – 7pm CET

 

Does KYC friction impact my ability to gain or retain market share? When it comes to onboarding a new client, financial service providers, online gaming platforms, professional service providers, and virtual asset service providers are facing increasingly complex regulatory burdens from privacy, data security, KYC, and AML legislation.

Our panel of experts will be discussing the key benefits, risks, and considerations of taking your traditional, manual onboarding procedures out of the filing cabinet and moving to automated workflows in the cloud.

Together with the leading experts in digital identity, KYC, AML, and risk management we will discuss:

  • What is digital onboarding: KYC and AML best practices
  • Traditional onboarding: cost and risks of manual procedures
  • Evolution of the onboarding workflow: tips for creating your roadmap
Register Now

Panelists 

  • Matthew Unger, CEO, iComply Investor Services
  • Denisse Rudich, Director, Rudich Consulting
  • Lav Odorovic, CEO, Forto CH 
  • Matt McGuire, Cofounder, AML Shop
  • Mariela Tanchez, Director of Marketing, Bitfoliex

About iComply
iComply Investor Services Inc. (“iComply”) is a Regtech company that provides fully-digital KYC and AML compliance solutions for non-face-to-face financial and legal interactions. iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience. By partnering with multinational technology vendors such as Microsoft, DocuSign, Thomson Reuters and Refinitiv, iComply is bringing compliance teams into the digital age. Learn more: www.icomplyis.com

 

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BCSC Targets Yet Another Cryptocurrency Exchange

BCSC Targets Yet Another Cryptocurrency Exchange

by | May 28, 2020 | Compliance Updates, iComply Insights

BCSC Targets Yet Another Cryptocurrency Exchange

British Columbia Securities Commission adds Cryptec.io to the provincial Investment Caution List

What Happened?

May 27, 2020: Cryptec, a cryptocurrency trading platform incorporated in the Commonwealth of Dominica, has been providing services to residents in the province of British Columbia, without being registered with the local securities regulator​.

According to the BCSC, Cryptec may be considered an exchange under section 25 of the Securities Act, RSBC 1996, c. 418 (the Act), and has not registered as a dealer under section 34 of the Act. Cryptec’s activities are regulated by Canadian legislation, the company has subsequently been added to the IOSCO warnings list.

Source: https://www.bcsc.bc.ca/Enforcement/Investment_Caution_List/Cryptec/

Who Is Impacted?

Online financial services providers that have yet to obtain proper licensing, as well as entities engaged in a business relationship with Cryptec.

Why This Matters?

Due to its failure to comply with British Columbia securities regulations, Cryptec is now listed on international regulatory watch lists such as IOSCO and faces increased scrutiny in the months and years ahead.

This precedent provides clear guidance on when regulators determine a financial platform is required to be registered in their jurisdiction–as soon as you serve your first user, whether or not you have a physical operation in the region. Ignoring this can lead to similar or even more severe actions from regulators such as the BCSC.

What’s Next?

Businesses providing financial services online must ensure they have obtained the proper licensing and registration for every jurisdiction in which they intend to receive new users, and that they follow the regulations in the jurisdictions where those users are domiciled.

Board members and management teams should also ensure that their KYC systems are able to identify when they are engaging with users outside the jurisdictions where they are permitted to operate.

Compliance teams who identify users outside their licensed jurisdictions should be equipped to know how to escalate these instances to management in order to properly consult with local legal and regulatory advisors.

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Is your AML compliance too expensive, time-consuming, or ineffective?

iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.

Request a demo today.

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Vaidyanathan Chandrashekhar

Vaidyanathan Chandrashekhar

Advisors

“Chandy,” is a technology and risk expert with executive experience at Boston Consulting Group, Citi, and PwC. With over two decades in financial services, digital transformation, and enterprise risk, he advises iComply on scalable compliance infrastructure for global markets.
Thomas Linder

Thomas Linder

Advisors

Thomas is a global tax and compliance expert with deep specialization in digital assets, blockchain, and tokenization. As a partner at MME Legal | Tax | Compliance, he advises iComply on regulatory strategy, cross-border compliance, and digital finance innovation.
Thomas Hardjono

Thomas Hardjono

Advisors

Thomas is a renowned identity and cybersecurity expert, serving as CTO of Connection Science at MIT. With deep expertise in decentralized identity, zero trust, and secure data exchange, he advises iComply on cutting-edge technology and privacy-first compliance architecture.
Rodney Dobson

Rodney Dobson

Advisors

Rodney is the former President of ADP Canada and international executive with over two decades of leadership in global HR and enterprise technology. He advises iComply with deep expertise in international service delivery, M&A, and scaling high-growth operations across regulated markets.
Praveen Mandal

Praveen Mandal

Advisors

Praveen is a serial entrepreneur and technology innovator, known for leadership roles at Lucent Bell Labs, ChargePoint, and the Stanford Linear Accelerator. He advises iComply on advanced computing, scalable infrastructure, and the intersection of AI, energy, and compliance tech.
Paul Childerhose

Paul Childerhose

Advisors

Paul is a Canadian RegTech leader and founder of Maple Peak Group, with extensive experience in financial services compliance, AML, and digital transformation. He advises iComply on regulatory alignment, operational strategy, and scaling compliance programs in complex markets.
John Engle

John Engle

Advisors

John is a seasoned business executive with senior leadership experience at CIBC, UBS, and Accenture. With deep expertise in investment banking, private equity, and digital transformation, he advises iComply on strategic growth, partnerships, and global market expansion.
Jeff Bandman

Jeff Bandman

Advisors

Jeff is a former CFTC official and globally recognized expert in financial regulation, fintech, and digital assets. As founder of Bandman Advisors, he brings deep insight into regulatory policy, market infrastructure, and innovation to guide iComply’s global compliance strategy.
Greg Pearlman

Greg Pearlman

Advisors

Greg is a seasoned investment banker with over 35 years of experience, including leadership roles at BMO Capital Markets, Morgan Stanley, and Citigroup. Greg brings deep expertise in financial strategy and growth to support iComply's expansion in the RegTech sector.
Deven Sharma

Deven Sharma

Advisors

Deven is the former President of S&P and a globally respected authority in risk, data, and capital markets. With decades of leadership across financial services and tech, he advises iComply on strategic growth, governance, and the future of trusted data in AML compliance.