Blockchain
From Covid Bounce Back Loan Fraud to Cryptoassets
- 2023’s Top Trends In Corporate Crime And Financial Investigations
LONDON – The Investigations and Resolutions team at leading Chambers 4-5 Gray’s Inn Square predicts key trends.
1. Public inquiries
The Public Inquiries team at 4-5 Gray’s Inn Square has long been associated with high profile and sensitive Public Inquiries. Ramya Nagesh, a barrister who has worked on some of the largest inquiries and inquests of the last decade, including the Undercover Policing Inquiry, the Grenfell Inquiry, the Post Office Inquiry and the Hillsborough Inquests, is clear this area isn’t likely to slow down next year:
“In 2010, the number of simultaneously open public inquiries reached its peak at 16 concurrent open inquiries. Over ten years later, it would be fair to say that the appetite for inquiries has not significantly diminished. In the last few years alone, we have seen the Grenfell Inquiry, the Undercover Policing Inquiry, the Infected Blood Inquiry, the Independent Inquiry into Child Sexual Abuse and we are soon to see the start of the UK Covid-19 Inquiry.”
2. Cryptoassets go mainstream
Rowena Wisniewska Sethi, a barrister specialising in financial regulation, predicts increased regulation on crypto will bring a real need for better understanding of blockchain and DLT (blockchain-based registration system).
She says: “Over the next year, the focus in crypto is likely to be not only on the virtual assets themselves but on the clever ways we can use DLT; for example, as a ‘block’ storage mechanism for digital records across a network, and bulk storing smart contracts (such as travel insurance). HM Treasury announced in April that it will bring stable coins into the UK regulatory perimeter; we will also see an increasing focus on the regulation of some cryptoassets in financial services. Ultimately, this means that cryptoassets are likely to become more mainstream as a form of payment and so it will be important for advisors to have a deep understanding of blockchain and the uses of DLT as well as how cryptoassets are stored and regulated.”
3. Billions in Covid bounce back loan fraud
One area likely to be under scrutiny is fraud emerging from the Government’s Covid-19 financial support packages.
White-collar crime expert barrister Raoul Colvile, says:
“Around £47 billion of loans were issued, and it is estimated that around 11% (£4.9 billion) were potentially fraudulently obtained. From a legal perspective, there are various routes that may be open to enforcement agencies, in both the criminal and civil spheres. There is obvious scope for fraud charges, and there are examples of Account Freezing Orders being obtained. Outside the criminal sphere, director disqualifications, bankruptcy restrictions, and winding up petitions have all been pursued.”
A barrister specialising in investigations, Max Shephard, says: “The government recently announced that it will be closing down the Taxpayer Protection Taskforce, a unit charged with the recovery of stolen money from Covid support schemes, in March next year. Given the ongoing cost of living crisis, and the highly political nature of preserving public funds, it will be interesting to see what lies ahead in a counter-fraud landscape.”
4. Non-financial misconduct
In the aftermath of both MeToo and 2020’s racial justice protests, there will continue to be scrutiny on non-financial forms of misconduct, including sexual misconduct, racism and bullying or harassment.
Public and regulatory law expert Thomas Francis, says: “In recent years the FCA has opened several investigations into alleged non-financial misconduct, of which some high-profile examples include the financial penalty imposed on the former CEO of Barclays in relation to attempts to unmask a whistle-blower and the prohibitions sought and obtained against three IFAs convicted in 2018 of serious sexual offences. This heightened focus, carrying with it the possibility of enforcement action, has had an industry-wide effect – and will continue to do so over the coming years.”
5. The battle against money laundering in offshore jurisdictions
Nikesh Pandit, a barrister specialising in financial services, says: “Our barristers are regularly instructed by offshore clients, including offshore financial regulators. A key area of instructions in this regard is anti-money laundering (AML) and combating terrorist financing (CTF) investigations. This reflects an increasing drive in offshore jurisdictions to counter money laundering and the financing of terrorism through the implementation of international standards and enhanced resources for national authorities to take action.”
Regulatory specialist Iulia Şaran, says: “Whilst challenges remain, recent MONEYVAL (Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism) reports have highlighted improvements. For example, the application of corrective sanctions for infringements of legislation in Gibraltar, Estonia, Jersey and Malta, which aim to make sanctions for violations of anti-money laundering standards more effective and dissuasive. Jersey has been recognised for introducing a digital register which leverages AI technology and third-party KYC (Know Your Client) data for improved vetting of beneficial ownership and control.”
— ENDS–
FOR MORE INFORMATION CONTACT Kathryn Adamson, [email protected], Mobile (+44) 0771 713 3595
NOTES TO EDITORS
4-5 Gray’s Inn Square is a leading public and commercial law chambers. The core areas of law are public, commercial, planning & property, dispute resolution, international, regulatory & disciplinary and sports. The Investigations & Resolutions team has considerable expertise in different regimes and sectors. In particular, our business crime and financial regulation specialists have significant first-hand experience of working with prosecutors and regulators at every stage. In addition, 4-5 Gray’s Inn Square’s public inquiries team have been involved in some of the most notable cases in recent times.
Source: RealWire
Blockchain
Glidelogic Corp. Announces Revolutionary AI-Generated Content Copyright Protection Solution
Blockchain
Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them
The financial landscape is rapidly evolving, with the integration of blockchain technology and cryptocurrencies becoming more prominent. Among these, Ethereum ETFs (Exchange-Traded Funds) have emerged as a significant investment vehicle, offering exposure to the Ethereum blockchain’s native cryptocurrency, Ether (ETH), without requiring direct ownership. However, it’s crucial to understand that Ethereum ETFs are distinct from the blockchain itself and serve different purposes in the investment world.
Understanding Ethereum and ETFs
Ethereum: A decentralized platform that enables the creation and execution of smart contracts and decentralized applications (dApps). It operates using its cryptocurrency, Ether (ETH), which fuels the network.
ETF (Exchange-Traded Fund): A type of investment fund that holds a collection of assets and is traded on stock exchanges. ETFs can include various asset classes, such as stocks, commodities, or bonds.
Ethereum ETFs: The Intersection of Traditional Finance and Cryptocurrency
An Ethereum ETF provides a way for investors to gain exposure to the price movements of Ether without directly purchasing the cryptocurrency. This is achieved through an ETF structure, where the fund holds assets linked to the value of Ether, and investors can buy shares of the ETF on traditional stock exchanges.
Key Features of Ethereum ETFs:
- Indirect Exposure: Investors gain exposure to Ether’s price changes without needing to manage or store the cryptocurrency themselves.
- Regulatory Compliance: Unlike the relatively unregulated cryptocurrency market, ETFs operate under the oversight of financial regulators, offering a layer of investor protection.
- Accessibility: Ethereum ETFs are available through traditional brokerage platforms, making them accessible to a broader range of investors.
Why Invest in an Ethereum ETF?
- Diversification: Including an Ethereum ETF in a portfolio can provide exposure to the cryptocurrency market, potentially enhancing diversification beyond traditional assets.
- Convenience and Familiarity: ETFs are a familiar investment product, simplifying the process of investing in cryptocurrencies.
- Professional Management: ETF managers handle the investment decisions, including the buying and selling of assets, which can be advantageous for those less familiar with the cryptocurrency space.
- Regulatory Oversight: ETFs are subject to regulatory scrutiny, potentially offering more safety and transparency compared to direct cryptocurrency investments.
- Potential for Growth: As the cryptocurrency market grows, ETFs linked to assets like Ether may benefit from rising prices.
Key Differences Between Ethereum and Ethereum ETFs
While both are related to the Ethereum blockchain, Ethereum itself and Ethereum ETFs represent different forms of investment:
- Ethereum (ETH):
- Direct ownership of the cryptocurrency.
- Full exposure to Ethereum’s features, including staking and network participation.
- Traded on cryptocurrency exchanges.
- Highly volatile and largely unregulated.
- Ethereum ETF:
- Indirect exposure through shares representing Ether’s value.
- Traded on traditional stock exchanges under regulatory oversight.
- Offers a more stable and familiar investment structure.
- Typically lower volatility compared to direct cryptocurrency ownership.
Future Considerations for Ethereum ETFs
The approval and launch of Ethereum ETFs mark a significant milestone in bringing cryptocurrencies closer to mainstream finance. They offer a convenient and regulated means for investors to gain exposure to the growing digital assets market. However, they also come with limitations, such as not allowing direct participation in the Ethereum ecosystem’s innovations, like dApps and smart contracts.
As the market evolves, we may see more sophisticated financial products that better capture the full potential of the Ethereum ecosystem. For now, Ethereum ETFs provide a balanced option for those interested in cryptocurrency exposure within the framework of traditional finance.
In conclusion, while Ethereum ETFs offer a gateway into the world of digital assets, they should be viewed as complementary to, rather than a replacement for, direct investment in the underlying blockchain technologies. Investors should carefully consider their investment goals, risk tolerance, and the unique attributes of both Ethereum and Ethereum ETFs when making investment decisions.
Source: blockchainmagazine.net
The post Ethereum ETFs Aren’t Blockchain But Is A Revolutionary Tech: Top 6 Amazing Reasons To Invest In Them appeared first on HIPTHER Alerts.
Nexo, a leading institution in the digital assets industry, has reinforced its commitment to data security by renewing its SOC 2 Type 2 audit and attaining a new SOC 3 Type 2 assessment without any exceptions. This rigorous audit process, conducted by A-LIGN, a respected independent auditor specializing in security compliance, confirms Nexo’s adherence to stringent Trust Service Criteria for Security and Confidentiality.
Key Achievements and Certifications
- SOC 2 and SOC 3 Compliance:
- SOC 2 Type 2: This audit evaluates and reports on the effectiveness of an organization’s controls over data security, particularly focusing on the confidentiality, integrity, and availability of systems and data.
- SOC 3 Type 2: This public-facing report provides a summary of SOC 2 findings, offering assurance to customers and stakeholders about the robustness of Nexo’s data security practices.
- Additional Trust Service Criteria:
- Nexo expanded the scope of these audits to include Confidentiality, showcasing a deep commitment to protecting user data.
- Security Certifications:
- The company also adheres to the CCSS Level 3 Cryptocurrency Security Standard, and holds ISO 27001, ISO 27017, and ISO 27018 certifications, awarded by RINA. These certifications are benchmarks for security management and data privacy.
- CSA STAR Level 1 Certification:
- This certification demonstrates Nexo’s adherence to best practices in cloud security, further solidifying its position as a trusted partner in the digital assets sector.
Impact on Customers and Industry Standards
Nexo’s rigorous approach to data protection and compliance sets a high standard in the digital assets industry. By achieving these certifications, Nexo provides its over 7 million users across more than 200 jurisdictions with confidence in the security of their data. These achievements not only emphasize the company’s dedication to maintaining top-tier security standards but also highlight its proactive stance in fostering trust and transparency in digital asset management.
Nexo’s Broader Mission
As a premier institution for digital assets, Nexo offers a comprehensive suite of services, including advanced trading solutions, liquidity aggregation, and tax-efficient credit lines backed by digital assets. Since its inception, the company has processed over $130 billion, showcasing its significant impact and reliability in the global market.
In summary, Nexo’s successful completion of SOC 2 and SOC 3 audits, along with its comprehensive suite of certifications, underscores its commitment to the highest standards of data security and operational integrity. This dedication positions Nexo as a leader in the digital assets space, offering unparalleled security and peace of mind to its users.
Source: blockchainreporter.net
The post Nexo Reaffirms Commitment to Data Protection with SOC 3 and SOC 2 Compliance appeared first on HIPTHER Alerts.
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