Fintech
House Approves Anti-Illicit Cryptocurrency Financing Bill That Aims to Create Working Group to Protect Financial Technology
KEY POINTS
- The proposed bill states that the working group should involve major players in the cryptocurrency industry
- The goal is to provide cryptocurrencies with an environment to grow without fear of exploitation, said Congressman Nunn
- House members have increasingly shown support for cryptocurrency-focused legislation
The U.S. House of Representatives on Monday passed a bill to establish a fintech working group focused on combating terrorism and illicit financing in the digital asset sector.
Financial Technology Protection
Introduced by Iowa Republican Representative Zach Nunn, the “Financial Technology Protection Act of 2023“aims to establish an independent working group on financial technology at the Treasury Department that will “combat terrorism and illicit financing” in the cryptocurrency sector.
Under the proposed legislation, the working group must involve not only relevant federal agencies, such as the Treasury’s Financial Crimes Unit and the Department of Justice (DOJ), but also key stakeholders in the cryptocurrency industry.
The working group is expected to include representatives from fintech companies, blockchain intelligence firms, financial institutions, research groups, and institutions or organizations “focused on individual privacy and civil liberties.”
Tasks of the working group
The resolution states that the working group should “conduct research on terrorist and illicit uses of new financial technologies, including digital assets,” and develop regulatory recommendations to improve U.S. efforts to combat terrorism, money laundering, and illicit financing.
The House passage of the bill comes at a critical time for the cryptocurrency industry, as concerns remain about the potential use of digital assets by terrorists and threat actors.
Cryptocurrencies are here to stay: Nunn
During Monday’s session, Nunn noted that “blockchain technology and digital assets are here to stay, and we need an environment where they can grow in the United States without being exploited by adversaries.”
Nunn also stressed the need for collaboration between industry players and federal agencies to protect innovative technologies in the financial world. He said the working group would include “private organizations and their innovation, as well as private sector experts to combat terrorism and illicit financing on digital platforms.”
He said the protections are needed not only to protect the American public from threat actors, but also from U.S. adversaries, including the People’s Republic of China and the Russian Federation.
Nunn’s comments are backed by data, as blockchain intelligence firm Chainalysis said in a 2022 report relationship that certain groups and individuals from Russia “account for a disproportionate share of activity in various forms of cryptocurrency-based crime.”
House Lawmakers Take Cryptocurrency More Seriously Than Ever
More and more House lawmakers are recognizing the potential of cryptocurrencies, as evidenced by the increase in cryptocurrency-related bills passed by the House in recent months, one of which Block the Federal Reserve from the issuance of a central bank digital currency (CBDC).
The bill narrowly passed the House in May, but GOP members who voted for the bill hailed the milestone, saying it would prevent the government from “spying” on American citizens’ financial activities.
Probably the biggest breakthrough in Congress was the passage of a resolution that sought to establish a regulatory framework for cryptocurrenciesThe bill won overwhelming support from Democratic members of the House, signaling a shift in tone among Democrats who had previously remained largely silent on their views on digital assets.
Fintech
Lloyds and Nationwide invest in Scottish fintech AI Aveni
Lloyds Banking Group and Nationwide have joined an ÂŁ11m Series A funding round in Scottish artificial intelligence fintech Aveni.
The investment is led by Puma Private Equity with additional participation from Par Equity.
Aveni creates AI products specifically designed to streamline workflows in the financial services industry by analyzing documents and meetings across a range of operational functions, with a focus on financial advisory services and consumer compliance.
The cash injection will help fund the development of a new product, FinLLM, a large-scale language model created specifically for the financial sector in partnership with Lloyds and Nationwide.
Joseph Twigg, CEO of Aveni, explains: “The financial services industry doesn’t need AI models that can quote Shakespeare, it needs AI models that offer transparency, trust and, most importantly, fairness. The way to achieve this is to develop small, highly tuned language models, trained on financial services data, vetted by financial services experts for specific financial services use cases.
“FinLLM’s goal is to set a new standard for the controlled, responsible and ethical adoption of generative AI, outperforming all other generic models in our selected financial services use cases.”
Robin Scher, head of fintech investment at Lloyds Banking Group, says the development programme offers a “massive opportunity” for the financial services industry by streamlining operations and improving customer experience.
“We look forward to supporting Aveni’s growth as we invest in their vision of developing FinLLM together with partners. Our collaboration aims to establish Aveni as a forerunner in AI adoption in the industry, while maintaining a focus on responsible use and customer centricity,” he said.
Fintech
Fairexpay: Risk consultancy White Matter Advisory acquires 90% stake in fintech Fairexpay
Treasury Risk Consulting Firm White Matter Alert On Monday he announced the acquisition of a 90% stake in the fintech startup Fair payment for an undisclosed amount. The acquisition will help White Matter Advisory expand its portfolio in the area of cross-border remittance and fundraising services, a statement said. White Matter Advisory, which operates under the name SaveDesk (White Matter Advisory India Pvt Ltd), is engaged in the treasury risk advisory business. It oversees funds under management (FUM) totaling $8 billion, offering advisory services to a wide range of clients.
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White Matter Advisory, based in Bangalore, helps companies navigate the complexities of treasury and risk management.
Fairexpay, authorised by the Reserve Bank of India (RBI) under Cohort 2 of the Liberalised Remittance Scheme (LRS) Regulatory Sandbox, boasts features such as best-in-class exchange rates, 24-hour processing times and full security compliance.
“With this acquisition, White Matter Advisory will leverage Fairexpay’s advanced technology platform and regulatory approvals to enhance its services to its clients,” the release reads.
The integration of Fairexpay’s capabilities should provide White Matter Advisory with a competitive advantage in the cross-border remittance and fundraising market, he added.
The release also states that by integrating Fairexpay’s advanced technology, White Matter Advisory aims to offer seamless and convenient cross-border payment solutions, providing customers with secure options for international money transfers.
Fintech
Rakuten Delays FinTech Business Reorganization to 2025
Rakuten (Japan:4755) has released an update.
Rakuten Group, Inc. and Rakuten Bank, Ltd. announced a delay in the reorganization of Rakuten’s FinTech Business, moving the target date from October 2024 to January 2025. The delay is to allow for a more comprehensive review, taking into account regulatory, shareholder interests and the group’s optimal structure for growth. There are no anticipated changes to Rakuten Bank’s reorganization objectives, structure or listing status outside of the revised timeline.
For more insights on JP:4755 stock, check out TipRanks Stock Analysis Page.
Fintech
White Matter Advisory Acquires 90% Stake in Fintech Startup Fairexpay
You are reading Entrepreneur India, an international franchise of Entrepreneur Media.
White Matter Advisory, which operates under the name SaveDesk in India, has announced that it is acquiring a 90% stake in fintech startup Fairexpay for an undisclosed amount.
This strategic move aims to strengthen White Matter Advisory’s portfolio in cross-border remittance and fundraising services.
By integrating Fairexpay’s advanced technology, White Matter Advisory aims to offer seamless and convenient cross-border payment solutions, providing customers with secure options for international money transfers.
White Matter Advisory, known for its treasury risk advisory services, manages funds under management (FUM) totaling USD 8 billion.
Founded by Bhaskar Saravana, Saurabh Jain, Kranthi Reddy and Piuesh Daga, White Matter Advisory helps companies effectively manage the complexities of treasury and risk management.
The SaveDesk platform offering includes a SaaS-based FX market data platform with real-time feeds for over 100 currencies, bank cost optimization services, customized treasury risk management solutions, and compliance guidance for the Foreign Exchange Management Act (FEMA) and other trade regulations.
Fairexpay is a global aggregation platform offering competitive currency exchange rates from numerous exchange partners worldwide. Catering to both private and corporate customers, Fairexpay provides seamless money transfer solutions for education, travel and immigration, as well as simplifying cross-border payments via API and white-label solutions for businesses. Key features include competitive currency exchange rates, 24-hour processing times, extensive currency coverage of over 30 currencies in more than 200 countries, and secure, RBI-compliant transactions.
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