Compliance and Regulation Archives

Compliance and Regulation

How GIACT Approaches Risk Management & OFAC Compliance

November 8, 2019

When the United States implements sanctions against a country or a group of individuals, domestic companies are required not to...

IoT

Taming the Wild West of IoT

by David Nelyubin

October 29, 2019

The term Internet of Things (IoT) is defined as a network of “things” (devices) that are connected to the internet,...

Compliance and Regulation

Seizing the Opportunity of PCI DSS Compliance

by Arnaud Crouzet

October 27, 2019

As data breaches continue to rise globally, protecting the integrity of customer data (especially in the payments world) is vital. One essential...

Compliance and Regulation

More Bank Charter Chatter

by Sarah Grotta

October 25, 2019

While the Office of the Comptroller of Currency's (OCC) fintech banking charter is going to be taken up by the...

Compliance and Regulation

Is This the End for the OCC Fintech Charter?

by Sarah Grotta

October 23, 2019

Ever since the Office of the Comptroller of the Currency (OCC) introduced the idea of a special charter for non-bank...

Compliance and Regulation

Technical Challenge or Business Enabler? Seizing the Opportunity of PCI DSS Compliance

by Arnaud Crouzet

October 17, 2019

As data breaches continue to rise globally, protecting the integrity of customer data (especially in the payments world) is vital. One essential...

As the CEO of Clarus Merchant Services and a member of the merchant service and processing industry for over 20 years, I’ve seen a lot of emerging technologies and payment solutions that were going to revolutionize how consumers buy and sell goods. I deliberately moved into the electronic payment industry after personally owning thousands of ATM machines. I saw an incredible opportunity for the future of cashless payments, which would solve the need for better transparency for merchants who were working in a convoluted system wrought with hidden fees. I knew this from personal experience as I was once a merchant myself with several restaurants. Today, the big question that I am consistently asked is, “How is Cryptocurrency going to disrupt the mainstream electronic payment industry?” The transfer of assets has always been based on trust. Like the early years of crypto, the early years of banking in the U.S. was like the Wild West, as there was little regulation over banks and how they conducted business. That lack of trust led to the Great Depression of 1929. Trust was restored to the money system after the government reorganized its federal oversight of banks and added FDIC insurance for deposits. Trust in private financial institutions also played an important role in the mass adoption of credit cards. The first credit card – the Diner’s Club Card – was created in 1950. But the adoption of this new method of payment didn’t take off until Bank of America and other financial institutions issued the cards that established the Visa and MasterCard systems. Today, cryptocurrency is at a similar crossroads. Less than a year ago, it remained in the fringes and even went through its “Crypto Winter.” But last fall, crypto’s image began to change as major organizations began to announce their own venture into issuing digital coins. It started with JP Morgan’s announcement that it would issue a coin. But it was Facebook that brought crypto into focus as the mainstream and digital media pushed the news of Libra. With the U.S Senate Banking Committee recently holding hearings, it’s clear that if Crypto is going to take mainstream transacting adoption it must have the regulatory oversight that credit cards do so all of us can feel safe in trusting those transactions. “Crypto is a new asset class and should be regulated as such,” Circle CEO Jeremy Allaire said. Regulation of cryptocurrencies is a challenging issue that is slowly being addressed on global and national levels in varying degrees. In some countries, such as Germany, bitcoin is recognized as a “unit of account” which citizens may trade freely. Other countries including Switzerland have taken a similar stance in recognizing cryptocurrencies as assets, but are also adopting laws to determine the status of the digital coins as securities and their taxability. The U.S. Government has yet to issue regulations specific to digital currencies and continues to proceed cautiously. “Although cryptocurrencies are innovative and may provide benefits related to automation and validation, they also pose challenges associated with speculative dynamics, investor and consumer protections, money-laundering risks, and governance,” the Board of Governors of the Federal Reserve System recently said. The Federal Reserve staff continues to “monitor and analyze developments across the spectrum of digital currencies to understand tradeoffs and to consider further these developments in the broader context of widespread payment innovations.” Specific relations to digital assets aside, all cryptocurrencies must comply with Federal regulations regarding money and banking, such as the Bank Secrecy Act, according to Treasury Secretary Steven Mnuchin. Cryptocurrencies must also meet anti-money laundering and counterfeiting standards, and must register with the Financial Crimes Enforcement Network. In addition, many states have adopted their own wide-ranging regulations, such as California, Texas and New York, where its controversial BitLicense regulates companies or persons residing in the state and using cryptocurrencies. Looking at crypto from the merchant side of the equation, the adoption of Federal Reserve Standards specific to cryptocurrencies will provide a framework that can open the door for digital coins to be readily accepted and processed at the point of sale. The Fed’s standards will set precedents and parameters on what form of cryptocurrency (such as a stablecoin, which is not meant to be speculative and is tied to traditional assets such as the U.S. dollar or gold) can be exchanged for goods and services.

Cryptocurrency

Mass Adoption of Crypto: It’s Coming with Regulation!

by Randy Tillim

October 16, 2019

As the CEO of Clarus Merchant Services and a member of the merchant service and processing industry for over 20...

Compliance and Regulation

Credit Card Collection Agencies Must Navigate 9 Federal Regulations:

by PaymentsJournal

October 15, 2019

Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen...

Contactless

When Fraud Prevention Clashes with a Good User Experience

by PaymentsJournal

October 7, 2019

Strong customer authentication or SCA is a requirement of the EU’s Revised Directive on Payment Services or PSD2. The requirement requires that payments...

Compliance and Regulation

Dear CFPB: Members of Congress Send a Letter Regarding International Remittances

by Sarah Grotta

October 1, 2019

Way back in 2013 through 2015, the Consumer Financial Protection Bureau (CFPB) implemented new rules in the international consumer money...

Compliance and Regulation

How GIACT Approaches Risk Management & OFAC Compliance

Taming the Wild West of IoT

Seizing the Opportunity of PCI DSS Compliance

More Bank Charter Chatter

Is This the End for the OCC Fintech Charter?

Technical Challenge or Business Enabler? Seizing the Opportunity of PCI DSS Compliance

Mass Adoption of Crypto: It’s Coming with Regulation!

Credit Card Collection Agencies Must Navigate 9 Federal Regulations:

When Fraud Prevention Clashes with a Good User Experience

Dear CFPB: Members of Congress Send a Letter Regarding International Remittances

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