Regulatory Ramblings

Ep 28 with Sinyee Koh, Director of Compliance & Regulatory Consulting at Integrity Consulting in Singapore A Singaporean to her core, Sinyee also called Hong Kong home for a time. As an admitted solicitor and advocate in the Lion City, she is also a licensed solicitor in Hong Kong and a solicitor-advocate in England and Wales. She is also admitted to practice in the US state of New York. Beyond having practiced law, Sinyee has also worked at multiple consulting firms such as Kroll and Duff & Phelps, and for a time was a regulator – having served as a deputy director at the Monetary Authority of Singapore (MAS). She chats with Regulatory Ramblings’ host Ajay Shamdasani about her background and upbringing, why she chose law as a career path, how she transitioned into a career in compliance and consulting, as well as her time as a regulator at the MAS. However, the meat of their discussion centres on the fact that with digital finance growing, so too has the use of digital identity verification, with some governments moving in the direction of rolling out national digital identity. Retail customer scams in digital finance, including those compromising national digital identities, are also increasing in both Hong Kong, Singapore and elsewhere. There have been a few policy responses in the Lion City, including changing money laundering laws to make it easier to prosecute those who sell their national digital identity credentials. A key policy challenge being deliberated on, however, is in deciding who should bear the loss in digital finance scams – financial institutions, customers or other parties: especially if none of them were at fault.HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Vivien Khoo is the Chairman and co-founder of the Asia Crypto Alliance, an industry association that promotes the growth and development, as well as safeguarding the reputation, of virtual assets providers in Asia. She is also a Senior Advisor of StashAway, a digital wealth management platform with more than USD 1bn of assets under management and the APAC Advisor of Delphi Digital, an independent research boutique providing institutional-grade analysis on the digital asset market. After a long career in senior compliance and regulatory roles, Vivien moved into the digital industry in 2019 where she was the Global Chief Operating Officer and Interim CEO at a leading crypto derivatives exchange. Prior to that, Vivien spent close to two decades at Goldman Sachs where she was the managing director of Goldman Sachs’ Asia Pacific Ex-Japan Compliance division. Vivien had also spent time as a regulator with the HK Securities & Futures Commission. Vivien’s move across from traditional finance into digital assets was motivated by a realisation that society is currently in the midst of a great transformation in how financial services are created, accessed and delivered. She was keen to be involved in shaping that future - particularly as blockchain technology extends beyond financial services An ardent advocate for diversity and inclusion, Vivien is the founder of W3W and co-founder of SatoshiWomen, both of which provide education, inspiration and connections to women interested in the digital assets space. She is also an advisory board member for Inspiring Girls and is actively working with universities and schools to pilot programs to raise awareness and provide access and education of Web3 to girls at a young age. Having been described by Tatler Asia as “a prime mover in cryptocurrency in Asia…on a mission to provide leadership and education,” she talks to Regulatory Ramblings’ host Ajay Shamdasani about her passion for diversity and inclusion in the fintech and Web3 space, and how education to help us get there – especially through the medium of e-games to reinforce the skills needed to function in the digital economy of the future where cryptocurrencies and e-tokens will be an important part of daily interactions and transactions. They discuss her transition from being a compliance professional to the tech world, her motivations for establishing W3W, the challenges she faced as an entrepreneur, the progress women have made in banking and finance in APAC, and how more can be done to draw women to tech careers at an early age. Their conversation concludes with Vivien sharing her thoughts more broadly on the extent to which Hong Kong’s legal and regulatory system is conducive to the needs of fintech, virtual asset and Web3 entrepreneurs.HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Episode 26 With Abhishek Bali, CEO and Co-Founder of ZIGRAMAs the CEO and Co-founder of ZIGRAM, Abhishek Bali has over 15 years of expertise in Anti Money Laundering (AML), Financial Crime Compliance (FCC), data assets and third-party risk. Abhishek has worked on engagements and initiatives across the world, collaborating with organizations like KPMG, BMR Advisors, Dun & Bradstreet, and Axis Bank. He leads various business initiatives and data solutions that leverage machine learning, artificial intelligence, data assets and deep technology applications to solve real-world problems in the field of risk. Products and technologies developed by him are in the space of AML, politically exposed persons (PEPs), know-your-customer (KYC)/due diligence, adverse media alerts, country watchlists, sanctions, cannabis businesses, high-risk individuals and entity monitoring. Abhishek is ACAMS certified and a co-chair of the India chapter of the Association of Certified Financial Crime Specialists (ACFCS).He talks to Regulatory Ramblings’ host Ajay Shamdasani about the state of AML and FCC in India, as well as the extent to which AI and machine learning can aid such endeavors, how India now has the largest concentration of AML and financial crime professionals in the world after the US, and what the drivers are of the country’s explosion of FinTech use and development, and regulatory oversight over the past decade. A point Abhishek emphasizes is that India has come a long way and it is now easier to do wholesale monitoring of people and transactions nationwide than ever before.They also discuss how, of the approximately 175,000 banking and financial institutions across the world, most large AML solutions and data providers only focus on servicing the top 100-500 firms, leaving a long tail of unserved or underserved institutions that urgently need integrated FinTech and RegTech services.Notwithstanding the perennial topics of AI and machine learning, Abhishek does not believe compliance professionals will be out of a job in the foreseeable future. While AML/FCC departments will increasingly require data science specialists for operational purposes, he emphasizes that such teams will continue to be led by those with on-the-ground financial crime experience and knowledge.The conversation concludes with a point about why many customers are increasingly put off by FinTech and RegTech vendors offering AI as part of their solutions.HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

As the founder of CFOAF, a financial services and business consulting firm specializing in industries ranging from construction to crypto, Byron Wolfe's greatest gift is in translating the complexities of business financial principles – with a focus on small businesses – into easily understood communication. It is a quality that has made him one of the most highly sought financial and business consultants. Byron is also the chief financial officer of an INC 5000 company, and the fractional CFO of various companies with annual revenues ranging from US$3-25 million.His certification in the crypto, NFT (Non-Fungible Tokens) and Metaverse space has led to many projects with DAOs (Decentralized Autonomous Organizations) and crypto companies, and he is regarded as an expert in crypto tax strategy. Yet, recalling his own challenges as an entrepreneur, Byron’s truest passion lies in helping small business owners expand their financial reach and success through various tools such as research and development tax credits, proactive tax plans, creative funding and high contact financial management.He talks to Regulatory Ramblings’ host Ajay Shamdasani about what originally put him on the entrepreneurial path, and how the Metaverse and virtual assets such as cryptocurrencies and NFTs are fundamentally altering the face and structure of business. They also discuss the impact of DAOs and the benefits of crypto tax strategies.HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

After twelve years of a rewarding career in the corporate world, Karena Belin became an entrepreneur. As she put it, 'out of passion and inspiration to foster the growth of the tech and innovation ecosystem,' especially right here in Hong Kong, which she and her family now call home after two decades in the territory.  She is also a dear friend of HKU – The University of Hong Kong, where she has been a guest lecturer on the topic of 'Equity Crowdfunding' in Asia’s first MOOC, "Introduction to Fintech" - the largest online fintech course on edX, attracting over 114,000 learners. Karena is the co-founder and CEO of WHub – a start-up ecosystem builder and the largest start-up platform in the city. Her group helps startups grow and enables stakeholders to connect with the innovative power of the local tech ecosystem. WHub is also an organizer of global conferences. Most notably, earlier this year, WHub was appointed as the organizer of Hong Kong FinTech Week – which resumes its physical format on October 30, 2023 – by the Hong Kong Government. She is also the co-founder, CFO, and RO of AngelHub, Hong Kong’s first and only investment platform for tech companies licensed by the SAR’s capital markets watchdog, the Securities and Futures Commission, for professional investors and growth tech companies scaling in Asia. She is a founding board member of the newly established Web3 association called Web3 Harbour. With a double diploma from the University of Mannheim and the MBA business school ESSEC in Paris, Karena worked for Procter & Gamble for 15 years in finance, sales, strategy, and M&A across Europe, North-East Asia, and Greater China. She has been deeply immersed in the Hong Kong start-up scene for the past decade as a member of the Start-up Committee of the Commerce and Economic Development Bureau (CEDB) of the HKSAR, as well as being on the Organizing Committee of the Innopreneur Awards of the Federation of Hong Kong Industries (FHKI), and the HKTDC Belt and Road & Greater Bay Area Committee. She is also an ambassador of StartupAsiaBerlin, an initiative of the German Senate in Berlin, and serves as vice president of TiE HK and a member of the Hyderabad FinTech Forum core team. Karena is also a '10 Best Female Entrepreneurs of the World by True Global Ventures and Women of Hope' Awardee. She has also volunteered at Hong Kong International School (HKIS) in several capacities. She talks to Regulatory Ramblings’ host Ajay Shamdasani about the early part of her life, growing up, and being educated in Germany and later in France for her MBA. They also discuss how she transitioned from a finance and management background into life as a technology entrepreneur and her motivations for founding WHub and AngelHub as incubators to serve Hong Kong, guide, and develop budding innovators. The conversation also delves into the logistical challenges of putting together a key global event such as Hong Kong FinTech Week, the obstacles she has faced as a businessperson and particularly as a woman in tech and the corporate world, as well as her view that few places in the world come close to Hong Kong in enabling entrepreneurs to realize their dreams. Their chat concludes with Karena’s views on why she resolutely believes Hong Kong’s rule of law and robust regulatory system make it more than well-suited to cope with the emerging fields of FinTech and virtual assets.Navigate using the chapter markers in your favorite podcast apps. HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Christian Hunt is the founder of Human Risk and has nearly three decades of experience in financial services, spanning investment banking, asset management, and time spent at a family office. He is also the author of the new book 'Humanizing Rules: Bringing Behavioral Science to Ethics and Compliance.' His unique perspective comes from having held senior roles as both a risk and compliance officer, as well as a regulator.While working for the Swiss banking giant UBS in London, he was a managing director & head of behavioral science. He was the global head of Compliance & Operational Risk at UBS Asset Management. On the other side of the fence, he was the chief operating officer at the UK's Prudential Regulation Authority.His current mission is to help organizations swiftly improve their ethics and compliance programs to achieve better business outcomes by putting people at the center of their internal rule-making processes. You can learn more about him at his website: www.human-risk.com.He talks to Regulatory Ramblings' host Ajay Shamdasani about how employees aren't necessarily interested in endless rounds of training to test for recognition of rules and regulations, though that was somehow a proxy for fostering a sound compliance culture – be it in the financial sector or the corporate world more broadly. They also discuss how weeding out bad actors won't fix environmental factors when 'systemic rot' has set into an organization and how one of the worst ways to make employees turn against their employers is to send the message that the former are not trusted.HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Hong Kong's new virtual asset regulatory regime went into effect on June 1. Much of the fanfare surrounding it stems from the notion that retail investors in the territory will soon be able to purchase cryptocurrencies and digital assets, writ large, from licensed exchanges. Clearly, the SAR is positioning itself to become a virtual asset hub, with the start of applications for licenses to run trading platforms and exchanges already underway. Trading of cryptocurrencies in the city has been restricted to institutional investors and other professionals since 2018, but Hong Kong's local regulations will allow retail trading as soon as the second half of 2023. Local officials have stated that the initiative to welcome crypto is backed by safeguards for investors. The move comes amidst a background of tough global regulatory headwinds for the sector.Our guests this episode are Hong Kong-based Vince Turcotte and his London-based colleague, Jonathan Dixon, from Eventus – a global provider of trade surveillance and market risk solutions for multiple asset classes such as equities, options, futures, foreign exchange, fixed income, and digital assets.They chat with Regulatory Ramblings host Ajay Shamdasani on why the territory's new virtual asset trading platform (VATP) rules are such an important milestone for retail access to digital assets in Asia - as evidenced by the Licensing Handbook for Virtual Asset Trading Platform Operators from the SAR's capital markets watchdog, the Securities and Futures Commission. In particular, the guests note that through its actions, the SFC is staking out a global leadership position on regulating virtual assets: because the SFC is the first and only regulator to require market surveillance. Also discussed are whether other international regulators follow the SFC’s lead, alongside the potential pitfalls that service providers, investors and others may face in complying with the city's VATP rules, and whether digital exchanges and other platform providers are starting from a position of strength and preparedness generally. Additionally, Turcotte and Dixon share their views on the most common VATP queries from their clients, as well as if more regulation might be needed as retail investors continue flocking to virtual assets. The conversation concludes with an outline of key steps local trading platform providers need to take – especially regarding licensing requirements.Related readings and bios: www.hkufintech.com/regulatoryramblingsHKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

A veteran entrepreneur and technology lawyer with over 15 years of experience specializing in cross-border transactions, data compliance, and regulatory matters more broadly, Jamilia Grier is the founder and chief executive officer of the firm training and consulting firm ByteBao. She also hosts the Barely Legal in Web3 podcast.She chats with Regulatory Ramblings host Ajay Shamdasani on how to best conceptualize the ever-growing topic of Web3 and what it means to be a lawyer in an age of swift and profound technological innovation. They also discuss the pervasiveness of technophobia in the legal profession – particularly amongst practitioners of earlier generations – as well as the implications of generative artificial intelligence (AI) platforms such as ChatGPT for the profession. They conclude with their conversation with the metaverse and what it means for contract terms, IP issues, transfers of digital property, and NFTs – as Jamilia tells us: it is all connected because the law truly is a seamless web.HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

EXTENDED PLAY WITH GUEST: DONALD DAY As Hong Kong implements the VATP (Virtual Asset Trading Platforms) licensing regime in June 1, 2023, find out what former SFC-Hongkong's digital assets expert and creator of the rulebook for Virtual Asset Fund Managers and Trading Platforms, Donal Day, has to say.  He also co-authored the regulatory framework, terms and conditions and guidelines for virtualassets. Donald, chief operating officer of fintech start-up firm VDX, and the former in-house cryptocurrency/digital asset expert at Hong Kong’s capital markets regulator, the Securities and Futures Commission (HKSFC), sits down to chat with Regulatory Ramblings host Ajay Shamdasani. They discuss Donald’s time as a regulator, the importance of broadening the policy discussion beyond just being about cryptocurrencies to envisaging a future where virtual assets are a key part of daily commerce, as well as the importance of digitization, and Hong Kong’s ideal position as a global fintech and digital asset hub, the HKSFC’s new virtual asset service provider regulatory regime and its implications for legal and compliance staff, and some of the aims of The Crypto Fraud and Asset Recovery Network (CFAAR)’s local chapter almost a year after its formation.HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Donald Day, chief operating officer of fintech start-up firm VDX, and the former in-house cryptocurrency/digital asset expert at Hong Kong’s capital markets regulator, the Securities and Futures Commission, sits down to chat with Regulatory Ramblings host Ajay Shamdasani. They discuss Donald’s time as a regulator, the importance of broadening the policy discussion beyond just being about cryptocurrencies to envisaging a future where virtual assets are a key part of daily commerce, as well as the importance of digitization, and Hong Kong’s ideal position as a global fintech and digital asset hub, the HKSFC’s new virtual asset service provider regulatory regime and its implications for legal and compliance staff, and some of the aims of CFAAR’s local chapter almost a year after its formation.Topic Takeaways| Chapter 1- Bitcoin was created to establish a payment system independent of central entities, but intermediaries are still needed for fiat-to-crypto exchanges.- Regulation is necessary for the involvement of institutional investors and professionals from traditional finance in the crypto industry.|  Chapter 2- Insurance companies and risk management tools are crucial for the growth and stability of the crypto industry.- Proper regulation is needed to facilitate institutional adoption and provide risk mitigation measures. |  Chapter 3- Blockchain technology has the potential to reduce mistakes in the medical field.- Regulations should be implemented to ensure responsible access and modification of medical records on the blockchain.|  Chapter 4- Singapore is seen as a frontrunner in marketing itself as a fintech and digital asset hub.- Hong Kong's stability and accountability make it attractive despite past regulatory criticisms.- Strong regulation is essential for sustainable growth in the digital asset market.|  Chapter 5- Digital assets have broader applications beyond cryptocurrencies.- Tokenizing real-world assets and providing liquidity can create a more accessible market.|  Chapter 6- Fintech encompasses more than just crypto and digital assets.- The focus should be on solving real problems and improving people's lives. | Chapter 7- The new regulatory requirements aim to enhance compliance and prevent money laundering in the crypto industry.- Existing platforms have a grace period to comply with the new licensing regime. |  Chapter 8- Experience in compliance, especially in areas like market surveillance, is invaluable in the digital asset industry.- Building a compliance team with experienced individuals helps engage with regulators and clients effectively.| Chapter 9- CFAAR aims to engage, enhance, and educate the industry and legal system on compliance for digital assets.- Legal professionals need to understand tools available for fraud prevention and detection in the digital asset space.|  Chapter 10- Blockchain and ledger records are helpful but require additional investigation for asset tracing and recovery.- Tracing digital assets involves understanding technical complications, but tools are available for legal and law enforcement agencies. | Chapter 11- Hong Kong's stable regulatory framework for digital assets is commendable and encourages growth in the industry. HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.