Connect with us

Fintech

Cashaa’s New Account Is a Savior for Crypto Businesses After the European Regulator Enforced New Laws in 2020

Cashaa's New Account Is a Savior for Crypto Businesses After the European Regulator Enforced New Laws in 2020
Vlad Poptamas

Published

on

 

London-based crypto banking startup Cashaa launched a “Crypto Business/Broker” account to ensure crypto businesses/brokers are compliant with the FCA’s new rules for anti-money laundering and counter-terrorist finance and Fifth Money Laundering Directive (5AMLD).

Cashaa’s mission is to help crypto businesses get access to banking who have always struggled with traditional banks. Finally, in 2019, it started its operations in partnership with an FCA regulated entity intending to become the go-to banking services provider for underbanked industries worldwide.

“We launched our business banking services in 2019, but onboarding crypto businesses was a huge challenge, mostly due to changing compliance rules, sometimes unclear KYC and AML policies of the business or sometimes just loose behavior of founders. The Fifth Money Laundering Directive (5AMLD) became compulsory for European states from 10th Jan 2020, resulting in the FCA to become the AML and CTF supervisor for crypto businesses. Based on my experience, the situation will get worse for many crypto companies out there who do not understand the implications. Our product is developed to adopt these new laws with reliable banking services to protect crypto entrepreneurs.” — Archit Aggarwal, CPO Cashaa

More than 1000 crypto companies have applied to Cashaa, mostly looking for a bank account and credit/debit card processing facility. Cashaa had turned down 80% of the applications because the businesses did not understand AML and CFT rules. Based on the experience of dealing with over a thousand crypto companies, Cashaa realized that most of the founders working in the blockchain or DLT space are are young, dynamic entrepreneurs, full of innovative ideas who mainly focus on engineering, but are lacking specialized compliance knowledge.

Cashaa’s “Crypto Business/Broker” account has coded policies and systems to mitigate the risk of the business being used for money laundering or terrorist financing. Cashaa has integrated the KYC system for individual and corporate entities within the account for due diligence of each sender/receiver when doing transactions. Three levels of the KYC system will do intrusive due diligence, known as enhanced due diligence when dealing with customers who may present a higher money laundering/terrorist finance risk, also including PEP (Politically Exposed Person) checks. Cashaa’s systems, together with its reliable banking partners, will be doing the ongoing monitoring of all the transactions happening to make sure they are consistent with the business’ knowledge of the customer and the customer’s business and risk profile.

“We have put our experience of dealing with hundreds of crypto businesses and extended our capabilities through technology to our customers to give them the freedom to innovate with minimum worrying about the new FCA rules or 5AMLD.” — Kumar Gaurav, CEO Cashaa

From 22nd January onwards, businesses are able to get a crypto broker account for Pound Sterling (GBP) and Euro (EUR). Great Britain and Lithuania IBAN (International Bank Account Number) accounts with a unique reference number will enable FPS (Faster Payments Service), CHAPS (Clearing House Automated Payment System), SEPA (Single Euro Payments Area) and SWIFT (Society for Worldwide Interbank Financial Telecommunication) payments, allowing 3rd party payments up to 200 Million GBP.

There is no monthly fee to make sure small innovative crypto companies can use the product. The KYC checks and ongoing transaction monitoring will be done automatically in the account, to make sure each transaction is following the European 5AMLD. To make sure only serious companies are applying for the account, a small application fee of 100,000 CAS will be required. Interested businesses can acquire CAS from Binance DEX.

 

SOURCE Cashaa

Fintech

Chinese fintech attracted investments of USD 962.2 million in 2H 2019

Vlad Poptamas

Published

on

 

Fintech companies in China attracted USD 962.2 million in investments from venture capital, private equity and M&A in 2H 2019, resulting in a total of USD 4,479 million in investments for the whole of 2019, according to KPMG’s Pulse of Fintech H2’19 bi-annual report on global fintech investment trends.

Fintech investment in China took a breather after a massive 2018, but the country’s fintech market continued to see substantial activity and Chinese companies still ranked among the largest fintech deals in Asia Pacific for the whole of 2019. China’s large technology giants continued to focus on growing their reach geographically, making investments or plays well outside of Greater China. Ant Financial, for example, submitted an application for a digital banking license in Singapore in late 2019, while Tencent made a number of significant investments in fintech companies in other regions throughout the year, including Ualá in Argentina.

Investors in China also began to turn their attention to up-and-coming areas of fintech. These include regtech, which has appeal among VC investors because of its ability to leverage artificial intelligence and machine learning to assess risk and identify fraud. China-based investors are also interested in fintech companies that use these technologies more broadly to improve the operations of banks and financial institutions, such as improving operational efficiencies, generate and analyse data, as well as support wealth management.

The third quarter of 2019 saw the People’s Bank of China unveiled a three-year plan to support the development of the fintech industry. Since then, there has already been a number of moves focused on implementation. For example, a fintech sandbox is in development, with testing currently being concluded in Beijing. It is expected that this plan will help fuel future investment in fintech, particularly in key areas like risk management, cybersecurity, big data, artificial intelligence, distributed databases and authentication.

Chris Wang, Partner, Head of Fintech, KPMG China, commented, “China’s central bank and other authority bodies are working to move fintech in the country to ‘2nd half’ as part of their three-year fintech development plan. We anticipate an increased regulation and guidance for the industry and an enhanced infrastructure to support fintech development. For example, sandbox mechanism is being designed and may soon roll out to test the concept of different fintech to make sure they comply with regulations and will achieve the desired results before they enter the market.”

The fintech market in Hong Kong saw some resilience in the fourth quarter of 2019, particularly on the back of Alibaba’s decision to do a secondary listing on the Hong Kong Stock Exchange, which raised USD 11.2 billion, making it the largest listing of the year globally.

Earlier in 2019, Hong Kong issued the first batch of eight digital banking licenses. ZhongAn was the first to launch a digital bank pilot, with others expected to follow suit in 2020. As the licensees continue to formulate their digital bank offerings, Hong Kong could see an upswing in investments in related areas, like KYC, regtech, digital onboarding and communications, and digital banking infrastructure. The issuance of digital banking licences has also spurred traditional banks to improve their own digital offerings and experience.

Avril Rae, Director, Head of Fintech, Hong Kong, KPMG China, said, “We’re starting to see ecosystems evolving with respect to digital banks. Partners are coming together to get digital banking licenses. Once they have their pilot projects underway, and they have proven their technology both internally and to the Hong Kong Monetary Authority, we’ll start to see them leveraging those partnerships more deeply – integrating banking services with other offerings like travel bookings or insurance to provide their customers with a seamless experience.”

 

SOURCE KPMG China

Continue Reading

Fintech

Chinese fintech attracted investments of USD 962.2 million in 2H 2019

Vlad Poptamas

Published

on

 

Fintech companies in China attracted USD 962.2 million in investments from venture capital, private equity and M&A in 2H 2019, resulting in a total of USD 4,479 million in investments for the whole of 2019, according to KPMG’s Pulse of Fintech H2’19 bi-annual report on global fintech investment trends.

Fintech investment in China took a breather after a massive 2018, but the country’s fintech market continued to see substantial activity and Chinese companies still ranked among the largest fintech deals in Asia Pacific for the whole of 2019. China’s large technology giants continued to focus on growing their reach geographically, making investments or plays well outside of Greater China. Ant Financial, for example, submitted an application for a digital banking license in Singapore in late 2019, while Tencent made a number of significant investments in fintech companies in other regions throughout the year, including Ualá in Argentina.

Investors in China also began to turn their attention to up-and-coming areas of fintech. These include regtech, which has appeal among VC investors because of its ability to leverage artificial intelligence and machine learning to assess risk and identify fraud. China-based investors are also interested in fintech companies that use these technologies more broadly to improve the operations of banks and financial institutions, such as improving operational efficiencies, generate and analyse data, as well as support wealth management.

The third quarter of 2019 saw the People’s Bank of China unveiled a three-year plan to support the development of the fintech industry. Since then, there has already been a number of moves focused on implementation. For example, a fintech sandbox is in development, with testing currently being concluded in Beijing. It is expected that this plan will help fuel future investment in fintech, particularly in key areas like risk management, cybersecurity, big data, artificial intelligence, distributed databases and authentication.

Chris Wang, Partner, Head of Fintech, KPMG China, commented, “China’s central bank and other authority bodies are working to move fintech in the country to ‘2nd half’ as part of their three-year fintech development plan. We anticipate an increased regulation and guidance for the industry and an enhanced infrastructure to support fintech development. For example, sandbox mechanism is being designed and may soon roll out to test the concept of different fintech to make sure they comply with regulations and will achieve the desired results before they enter the market.”

The fintech market in Hong Kong saw some resilience in the fourth quarter of 2019, particularly on the back of Alibaba’s decision to do a secondary listing on the Hong Kong Stock Exchange, which raised USD 11.2 billion, making it the largest listing of the year globally.

Earlier in 2019, Hong Kong issued the first batch of eight digital banking licenses. ZhongAn was the first to launch a digital bank pilot, with others expected to follow suit in 2020. As the licensees continue to formulate their digital bank offerings, Hong Kong could see an upswing in investments in related areas, like KYC, regtech, digital onboarding and communications, and digital banking infrastructure. The issuance of digital banking licences has also spurred traditional banks to improve their own digital offerings and experience.

Avril Rae, Director, Head of Fintech, Hong Kong, KPMG China, said, “We’re starting to see ecosystems evolving with respect to digital banks. Partners are coming together to get digital banking licenses. Once they have their pilot projects underway, and they have proven their technology both internally and to the Hong Kong Monetary Authority, we’ll start to see them leveraging those partnerships more deeply – integrating banking services with other offerings like travel bookings or insurance to provide their customers with a seamless experience.”

 

SOURCE KPMG China

Continue Reading

Fintech

CFP Board Center for Financial Planning Announces Best Paper Winners for 2020 Academic Research Colloquium

Vlad Poptamas

Published

on

 

The CFP Board Center for Financial Planning is pleased to announce the recipients of the 2020 Best Paper Awards that were presented last week in Arlington, Va., during the Center’s fourth annual Academic Research Colloquium for Financial Planning and Related Disciplines.

  • The TD Ameritrade Best Paper Award in Behavioral Finance – Sung Lee of Stern School of Business, New York University, for “Fintech Nudges: Overspending Messages and Personal Finance Management”
  • The Northwestern Mutual Best Paper Award in Insurance/Risk Management – Hossein Salehi, CFP® of California Lutheran University, and Charlene Kalenkoski, CFP® of Texas Tech University, for “The Relationship Between Ownership of Insurance Products and Retirement Satisfaction”
  • The Emerging Scholar Best Paper Award – Derek Tharp, CFP® of University of Southern Maine, for “Consumer Perceptions of Financial Advisory Titles and Implications for Title Regulation”
  • The Best Paper Award in Investments – Da Ke of University of South Carolina, for “Left Behind: Partisan Identity and Wealth Inequality”
  • The Best Paper Award in Household Finance – Nick PretnarAlan Montgomery, and Christopher Olivola of Tepper School of Business, Carnegie Mellon University, for “A Structural Model of Mental Accounting”

A full list of 2020 accepted papers is available here.

“We received many compelling paper submissions this year, but the committee selected those that they felt demonstrated the highest research standards,” said Charles R. Chaffin, Ed.D., director of Academic Initiatives, CFP Board Center for Financial Planning. “We congratulate the winners for their contributions to knowledge and innovation in the financial planning industry.”

The Best Paper series of awards recognizes authors from a variety of disciplines and sub-disciplines that relate to financial planning. The award carries a $2,500 cash prize for the author(s) of each winning paper.

The colloquium gathers the global academic community to showcase rigorous and relevant research within financial planning and related disciplines that directly or indirectly relates to the global financial planning practice and the body of knowledge. The CFP Board Center for Financial Planning hosts the colloquium in collaboration with FP Canada and the Financial Planning Standards Board Ltd., owner of the international CERTIFIED FINANCIAL PLANNER certification program outside the United States.

The colloquium is made possible with support from the Center’s Lead Founding Sponsor, TD Ameritrade Institutional, and Founding Sponsors Northwestern Mutual, Envestnet and Charles Schwab Foundation, in partnership with Schwab Advisor Services.

 

SOURCE Certified Financial Planner Board of Standards, Inc.

Continue Reading

Trending

Thefintechbuzz is part of PICANTE Media and Events, a leading media and boutique event organizer in the European Union with a monthly reach of +50,000 readers. The official company (PROSHIRT SRL), has been listed for 4 years in a row among the top 3 Advertising and market research agencies in the local Top Business Romania Microcompanies based on the Financial Reports. Thefintechbuzz digests / hand picks the latest news about the fintech industry and serves them to you daily.

Contact us: sales@picante.today

Editorial / PR Submissions

© Thefintechbuzz.com 2019 - 2020 - part of PICANTE Media. All rights reserved. Registered in Romania under Proshirt SRL, Company number: 2134306, EU VAT ID: RO21343605. Office address: Blvd. 1 Decembrie 1918 nr.5, Targu Mures, Romania