FINANCIAL SERVICES
But many countries still don ’ t allow crypto transactions , thus preventing it from comfortably occupying a mainstream position , and the regulation of DeFi will almost certainly tighten up over the coming decade .
Jurijs Borovojs , CTO of
Transact365 , says the crypto landscape has remained largely unchanged by external events , making it a popular option for the cross-border payments space . “ Crypto ’ s flexibility means it is not as heavily impacted by country or regionbased economic landscapes . Although cryptocurrencies can undulate in value , they are more robust to exterior changes .”
He believes that global economic instability has contributed to the popularity of digital currencies in the international payments space because they are easily transferable assets that fly above the fiat regulatory requirements of individual countries .
“ While financial problems persist in Europe , merchants operating in and from fast-growth ecommerce landscapes can take advantage , using global payment gateways to facilitate the scale-up of their businesses . With an increase in ecommerce merchants enabling alternative finance payments , alt-fi sectors may gain more customers who wish to purchase online without using assets temporarily stored and secured in mainstream bank accounts .”
Cross border payments in China Each country handles its cross-border transactions differently , and China – the world ’ s biggest supplier of goods and services – has implemented its own regulatory requirements that benefit trade while also taking AML and security measures into account .
David Messenger is the CEO of leading China-born fintech
LianLian Group . The company ’ s purpose is to connect merchants globally through two-way channels whereby companies both within and outside China can have a streamlined transaction network . Messenger tells us : “ When you look at fintechs in China , really , there are two areas of regulation . One is the People ’ s Bank of China ( PBoC ) and the financial regulations ; the other is the Cyber Administration Authority of China , which is the data security , data privacy regulations . In China , what often happens in new areas is that the regulations are left flexible to let a market and solutions develop . Then , once the position is clear , the regulator brings in regulations that are broadly in line with the same objectives that regulators have all over the world .”
The process is , he says , a method that ultimately works best for the business climate and the customer because it closes areas of vulnerability , making the environment safer for business by providing greater stability in the financial system , data security and data privacy .
76 January 2023