bitcoin, blockchain and the fintech revolution...bitcoin, blockchain and the fintech revolution...
TRANSCRIPT
Blockchain for Fintech and beyond: A Brave New World
Mark Adair Senior Associate, Technology Mason Hayes & Curran
4
Blockchain’s distributed
consensus model is
the most important
invention since the internet
Marc Andreessen
12
Mark Adair Senior Associate Mason Hayes & Curran t: +353 1 614 2345 e: [email protected]
@markadairlaywer
Fintech: The Regulatory Landscape
Rowena Fitzgerald Partner, Financial Services Mason Hayes & Curran
Key Areas of Regulation
• Payment Services Directive
• Electronic Money Directive
• Markets In Financial Instruments Directive (Investment
Services)
• Crowdfunding
14
Role of Central Bank
• Competent authority for regulated financial
services providers
• Gatekeeper and Consumer Protection
• Challenge-to regulate or not to regulate
15
Payment Services Directive (PSD I)
• Movement and processing of payments
• 7 types of payment services
• Placing and withdrawing money on a payment account, execution
payment transactions, direct debits, money remittance
• Exemptions
Limited Network- Store Gift Cards
Agency
16
PSD II
• PSD 2- by 13 January 2018
• Further types of “payment services”
Payment initiation services
Account information
• Bill payment services- money remittance
• Exemptions Narrowed
17
E-Money Directive- EMD II
Electronic Money
• Digital form of cash
• Value stored on a technical device such as a chip card a computer
memory
Exemptions
• Limited Network (i.e. shop gift card)
• Telecoms
18
MiFID
• Regulation of investment firms
• Investment services linked to financial instruments (shares, bonds, debt
securities, derivatives, funds)
The reception and transmission of orders
Execution of orders
Portfolio management
Investment advice
• Online trading platforms
• MiFID II – January 2018- (algorithmic trading- Blockchain)
19
Crowdfunding 1
• Raising of money – Online platform
Business projects
Personal loans
• Market-based finance SMEs
• Investment portfolio
• Models
Rewards and Donations- Kickstarter
Lending
Equity
20
Crowdfunding 2
• Lending
Who are you lending to?
B2B lending -not regulated
Lending to natural persons - regulated
• Credit Intermediary
Assisting consumers
21
Crowdfunding 3
• Equity
• Investment in return for share in profit
Investment services- MiFID
Public offers- Prospectus Directive
• Lending and Equity Model
Payment Services
Money Remittance
Central Bank Act, 1997 (as amended) – Money Transmission
22
Bitcoin
• Concerns - money laundering and financing of terrorism
• Anonymity
• Bitcoin not e-money- virtual currency currently outside scope
of regulation
• 4th Anti-Money Laundering Directive- 2017
crypto currency exchange platforms
wallet providers
23
Key Points
• Not always regulated
• “Regtech”- offering solutions to already regulated entities
fraud detection
regulatory reporting
• Consider business model and services
24
25
Rowena Fitzgerald
Partner Mason Hayes & Curran t: +353 1 614 5891 e: [email protected]
Mark Adair Senior Associate Mason Hayes & Curran t: +353 1 614 2345 e: [email protected]