Regtech is earning applauds all around the world, including the Asia Pacific region. While most regtech firms are based in the U.S. and Europe, they are spreading their wings to reach Asia, Hong Kong, Japan, and Singapore.
SINGAPORE
Singapore, being the leading Regtech space in Asia, has to deal with different regulatory regimes, each with a unique set of rules. However, a few years ago, awareness in the city kickstarted with a countrywide digitalization push through Smart Nation and Smart Financial Center Initiatives.
At present, Singapore hosts regtech solutions to make compliance efficient and affordable. In terms of e-KYC, Singapore has turned out to be an innovator with the MyInfo initiative that allows citizens to authorize third-party access to their data. Since then, several measures have been taken to boost regtech development.
The Singapore Fintech Association, in May 2019, launched a regtech sub-committee to better communicate within the regtech ecosystem. That same month, APAC regtech network was also introduced to maximize cross-border collaboration on regtech education across APAC.
HONG KONG
With the rising number of benefits, Regtech has wholly been embraced by SFC (Securities & Futures Commission) and HKMA (Hong Kong Monetary Authority). The introduction of sandboxes is a clear example of it. Regulatory sandboxes are launched by SFC for crypto exchanges in the Asian Financial Hub.
Compliance professionals will be required to adapt rapidly emerging technologies for transactions, AML, and KYC. These solutions aim at tackling any risks arising from the increasing use of technology, cyber, and data security.
In Hong Kong, regtech development is aimed at helping regulators scale their products and customers who demand transparency and user-friendliness. Facilitating regtech could help in the promotion of strengthened compliance and reducing the expenses.
KOREA
The association of Binance with Coinfirm has been a definite push aimed at ensuring secure trade to customers and compliance within the FATF’s guidelines.
With Binance’s objective of delivering the best user experience while attaining increased AML and security standards, this tie-up marks a step forward towards establishing their leadership in the market.
The road ahead!
The road ahead is no longer straightforward. Instead, there is a need for the FI’s to explore new technologies that focus on a bigger picture. Regtech will continuously evolve as financial firms struggle to stay compliant with existing regulations. Understanding how regtech will change your business now and in the future will be of extreme importance in the coming year.
