Regtech Solutions in the financial world

Regtech Solutions in the financial world

The regulatory technology and the continuous innovation have made the delivery of specific regulatory mandates to be adhering by crypto exchanges and fintech companies. The easy way to integrate, manage and secure a reliable risk solution today with cost-effective strategy is catching up on the financial world.

Importance of Regtech

The emphasis on technology and regulation have become synonymous, as we head into an era of digitization completely, there needs to be a framework of how the regulations in the digital space are useful and not taking away the freedom of trading online and their presence across different parts of the world. In the dynamic world of financial technology, check this out for driving more efficient manner of achieving the goal of functioning in digital space with a lot of security and high regulatory norms automatically followed so that no additional efforts or reports are required to generate, more or less an automated risk tool.

More about Regtech

  • the extension of regulatory practices should be the goal and not the disruptive practice of eroding the traditional system of operating in the financial world
  • regulation of highly acquired data should be used for real-time demonstration, using the intricacies involved in mapping the logic for the global regtech adherence
  • this will streamline the entire process of customer relation, their identity protection and fulfilling the due diligence for banking and other financial sectors
  • using the latest artificial intelligence and machine learning abilities, there seems to be a customized approach for every client in the digital space to fit into the regtech and fintech
  • startup companies are leveraging on the benefits of this disruptive technology to save time and efficiently manage huge data from the cloud platform
  • there is a definite change in the response time and the dramatic improvements in terms of the changes in regulatory form are helping in the cost-effectiveness and the accuracy of data involved, banks and other financial services are hugely benefitting from the crux of the underlying technological innovation

There was a time when following the regulatory requirements was considered to be a time-consuming activity, that was worsened by the financial crisis, hence the relevance of providing more information about the risks and the measures to prevent have been elaborately communicated to the stakeholders and the customers. There is no specific regtech solution; each corporation will have their own risk mitigation tool customized.

 

 

Here is why Forex and allied trading on online media is a hit with the traders today

Here is why Forex and allied trading on online media is a hit with the traders today

It all started in 2008:

The financial meltdown in the global economy was a tough call for many. But like they say there is always a silver lining in every cloud, the 2008 market crash taught people that there are so many other ways to think money. Online trading is one such field that picked up its momentum during the global recession.

The reasons why people preferred to trade online during the toughest time in this century was that the risk was calculated and it also meant that freelancing was possible. The rise in the percentage of traders during the terrible years was in my estimate because people were actually losing their jobs.

As more and more people dropped out of the active workforce, they were looking out for another medium of employment and online trading fit the bill exactly.

Online trading has been helping people gain back their self-esteem:

It is not easy to lose a job; a means of livelihood and in a climate when it becomes hopeless, it can lead to suicidal tendencies for someone who has a family to support. I can very proudly affirm this and based on my detailed research that online trading has given hope to millions of workers in those tough days when they lost their jobs to attrition.

If it was not for trading, they would have committed mass suicide or worse, the crime rate in the world would have reached a new high because you know “survival”!

Trading has been popular since:

Today, if you will see the ratio of people who prefer to trade online in derivatives such as commodities, foreign exchange, stocks, and shares, you will realize that they are very happy with whatever extra income they manage to make along with the salary that they receive at their day jobs.

Pairing trading is easy with your existing jobs:

Online markets never shut down. This is the reason that there is a great scope for people who want to earn supplementary income to jump in on to the bandwagon. The trader can trade at his own will and convenience. If he thinks that he may not be able to be up, he can even switch on the autopilot mode where the robot will do the trading on his behalf. Of course, the risk level can be set by him!

Trading has been a saving grace for millions of people who have tried and testified that there has nothing ever been so flexible and comfortable as being able to trade online from the comfort of one’ home and still be able to make a bonus income!

Basics Understanding of ‘Security’

A security is an exchangeable, debatable money related instrument that upholds some sort of financial esteem. It speaks to a proprietorship position in a traded on an open market organization (by means of stock), a leaser association with an administrative body or a company (spoke to by owning that substance’s security), or rights to possession as designated by an alternative.

A brief analysis

Securities are extensively grouped into two types:

  • Equities
  • Debts

A value security speaks to proprietorship intrigue held by investors in an element (an organization, association or trust), acknowledged as shares of the capital stock, which incorporates offers of both normal and favored stock. Holders of value securities are commonly not qualified for consistent installments (however value securities frequently do pay out profits), yet they can benefit from capital additions when they offer the securities (expecting they’ve expanded in esteem, normally). Value securities do qualify the holder for some control of the organization on a master rata premise, by means of voting rights. In times of insolvency, they share just in remaining interest after meeting all the commitments that ought to be paid to the creditors.

An obligation security speaks to cash that is obtained and should be reimbursed, with conditions that state the measure of the credit, financing cost and maturity or date of renewal. Obligation securities, which incorporate corporate and government securities, certificates of deposits and collateral security (for example, CMOs and CDOs), by and large, qualifies their holder for the standard installment of interest and reimbursement of principal (paying little mind to the guarantor’s performance), alongside some other stipulated legally binding rights (which excludes voting rights). They are normally issued for a settled term, toward the finish of which they can be recovered by the issuer. Obligation securities can be anchored (supported by guarantee) or not secured, and, if it is not secured, might be authoritatively organized over other a non-secured, a secondary obligation on account of an insolvency.

Composite securities, just as the name recommends, consolidate a portion of the attributes of both debt and value securities. Cases of composite securities incorporate value warrants (choices issued by the organization itself that give investors the privilege to buy stock inside a specific time period and at a particular value), convertible securities (securities that can be changed over into shares of basic stock in the issuing organization) and inclination shares (organization stocks whose installments of premium, profits or different returns of capital can be organized over those of different investors).

The Journey From Obscure to Distinct

Bitcoin has achieved its present popularity from a total obscure stage. Presently bitcoin is at $6000 market cap which was $600 a few months back. Some people have the clear idea on how to harness all the potential aspects of bitcoin after extensively learning the underlying technology. It is one of the valuable cryptocurrency of the world.

These currencies are created and held electronically and some leading banks and companies see immense potential in them to change the financial market. bitcoin is already used as a currency for online trade. It is gaining its popularity as a currency in e-commerce but is still in the stage of infancy when banks acceptance question comes.

The major advantage of bitcoins is in terms of payment as no one can steal the payment as it is a transparent network. The user has one private and one public to lock and unlock the transaction.

During the economic crisis of 2008, some government was forced to print some extra currency notes to meet the national debts. This leads to the decrease in currency value. But in the case of bitcoin, the currency generation is restricted to 21million coins which means coins cannot be generated beyond this so there is no question of inflation for bitcoin. However, this may have a positive and negative effect as well.

Most of the transactions by the banks ask for fees. Especially if you are sending money beyond the borders it has to go through a number of formalities this in turn results in transaction fees. The peer to peer technology, on the other hand, makes this elaborate process cheaper and faster. Here the buyer and seller can deal directly with the decentralized technology discards intervention of any intermediates.

A few weeks back 40 of the world’s largest bank conducted a test on cloud-based technology to understand the blockchain technology and how the smart contracts can be used for banks. As bitcoin is decentralized and there are no chances of failure of the central point, that can disturb the trade. The decentralization also means the government cannot take it away which means no central authority has control over it.

Presently bitcoin is facing the problem of block size limitations; however, the scientist from Bitcoin foundation has confirmed that there will be a 40% rise in the size of the blocks in every two years until 2036. Before the organizations back up this technology the problem should get solved.

Have you heard about Ethereum?

Have you heard about Ethereum?

Now that all the hubbub about bitcoin has died down and the king of cryptocurrencies is vacillating around a respectable $5000, the focus has turned to another cryptocurrency called Ethereum.

What is Ethereum?

Ethereum is a blockchain technology that creates a cryptocurrency called ether which functions like bitcoin and can be used for transactions. Like bitcoin, the blockchain is decentralized and does not require any banks or governing bodies’ validation for the transactions.

This cryptocurrency depends on smart contracts and there is no place for any third party here. So basically, what happens is that a code is created and uploaded to the blockchain. Whenever the conditions on the contract are met a trade is executed and it is stored in the public ledger granting access to everybody. This serves three functions – it prevents duplication of records, altering records and makes a transaction completely hack resistant. What makes this technology even more attractive is the lack of middlemen which not only cuts corruption but also saves money.

Besides just creating ether this ledger technology can be used in various fields to build new programs.

Created by Vitalik Buterin in 2013, Ethereum can be the game changer in the Internet of Things programs in the not so distant future. Its ability to be more than just a cryptocurrency is what has got the world excited and several fortune 500 companies are investing in it.

Cryptocurrency and the market

Though Ethereum is promising people have not stopped focusing on bitcoin and other cryptocurrencies. The cryptocurrency market in fact never sleeps and hence those trading in them are always on tenterhooks as they are not aware of what fate awaits them each morning. The market is highly volatile but very lucrative and that is why people are drawn to it.

Automated trading Robot like the Ethereum Code has become very popular among cryptocurrency lovers. These robots can stay awake all the time and monitor the market when the owners can sleep in peace each night. They are quick and more efficient than humans and will not be influenced by emotions. They work on preprogrammed algorithms that can execute trades and with the stop-loss order in place, the reigns of the trade remain in your hands at all times.

While the market is huge and there is an innumerable number of trading bots around that are free or charge a fixed rate, there is an equal number of scams around that you must be wary of.  You must do your research before you invest in any trading bot.

 

 

 

Casper: the new buddy of Ethereum

Casper: the new buddy of Ethereum

The regular user of the cryptocurrency must have come across the question of long-term scalability which is a major issue that crypto world is facing today. The network congestion that happened in the Ethereum network recently has heated up the question in a big way.

Casper is the potential up gradation of Ethereum network; it is the incremented implementation of proof of work consensus system. Casper is in the alpha testing stage to get implemented in the Ethereum network. Casper has the ambition to provide Ethereum platform with scalability and security. Once Casper gets implemented into the Ethereum network its consensus will shift from proof of work to proof of stake.

The test work on the Friendly Fidelity Gadget, Casper is running since 2014. The test model of Casper is a hybrid of POW and POS consensus. The final model that is going to be implemented is an overlay of POS on POW consensus; it is to give an added layer of protection to the Ethereum network. This design of Casper will replace miners with “validators”.  The function of validators will be basically same as miners but it has to pass through the staking system of validator fund. In this process, the validators will have to stake their own ETH as collateral to act honestly in the network.

Casper will have a profound advantage for the Ethereum network. With its implementation, the scalability of the network will largely increase for the long term. The model will lower the energy consumption required to run the network. High energy required for running these Cryptocurrencies like Bitcoin is a major area of concern for the people in the crypto world and people out of it as well.

Casper is also focusing on sharding of Ethereum database, sharding means to segregate large database into small and more manageable parts. This will lower the processing time for the information. Casper will eliminate miners from the network so the problems that the miners are facing in the network will also be eliminated. Casper is the hard fork up gradation of Ethereum.

The developers are hoping with the release of Casper Ethereum network will have a blockbuster change. The change will be for a better Ethereum network than what the users are experiencing at present.

The developers are in the hope that the whole new perspective of Ethereum will attract many new users to the network. Click here to find out more about Casper.

 

 

The 3 Amazing Application Of The Blockchain

If our memory is intact then, the last time when we were so amazed was when the Internet was introduced, where the world seemed a much smaller place! Such an amazing situation is what we are experiencing today with the introduction of the Blockchain technology, whose power, just as the internet is limitless! To understand better this proclamation, these 3 amazing applications of the Blockchain would be the best!

  • The Cryptocurrencies

If not for the cryptocurrencies, especially the Bitcoins, the world wouldn’t have known about the power of the Blockchain technology! These digital coins are developed, accessed, and transacted using the concept of coding and hence, the name! If you are asking, what is so special about these then, understand, these coins are not mere products of the technology but, such powerful products, which do not need any middlemen to operate, or in other words, decentralized! With this advantage, also comes the further merits, such as the cost-efficiency, time-efficiency, security and so on, making them the ideal futuristic currency of the world!

So, if you are eager to prepare yourself for this ideal future world of the cryptocurrencies then, do start investing in the cryptocurrencies with the help of reliable means like the Crypto Code! This Crypto Code is a crypto robot that can assure you the profitable cryptocurrency investment solution, any day! If you are more interested, read more about Crypto Code to know more!

 

  • Smart Contracts

With the introduction of the Ethereum project, this application of the Blockchain gained more publicity! To put it in simple words, the smart contracts are automated contracts, which can stick to the terms of the contract very strictly, without the intervention of the humans! Therefore, there would be no misuse of the terms or incomplete projects, thus, assuring perfection, wherever they are incorporated! Especially the smart contracts is a boon to any business, as the automation would not only ensure the completion of the work on time but, also, cost-efficiency and time-efficiency, appreciably!

 

  • Distributed cloud storage

Not only the business, even the common men make use of the cloud storage facility due to the improved accessibility it offers! But, still, the problem of hacking prevails, for which a possible solution could be obtained using the Blockchain technology! This technology introduces a decentralized peer-to-peer cloud storage solution, where the protection of the contents are doubled with the concept of encryption, both on the nodes and, as well as during the transmission! Or in simple words, the distributed cloud storage is a concept that is envisioned by the Blockchain technology, out and out!

 

Understanding the Risk and Opportunities of Cryptocurrency

With a new asset class as Cryptocurrency which has allowed users to transfer money equivalent in terms of digital currency codes which are embedded with high end blockchain technology, enabling one to transfer the coin to another using a public ledger which records all the transactions, in form of codes and encrypted codes increasing the number of cryptocurrencies outnumbering to more than 1000 which are available in the digital wallets, which are not alike but the purpose of trading them are similar.

Regulatory aspects

  • Regulating the movement of cryptocurrencies are extremely challenging as the entire ecosystem are designed to function without any central reporting authority or entity in charge of, hence it is just a consensus among the miners
  • the SEC and other regulatory bodies working to bring around an overall control over the new class of assets, however, the roadmap to monitor them like traditional currencies seems to be a task at hand
  • price fluctuations in the digital currency space can impact the value of the investments, made, the software platforms like the Bitcoin Loophole which require controls and regulation from the regulatory authorities and which could increase the risk of investing in such volatile markets
  • the ICO’s are been highly monitored and Sec is actively involved in making the companies follow the standard securities issuing process, detecting frauds which are high considering the fluid markets, which is also a step ahead to regulate cryptocurrencies
  • the exposure of the investors to cryptocurrencies are at an all-time high and there are traditional products being offered in exchange of the digital currencies which are high on the alert radar by regulatory bodies, the future of which is still very vague

The operational issues surrounding the digital wallets are few nagging issues which have to be faced by the traders/investors more cautiously as an incorrect account transfer would mean that there is no way to get the coins back, keeping the coins in private keys is another suitable options for traders who actively trade in the crypto markets, so that they do not lose the opportunity of price fluctuations for the need of coins to execute the trades, operational risk is inherent in any form of trading making this form of crypto trading more prone to be hacked and lost in the digital space of no return. Utilizing the coins and trade effectively in the exchanges of crypto are subject to proper evaluation by the investor and making a profitable income solution.

 

 

 

 

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Tips To Manage Your Finances For An Early Retirement

Have you ever wondered what an average individual’s life of the majority of the people revolves around five basic stages of life starting from birth, school education, university education, work life, and then finally retirement?

So, the question arises as to why do we work? Is it a safe bet that we think will lead to a prosperous life? Or is it because we really want to make something out of selves? This article is definitely not for those of you believed in the second option but it is a definite read if the first option has crossed your mind even for the slightest duration.

Many of us work so that we can provide for our family and retire happily. Hence, if retirement is your end goal, then why is that you think working and sloughing for about 75% of your life is the answer to it? Have you ever thought about an early retirement? The thought might be scary and pretty risky. However, it is not an impossible task to achieve.

Here are some tips that can help you plan an early retirement.

  1. Create a plan similar to a very extensive roadmap that clearly depicts the steps you intend to take to build up your financial security.
  2. Change your lifestyle. You cannot achieve a successful financially stable life if you spend. Rather it is achieved by controlling your expenses. Cut down the extras and go in only for the essentials.
  3. Invest in some quality financial education and risk management. This will help you in the long run. Rather than resorting to advertisements and peer groups, professional advice will help you any day.
  4. Make wise investments and be responsible for all your actions.
  5. Always be committed to your goal and never lose track in the days to come. You should be counting days to your retirement and not years.
  6. Always lock up your money in investments that are difficult to touch. This is a good way to treat itchy hands.
  7. Most importantly, do not procrastinate. Start your plan of action today and think that tomorrow may never come.
  8. Lastly, never forget that you have a life. For example, do not forget about your family or health while you are busy stowing away cash.

Hence, the goal that you should be looking to achieve is to not utilize the maximum time available in hand but to make use of the time that is available in the best and shortest way possible. If you do not plan your life, you will be living it the way someone else has planned it for you. It is all up to you.