Purpose
The Finance WG strives to gather all relevant stakeholders, among which includes not only entities that are active in utilizing blockchain and other distributed ledger technologies in the financial sector, but also those impacted
by or interested in such developments. Engagement and dialogue with key policy and regulatory decision makers is an important component of this, helping to advance the implementation of blockchain use cases
(including digital assets / crypto assets) in the financial industry as well as identifiying and addressing deficiencies in the technology and or the relevant regulation.
We look to identify obstacles for pursuing and utilizing blockchain technology (including digital assets) in the financial sector;
and define areas in which an industry wide approach to standards can enable the increased utilization of distributed ledger technologies. The Working Group actively supports and follows members’ efforts in implementing blockchain- based solutions across in the financial sector;
Furthermore, we strive to achieve international standards and harmonisation of the Blockchain terminology used in relation to the financial sector.
We share knowledge and conduct informational and educational activities concerning blockchain and DLT in the financial market.
and look to meet on a regular basis, thus ensuring the proper exchange of information within the working group.
Concrete purpose
The Working Group would like to contribute to a meaningful and sustainable blockchain and DLT development in the financial market and globally, by sharing knowledge, conducting research, and integrating relevant stakeholders into discussions.
Supporters propose the following action items for the Working Group:
Short-term (until November 2019):
→ Analyse the legal framework for blockchain and DLT applications in the financial market, focused on payments and capital markets, and in particular aimed at identifying
(i) regulatory gaps and
(ii) legal obstacles
o Outcome: Working Group’s report to be presented during Malaga conference in powerpoint (visual) format and a whitepaper as a public document
→ Identify entities within the INATBA members that could fall under the scope of the activities of the Finance WG and invite them to take part in the Working Group
o Outcome: all relevant stakeholders invited to the Working Group
→ Engage in the dialogue with the EU institutions and European supervisory bodies (as well as international bodies, if possible) relating to the ongoing initiatives that may have influence on blockchain and DLT applications in the financial market
o Outcome: meetings of the Working Group (not representing individual stakeholders) with the relevant EU institutions with a goal to share the expertise and provide opinions (e.g., respond to the Commission’s DG Connect as they undertake a cost benefit analysis of crypto assets)
→ Create a set of case studies
o Outcome: internal discussion on possible blockchain and DLT applications in finance and their consequences (e.g. a WG workshop at one of INATBA meetings)
→ Perform the initial market analysis of the Decentralized Finance (DeFi) movement, it’s assumptions, related opportunities and risks, legal frameworks, it’s growth etc.
o Outcome: internal Working Group’s report on Decentralized Finance to be presented to INATBA and start being prepared for public release Mid-term (until June 2020): See above. Proposed short term actions
→ Analyse the legal framework for blockchain and DLT applications in the financial market, focused on payments and capital markets, and In particular aimed at identifying
(i) regulatory gaps and
(ii) legal obstacles
o Outcome: Working Group’s report to be presented to the Board of INATBA for consideration as a public document
→ Perform research on the chosen topics, such as:
O AML/CTF and blockchain and DLT: opportunities and risks
O Use of blockchain and DLT in the financial market infrastructure
O Digital asset classification (“ISO” approach)
O Terminology harmonisation
O Legal and technological frameworks for tokenization
O Outcome: thematic reports for internal / external use
→ Organize meetings and workshops with leading blockchain and DLT projects in the financial sector
O Outcome: 3 meetings for Working Group members
Define purpose related to stakeholder
→ Sharing knowledge internally and externally
→ Networking
→ Monitoring developments
→ Looking for synergies
→ Raising problematic issues
→ Achieving a standardised terminology and framework
Why is it essential?
Finance is undoubtedly a sector with strong potential for blockchain and DLT application and use cases. This includes both solutions developed by large and small financial institutions as well as start-ups and new projects. Moreover, this area is also of high interest for public sector entities and authorities at both the national and international level (EU and non-EU). The supporters are, thus, of the opinion that INATBA should establish a working group focused on blockchain and DLT in the context of financial services.
