Finance Working Group

Purpose

The Working Group is set up to leverage member expertise and knowledge of DLT-based finance issues into policy recommendations. The overall community active within the WG seeks to become a leading voice across the blockchain and DLT space and help form solid and welcomed levels of influence on prospective legislation.

Objectives for 2020

The WG has selected three objectives around which it will carry out its annual work. The common goal of the objectives is to form valuable recommendations to policymakers and best-in-class content to members.

● Contribute to the creation of a compliant and harmonised framework based on clear token and stablecoins classifications, specifically on the issuance of security, utility and payment tokens, and for post-trade, post-market activities for digital assets custody services.
● Achieve and enhance awareness of requirements for: AML; Licensing for crypto exchanges, wallet providers and similar entities; Investment funds/asset management services.
● Perform the initial market analysis of the Decentralized Finance (DeFi) movement, its assumptions, related opportunities and risks, legal frameworks and its growth etc.

Outputs for 2020

The Working Group engages in a number of activities aimed at achieving the aforementioned objectives. Among others, the WG will focus on: drafting a paper on risk analysis of how post settlement risk aspect can be compared between existing infrastructure and between DLT infrastructures; publishing a digital custody paper, providing a common answer to a number of consultations (e.g. Crypto Assets, New Digital Finance Strategy for Europe, FinTech Action Plan 2020).

Subgroups

The Group has been divided into three Sub-Groups:

● The first Sub-group focuses on:
- Issuance of security tokens / crowdfunding
- Token classification
- Post trade, post market, custodian on digital asset
- Stablecoins
Co-chairs: Arnab Naskar and Marianna Belotti

● The second Sub-group focuses on:
- AML
- License requirements for crypto exchanges, wallet providers and similar entities
- Investment funds/asset management
Co-chairs: Carolin Hartmann and Thomas Campione

● The third Sub-group focuses on Decentralized Finance
- Research the threats and opportunities of Decentralized Finance
- Review the current regulatory hurdles for adoption
- Analyse the industry players and prepare INATBA members for how to use the applications of Decentralized Finance
Co-chairs: Jacek Czarnecki and Jan Klesla

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).

Co-chairs

Arnab Naskar

Linkedin

Jacek Czarnecki

Linkedin