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Digital assets vary. They can be a virtual currency that has no analog in the real world, and exists only on the blockchain used as a substitute for money. For this reason, virtual currencies are generally considered to be secure and offering a high degree of privacy. A recent decision from a US federal court of appeals, however, may cast a different light on this generally held view. USA v. Gratkowski In United States v.…

In a surprising turn of events, the New York State Department of Financial Services (“DFS”) announced on December 28 significant changes to its cybersecurity regulation in response to industry concerns that the agency’s original proposal was too prescriptive, and did not allow enough time for compliance.In September of 2016, DFS had proposed stringent cybersecurity requirements aimed at protecting “Nonpublic Information” within the custody or control of banks, insurers, and other financial institutions (“Covered Entities”) from…

The concept of AI is generally attributed to computer scientist John McCarthy, back in the ’50ies. It is extremely broad and complex, yet it may be summarised (at the risk of oversimplification) as machine intelligence designed to perform a defined set of actions and to learn from experience. AI is nowadays part of our lives, often without us noticing. According to Ray Kurzweil’s fascinating theory “The Singularity is Near”, the time when advanced AI will really…

Part of the Ghosts in the Machine b:INFORM SeriesArtificial Intelligence – Regulatory RiskIn this article forming part of our b:INFORM Ghosts in the Machine Series , we analyse the survey findings relating to regulatory risks arising from the use of Artificial Intelligence (“AI”) in financial markets and institutions. Click here for our article analysing the survey findings relating to legal risks arising from the use of Artificial Intelligence. And you are welcome to visit our Ghosts in…

Part of the Ghosts in the Machine b:INFORM SeriesArtificial Intelligence – Legal RiskIn this article forming part of our b:INFORM Ghosts in the Machine Series, we analyse the survey findings relating to legal risks arising from the use of Artificial Intelligence (“AI”) in financial markets and institutions. Click here for our article analysing the survey findings relating to regulatory risks arising from the use of AI. And you are welcome to visit our Ghosts in the Machine…

Part of the b:INFORM 2015/2016 Cloud Survey Trend SeriesMany banking regulators consider cloud computing to be a form of outsourcing. For supervised financial institutions, use of external cloud computing for material business functions is a regulated activity. Previously issued guidance by financial regulators on outsourcing and offshoring is likely to apply to cloud services, in addition to specific cloud related statements.Board Level Attention RequiredThe FFIEC in the US, the FCA in the UK, and APRA…