Search results

1 – 10 of 233
To view the access options for this content please click here
Article
Publication date: 21 August 2019

Michael L. Spafford, Daren F. Stanaway and Sabin Chung

To analyze the CFTC’s approach to regulating cryptocurrencies and blockchain technologies in light of their cross-border nature, limitations on the CFTC’s extraterritorial

Abstract

Purpose

To analyze the CFTC’s approach to regulating cryptocurrencies and blockchain technologies in light of their cross-border nature, limitations on the CFTC’s extraterritorial authority, and the CFTC’s prerogative to work cooperatively with foreign regulators.

Design/methodology/approach

Discusses the principles set forth in CFTC Chairman Christopher Giancarlo’s White Paper regarding cross-border swap regulation; analyzes the similar nature of cross-border issues arising from regulation of cryptocurrencies and blockchain technologies; examines regulations and guidance implemented by foreign authorities in the blockchain and cryptocurrency space; and assesses the limitations of the CFTC’s extraterritorial authority.

Findings

The principles set forth in Chairman Giancarlo’s White Paper regarding cross-border swap regulation apply equally to blockchain technologies and cryptocurrencies, and as such, the CFTC may wish to pursue an analogous approach to regulating cryptocurrencies and blockchain technologies.

Practical implications

The CFTC should exercise deference to and cooperate with foreign counterparts to regulate cryptocurrencies and blockchain technologies that traverse international borders, thereby avoiding overlapping and potentially conflicting regulation while fostering an innovative growth environment for emerging technologies.

Originality/value

In-depth analysis and insight from experienced professionals in the CFTC and cross-border investigations and enforcement space.

Details

Journal of Investment Compliance, vol. 20 no. 3
Type: Research Article
ISSN: 1528-5812

Keywords

To view the access options for this content please click here
Article
Publication date: 9 May 2013

Kunnawee Thirarungrueang

This paper seeks to provide the reader with a clear insight into the discussion over the voluntary aspect of corporate social responsibility (CSR) and the attempts to…

Downloads
3234

Abstract

Purpose

This paper seeks to provide the reader with a clear insight into the discussion over the voluntary aspect of corporate social responsibility (CSR) and the attempts to introduce regulatory reforms to control corporate activities within Australia.

Design/methodology/approach

This paper evaluates the arguments regarding the need for CSR and the criticisms against its voluntary initiative, and analyses three proposed aspects for regulatory amendment in Australia: fiduciary duty, extraterritorial regulation and corporate disclosure.

Findings

This paper recognises the attributes of both the mandatory and voluntary aspects, and suggests that there needs to be a balance between both mechanisms in order to achieve a positive outcome.

Originality/value

Although, in Australia, amendment proposals have not been approved, the discussions over regulatory reform will continue. This paper will provide those involved in this field with an insight to the underlying issues over directors' duties, extraterritorial regulation and corporate disclosure. The understanding of these issues will be useful in the future development of appropriate mechanisms regarding CSR.

Details

International Journal of Law and Management, vol. 55 no. 3
Type: Research Article
ISSN: 1754-243X

Keywords

To view the access options for this content please click here
Article
Publication date: 1 March 2001

Kern Alexander

This paper examines the need for international regulation of financial markets and suggests the possible role that a global financial supervisor might play in providing…

Abstract

This paper examines the need for international regulation of financial markets and suggests the possible role that a global financial supervisor might play in providing effective regulation of international financial markets. The first part discusses the nature of systemic risk in the international financial system and the necessity for international Minimum Standards of prudential supervision for banking institutions. The second part examines the efforts of the Basel Committee on Banking Supervision to devise non‐binding international standards for managing systemic risk in financial markets. Recent financial crises in Asia, Russia and Latin America suggest, however, that informal efforts by international bodies such as the Basel Committee are inadequate to address the risk of systemic failure in financial systems. The third part therefore argues that efficient international financial regulation requires certain regulatory functions to be performed by a global supervisor acting in conjunction with national regulatory authorities. These functions should involve the authorisation of financial institutions, generation of rules and standards of regulatory practice, surveillance of financial markets, and coordination with national authorities in implementing and enforcing such standards.

Details

Journal of Money Laundering Control, vol. 5 no. 1
Type: Research Article
ISSN: 1368-5201

To view the access options for this content please click here
Article
Publication date: 1 January 2001

Kern Alexander

The need for international regulation of financial markets became apparent in the mid‐1970s in response to the post‐Bretton Woods liberalisation of financial markets. The…

Abstract

The need for international regulation of financial markets became apparent in the mid‐1970s in response to the post‐Bretton Woods liberalisation of financial markets. The elimination of the fixed exchange rate parity with gold resulted in the privatisation of financial risk, which created pressure to eliminate controls on cross‐border capital movements and the further deregulation of financial markets. It became necessary for national regulatory authorities to promote safe and sound banking systems through the effective management of systemic risk in national markets. Similarly, the need for international standards of prudential supervision was also recognised, to prevent solvent banking institutions in one jurisdiction from losing business to less respectable institutions operating in other jurisdictions whose laws permitted cut‐rate financial services and other risky financial practices. The privatisation of financial risk also created the need for financial institutions to spread their risks over many assets and activities, which led, in turn, to a significant increase in short‐term cross‐border portfolio investment that has, in many instances, exposed capital‐importing countries to increased systemic risk due to the volatility of such investments.

Details

Journal of Financial Crime, vol. 8 no. 3
Type: Research Article
ISSN: 1359-0790

To view the access options for this content please click here
Article
Publication date: 1 January 2001

Donald C. Langevoort

Some 40 years have now passed since the US Securities and Exchange Commission (SEC) began seriously to attack the problem of insider trading in its seminal Cady, Roberts

Abstract

Some 40 years have now passed since the US Securities and Exchange Commission (SEC) began seriously to attack the problem of insider trading in its seminal Cady, Roberts decision. Since then, a complex pattern of regulation has evolved, largely through a common law process of judicial interpretation of the open‐ended anti‐fraud provision of the federal securities laws, Rule 10b‐5. While many interpretative questions still remain open, US law in this area broadly prohibits trading based on material non‐public information when:

Details

Journal of Financial Crime, vol. 8 no. 3
Type: Research Article
ISSN: 1359-0790

To view the access options for this content please click here
Article
Publication date: 6 July 2015

Roger Alain Szajngarten

This study aims to analyze Payday loans and many similar products which are a relatively new phenomena in the USA, but have been rapidly expanding particularly after the…

Abstract

Purpose

This study aims to analyze Payday loans and many similar products which are a relatively new phenomena in the USA, but have been rapidly expanding particularly after the 2008 financial crisis, and have taken a heavy toll on the most vulnerable members of our society.

Design/methodology/approach

An extensive literature review of the key US features of payday loans, the regulatory framework and its limitations, the issues and the most recent actions taken to date. The review also includes work done by the European Union, the Organization for Economic Cooperation and Development and the United Nations while discussing how the Internet and extraterritoriality influence the current landscape.

Findings

With the advent of globalization and the Internet, the issues associated with payday loans have become harder to tackle, particularly in the USA, given the arcane state regulations used to address the numerous frauds and abuses plaguing the industry. The lack of any international approach combined with increasing cases where questionable actors leverage extraterritoriality, making addressing the issues even more challenging.

Originality/value

This is an all-encompassing review aimed at expanding on existing approaches to properly provide and regulate payday loans and similar alternative sources of credit in this rapidly changing environment; pragmatic domestic and international policy recommendations are listed accordingly.

Details

Journal of Money Laundering Control, vol. 18 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

To view the access options for this content please click here
Article
Publication date: 7 January 2019

Angela S.M. Irwin and Caitlin Dawson

The purpose of this paper is to show how global regulation of cryptocurrencies and other cybercurrencies can assist in addressing the challenges of attribution when…

Downloads
1786

Abstract

Purpose

The purpose of this paper is to show how global regulation of cryptocurrencies and other cybercurrencies can assist in addressing the challenges of attribution when investigating ransomware attacks and other types of cybercrime using these payment methods.

Design/methodology/approach

A literature review, looking at current academic research and discourse on the topic cryptocurrency regulation, is conducted to highlight current thinking and perceived difficulties in implanting a global regulatory framework. In addition, the research explores how governments have addressed the risks posed by cryptocurrencies and how regulation has been implemented. The research focuses on the regulatory approaches of Australia, Europe and the Americas to determine whether they could feasibly address the risks posed by cryptocurrencies and be implemented on a global scale.

Findings

To date, few sustained efforts have been made to regulate Bitcoin or other cybercurrencies. Where regulation has been introduced, it has often proven too costly to implement, thereby, stifling Bitcoin industry growth, or too ad hoc to function effectively. These regulatory pitfalls are substantiated by the continuing difficulty faced by law enforcement agencies, in identifying individual Bitcoin users and separating those that are using them for nefarious purposes from those that are using them for legitimate ones. These challenges appear to grow exponentially when it comes to prosecuting criminals for Bitcoin-related offences, due to the enormous lack of agreement within the justice system of most countries as to the appropriate legal definition for Bitcoin. This research highlights three characteristics that will be vital to the success of any global regulatory framework. These are consistency, clarity and cost-effective implementation. A regulatory framework for Bitcoin that lacks any one of these elements will fail to meet the requirements of every stakeholder in the regulatory process. A framework that is too costly to implement will stifle fintech innovation, subsequently depriving national economies of the multitude of potential benefits promised by fostering fintech entrepreneurship. Equally, a framework that is inconsistent will hamper the global cooperation necessary to combat Bitcoin-related crime.

Originality/value

This research evaluates research, discourse and regulatory responses from academic and governmental sources and discusses how a global response to cryptocurrency regulation will help address the growing problem of attribution when it comes to ransomware attacks, which has experienced a considerable spike in recent months.

Details

Journal of Money Laundering Control, vol. 22 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

To view the access options for this content please click here
Article
Publication date: 14 May 2018

Chiara Oldani

The purpose of this paper is to underline the (hidden) risks posed after the crisis by the exemption of non-financial operators, especially sovereigns, from the regulatory…

Abstract

Purpose

The purpose of this paper is to underline the (hidden) risks posed after the crisis by the exemption of non-financial operators, especially sovereigns, from the regulatory reforms of over the counter (OTC) derivatives undertaken by G20 countries in the absence of accounting data on trading.

Design/methodology/approach

Recent financial regulatory improvements are reported to underline that the trading of OTC derivatives by sovereigns and local administrations does not take place under the new regulatory umbrella, because of the relative size of the institution, the lack of incentives to adhere to Centralized Counterparty Systems (CCPs) and most of all, the absence of proper accounting rules. Sovereigns and local administrations have the potential to undermine global financial stability.

Findings

The limited availability of accounting data on derivatives’ use by public administrations constitutes a barrier towards a full comprehension of risks involved. Sovereigns should be compelled to adhere to the CCPs and the collateralized system of trading; the short-term costs of adhering to CCPs are worth $20bn.

Research limitations/implications

The new regulatory system failed to explicitly consider the trading of sovereigns and this can reduce the effectiveness of regulation itself and can have negative impact on financial stability; in fact, omitting sovereigns from these regulations represent a significant risk oversight because they are systemically important players, although with a special political power.

Originality/value

Despite progress made in improving the transparency and resilience of OTC derivative markets after the subprime crisis, sovereigns and public administrations are exempted from the new regulation, posing severe risks to financial stability.

Details

Journal of Financial Regulation and Compliance, vol. 26 no. 2
Type: Research Article
ISSN: 1358-1988

Keywords

To view the access options for this content please click here
Article
Publication date: 2 May 2017

Perri Reynolds and Angela S.M. Irwin

The purpose of this paper is to critically analyse research surrounding the anonymity of online transactions using Bitcoin and report on the feasibility of law enforcement…

Downloads
6392

Abstract

Purpose

The purpose of this paper is to critically analyse research surrounding the anonymity of online transactions using Bitcoin and report on the feasibility of law enforcement bodies tracing illicit transactions back to a user’s real-life identity.

Design/methodology/approach

The design of this paper follows on from the approach taken by Reid and Harrigan (2013) in determining whether identifying information may be collated with external sources of data to identify individual users. In addition to conducting a detailed literature review surrounding the anonymity of users, and the potential ability to track transactions through the blockchain, four Bitcoin exchange services are examined to ascertain whether information provided at the sign-up stage is sufficiently verified and reliable. By doing so, this research tests the ability for law enforcement to reasonably rely upon this information when attempting to prosecute individuals. Additionally, by submitting fake information for verification, the plausibility of these services accepting fraudulent or illegitimate information is also tested.

Findings

It may be possible to identify and prosecute bad actors through the analysis of transaction histories by tracing them back to an interaction with a Bitcoin exchange. However, the compliance and implementation of anti-money laundering legislation and customer identification security standards are insufficiently used within some exchange services, resulting in more technologically adept, or well-funded, criminals being able to circumvent identification controls and continue to transact without revealing their identities. The introduction of and compliance with know-your customer and customer due diligence legislation is required before law enforcement bodies may be able to accurately rely on information provided to a Bitcoin exchange. This paper highlights the need for research to be undertaken to examine the ways in which criminals are circumventing identity controls and, consequently, financing their illicit activities.

Originality/value

By ascertaining the types of information submitted by users when exchanging real currency for virtual currency, and seeing whether this information may be accepted despite being fraudulent in nature, this paper elucidates the reliability of information that law enforcement bodies may be able to access when tracing transactions back to an individual actor.

Details

Journal of Money Laundering Control, vol. 20 no. 2
Type: Research Article
ISSN: 1368-5201

Keywords

To view the access options for this content please click here
Article
Publication date: 2 July 2018

Angela S.M. Irwin and Adam B. Turner

The purpose of this paper is to highlight the intelligence and investigatory challenges experienced by law enforcement agencies in discovering the identity of illicit…

Downloads
1597

Abstract

Purpose

The purpose of this paper is to highlight the intelligence and investigatory challenges experienced by law enforcement agencies in discovering the identity of illicit Bitcoin users and the transactions that they perform. This paper proposes solutions to assist law enforcement agencies in piecing together the disparate and complex technical, behavioural and criminological elements that make up cybercriminal offending.

Design/methodology/approach

A literature review was conducted to highlight the main law enforcement challenges and discussions and examine current discourse in the areas of anonymity and attribution. The paper also looked at other research and projects that aim to identify illicit transactions involving cryptocurrencies and the darknet.

Findings

An optimal solution would be one which has a predictive capability and a machine learning architecture which automatically collects and analyses data from the Bitcoin blockchain and other external data sources and applies search criteria matching, indexing and clustering to identify suspicious behaviours. The implementation of a machine learning architecture would help improve results over time and would be less manpower intensive. Cyber investigators would also receive intelligence in a format and language that they understand and it would allow for intelligence-led and predictive policing rather than reactive policing. The optimal solution would be one which allows for intelligence-led, predictive policing and enables and encourages information sharing between multiple stakeholders from the law enforcement, financial intelligence units, cyber security organisations and fintech industry. This would enable the creation of red flags and behaviour models and the provision of up-to-date intelligence on the threat landscape to form a viable intelligence product for law enforcement agencies so that they can more easily get to the who, what, when and where.

Originality/value

The development of a functional software architecture that, in theory, could be used to detected suspicious illicit transactions on the Bitcoin network.

Details

Journal of Money Laundering Control, vol. 21 no. 3
Type: Research Article
ISSN: 1368-5201

Keywords

1 – 10 of 233