The chamber of the United States: regulatory measures hampering the development of FinTech in the country

The chamber of the United States: regulatory measures hampering the development of FinTech in the country

The complexity of financial regulation constrains the development of DLT technology, according to the accounting chamber of the United States (GAO).

The audit chamber of the States — audit, assessment, and analytical investigative body known as the “watchdog of Congress”, published a detailed report on the state of Affairs in the field of Finance.

In a document dated March 22, discusses the advantages, risks and regulations related to the sector, and proposes recommendations to improve the regulation of space.

According to analytical-investigative body, the lack of regulatory clarity in the US “leads to the fact that some of the DTL start-UPS delay the release of innovative products and services, or do not launch them in the United States” because it is concerned about the possible “normative interpretation” of their activities.

Further, in a 132-page report says:

Complex financial regulatory structure, the US may complicate FINTECH companies the task to determine the laws to which they must adhere, and to clarify the normative status of their activities

GAO also identificeret “state requirements for licensing and accreditation” how often “prohibitively expensive” for DLT projects.

With regards to cryptocurrency, the report identifies three main risks that are associated with: irreversible transactions, potential theft and fraudulent ICO.

As for DLT, the report States that the technology can reduce expenditures by reducing operational costs associated with payments and also reduce the time of calculations for the operations with currency, derivatives, and securities. The report referred to cybersecurity and potential attack 51%

This is not the first case when the GAO studied FINTECH in General, blockchain and cryptocurrency in particular.

In April 2017, a report was published that addressed the Blockchain technology and modern industrial development. The chamber of the United States then noted that I’m not sure whether technology new regulations.

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