With more regulators circling the crypto-industry, learn how you can develop long-lasting relationships with them to minimise disruptions.
Regulators are still trying to clamp down on unregulated methods of funding like Initial Coin Offerings (ICOs), Initial Token Offerings (ITOs) or Initial Security Offerings (ISOs).
This raises a lot of issues for crypto-businesses, especially if business owners haven’t dealt with regulators before, or if they are based in different countries to the company’s residence.
With this in mind, it’s essential that you know what is required to ensure your business stays in their good books for the foreseeable future.
Instead of seeing a regulator as a burden, you should use this as a means of advancing or benefitting your business’ interests.
Although a lot of regulators will understand your business model, this isn’t always the case. If your business has a complex level of intricacy, it’s vital that you articulate what you do and why you do it clearly and precisely.
Or if you really want to show the regulator a deeper level of care and attention to detail, try explaining how your business model is delivered in line with applicable regulation and policies. Failure to effectively explain what your business does to a regulator could mean your company is misinterpreted.
For instance, are you able to show the regulator how your business is customer-centric? Or can you tell them what you are going to do and why are you going to do it this way?
If you can successfully articulate the unpredictable process-orientated interactions and describe the ins and outs of your framework, you will start to build trust with the regulator.
Be clear and transparent while sharing your data and answering questions to ensure they’re not just nodding their head to hurry the conversation along or misunderstanding you altogether. Listen to what the regulator wants, use clear language (with no jargon) and remember to answer the question.
Completing an industry consultation is the perfect opportunity to put across a well-constructed argument about a point. However, it’s essential that you respond in the right way. If you come across rude and give off the impression that the regulator is just doing their job for the sake of it, this could make them take a disliking to your business or raise a few unwanted questions.
At the end of the day, regulators are hard-working individuals who live a life outside of work as well. That’s why it’s important to get to know your case officer on a personal level.
Try to find a common interest or ask him/her about their education, hobbies or general opinions. This will enable you to communicate with him/her more effectively.
It’s also worth noting that many officers liaise with other ones, so be careful what you say.
The key to building a positive relationship with a regulator is ultimately communication. Get to know your regulator and always try to remain transparent throughout the process. If you give them a reason to doubt your business from the outset, you’ll essentially face an uphill battle.
Offering the regulator a clear narrative on what you do and how you plan to carry out these points within the boundaries of current regulations and policies will give you the springboard to success.
Data Driven Investor
Data Driven Investor (DDI) brings you various news and op-ed pieces in the areas of technologies, finance, and society. We are dedicated to relentlessly covering tech topics, their anomalies and controversies, and reviewing all things fascinating and worth knowing. DDI has only one mission: see what is coming, and do what is important – “NOW”.
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Dr. Justin S P Chan has a passion for clarity and synergy - seeing through the complexity of the intersecting spheres of technology, finance, innovation and social dynamics, to enable game-changing collaborations between entrepreneurs and innovative opportunities. Combining the vision of a true inventor and entrepreneur with his data-driven, evidence-based approach to investment, Justin also co-founded OCIM and serves as Chief Investment Officer for its fund management platform. Within OCIM, He co-manages OC Horizon Fintech, a transformational hedge fund, where he blends real applications, expertise and future-awareness into truly exceptional investment performance. Justin gains inspiration for these projects from his global network of contacts in investment and fintech communities, where he stays on the pulse of fast-moving conversations and trends affecting global markets and emerging technologies.
John DeCleene is a fund manager for OCIM’s fintech fund, and currently progressing towards becoming a CFA charter holder. He loves to travel for business and pleasure, having visited 38 countries (including North Korea); he represents the new breed of global citizen for the 21st century. Whilst having spent a lot of his life in Asia, John DeCleene has lived and studied all over the world - including spells in Hong Kong, Mexico, The U.S. and China. He graduated with a BA in Political Science from Tulane University in 2016.
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