UK watchdog FCA to deploy blockchain in enhancing regulatory reporting

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UK’s regulator, the Financial Conduct Authority (FCA), intends to leverage blockchain technology to enhance its regulatory reporting.

According to the FCA, the blockchain-based digital regulatory reporting initiative seeks to lower costs in compliance checks. The initiative is being undertaken in partnership with the bank of England.

FCA head Nikhil Rathi notes that the current regulatory reporting is estimated to cost between £1.5 billion to £4 billion annually for the 20,000 rules across 58,000 firms.

THAT’S WHY WE’RE WORKING WITH THE BANK OF ENGLAND ON THE DIGITAL REGULATORY REPORTING INITIATIVE. BY CONNECTING TO FIRMS THROUGH BLOCKCHAIN AND API TECHNOLOGY AND IMPLEMENTING MACHINE-READABLE AND EXECUTABLE REGULATION, COMPLIANCE CHECKS CAN BE COMPLETED IN NEAR REAL-TIME,” SAID RATHI WHILE ADDRESSING THE ANNUAL MANSION HOUE GATHERING IN LONDON.

In recent months, the FCA has been accelerating its regulatory mandate on the financial sector. In July, the agency opened an office in Leeds and recruited 100 staff ranging from data scientists to data analysts.

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