Sentences with phrase «regulatory arbitrage»

"Regulatory arbitrage" refers to the practice of taking advantage of different regulations and laws in different countries or jurisdictions to maximize profits or minimize regulations. It involves exploiting loopholes or differences in regulations to gain a competitive advantage or evade certain restrictions. Full definition
Similarly, it may simply be the legacy of private blockchains to «sell regulators on the idea of blockchains», as banks and payment processors embark upon a more sustainable path towards profitability in the form of regulatory arbitrage.
But certainly we have to avoid regulatory arbitrage.
Regulatory arbitrage: For many years, there has been a significant regulatory arbitrage between the Securities and Exchange Board of India (Sebi) and the Insurance Regulatory and Development Authority of India (Irdai) when it comes to their respective products.
This is straight - up regulatory arbitrage from the UAW.
«Initial coin offerings are just regulatory arbitrage to avoid IPO restrictions,» he said, referring to initial public offerings on which companies raise money by selling stock shares on a regulated exchange.
The construction of these «workarounds» that leverage regulatory arbitrage opportunities to execute undercover securities issuances, may be limiting the vision and creativity required to see the true scale of what ICOs and digital tokens could represent; blinding many in the industry to possible risks if they take the wrong path.
The absence of proper consumer protection was a major contributing factor to the present financial meltdown, for «it has now become clear that abrogating sound state laws, particularly regarding consumer protection, created opportunity for regulatory arbitrage that resulted in a regulatory «race - to - the - bottom.
That reference effectively lets banks hold less capital against shorter - term derivatives... «This is classic regulatory arbitrage,» said Marcus Stanley, policy director for public - interest group Americans for Financial Reform.»
The driver of this growth is, typically, mostly regulatory constraints on traditional banking that triggered regulatory arbitrage:
Add to that the divided regulatory structures that encouraged regulatory arbitrage.
While Wall Street's distributed ledger technology may offer substantial improvements over their current systems, these permissioned ledgers may not be able to provide the level of openness and regulatory arbitrage offered by Bitcoin.
The new year will usher in regulatory arbitrage amongst companies that want to develop innovative solutions, as well as from states seeking to maximize tax receipts from cryptocurrency - related businesses.
This escrow restriction leaves little room for the development of features that have removed middlemen or enabled regulatory arbitrage.
As new regulations come into place, we'll see regulatory arbitrage increase as ICOs will leverage countries with more lax regulations such as Switzerland.
Appropriate governance obviously required, but that will ultimately need to be supra - national otherwise we end up with a rats nest of regulatory arbitrage.
Co-operation rather than regulatory arbitrage between the main jurisdictions will always be best, but if that co-operation does not materialise, the UK should not chase business by offering low standards that create wider risks for the UK economy.
Willem Buiter, the global chief economist at Citi in New York stated that «ICOs and cryptocurrencies are just regulatory arbitrage.
Even a quick summary of the recent financial crisis, the starting - off point for the book under review, would require a reasonably sure grasp of such arcane matters as cross-border capital flows, fixed and floating exchange rates, securitisation, bank capital requirements and regulatory arbitrage.
The International Fair Trade Federation's director of government affairs Dominick Moxon - Tritsch described the Cabinet Office's plans as «hilariously bad» and warned they would only encourage «regulatory arbitrage».
Other reasons — regulatory arbitrage, relief frm accounting rules, tax advantages, agency problems (heads I win, tails the company loses) $ $ Apr 22, 2013
The regulatory arbitrage goes away.
He also added that, «As we develop our framework, we will also want to check in and have the conversations with, for example, US regulators, Japanese regulators and so on and so forth, so that there is some alignment of approach to avoid any regulatory arbitrage,» emphasizing on the fact that no timeframe has been set yet.
Possible conclusions include the fact such a decision may have already been priced in by traders, or the belief that, given the variety of global jurisdictions available, regulatory arbitrage will continue to propel it no matter what happens within one set of borders.
As we develop our framework, we will also want to check in and have the conversations with, for example, US regulators, Japanese regulators and so on and so forth, so that there is some alignment of approach to avoid any regulatory arbitrage.
This suggests that even if European political leaders decide on a bitcoin - unfriendly regulatory framework for digital currencies, the most likely results of this will be regulatory arbitrage of the most influential bitcoin businesses.
Senator David Perdue began a line of questioning about combating pump - and - dump schemes, regulatory arbitrage and financial arbitrage that prompted the CFTC chair to explain what «kimchi premiums» were.
In other words, they profit from regulatory arbitrage.
Hinkes, who has litigated matters in state court regarding discovery of virtual currency assets, cautions those who may want to use smart contracts for the purposes of regulatory arbitrage or exploiting loopholes.
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