The UK Financial Conduct Authority and the Bank of England have begun work on a blockchain project. The goal is to expedite the review of regulatory reporting.
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reported agency Finextra. Nikhil Rathi, Chairman of the UK Financial Conduct Authority (FCA), said the cost of regulatory reports submitted to the agency is estimated at between £ 1.5bn and £ 4bn a year. In addition, the regulator checks more than 58,000 firms for compliance with the rules, of which there are about 20,000.
“That is why we started working with the Bank of England on a solution designed to significantly simplify and speed up document verification. Thanks to the blockchain and API, the procedure can be carried out in real time. This will allow us to act faster and violations will be rooted out more effectively, ”said Rathi.
He added that the implementation of this idea will take about three years, for which a budget of £ 120 million has been allocated. With the help of blockchain, FCA will be able to control more enterprises working with huge amounts of data. Many financial market players complain about high licensing fees and costs of repurposing production, and data providers face high barriers to entry, Rathi said.
FCA believes that a blockchain-based solution will increase the transparency of business processes, so the department intends to connect accountable firms to it. According to Ratha, by the end of the year it will be possible to understand what further steps should be taken to implement this program, taking into account the capabilities of the FCA.
This year, the Internal Revenue Service (IRS) announced that it will also use the blockchain to detect tax evaders.
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