Generation Blockchain Infrastructure for Global Financial Services
CryptoKami is a Decentralized Reserve System. The CryptoKami platform is like the Ethereum platform but is only intended for use by third parties in the financial sector. Financial services organizations launch their ICOs and operate based on the open source Cardano with two CryptoKami’s inventions created third-generation POS blockchain named CryptoKami with its KAMI tokens. Additionally, CryptoKami operates on its own behalf like the US Federal Reserve (FED). This is a core technology of Crypt
The simple and serious answer is that the team behind CryptoKami is comprised of individuals and organizations with a wealth of experience, creativity, and financial literacy. Like the people and organizations that built up Bitcoin and Ethereum, they know and deeply understand the secrets of money, and the rule of supply and demand impacting the value of money growth behind the global economy. Therefore, they built the CryptoKami platform that provided a third-generation blockchain system and financial ecosystem and provided a staggering amount of not more than 210 million KAMI Tokens to meet third parties’ and end users’ needs. Additionally, the CryptoKami platform for third party financial services implements the ICO on it through the use of KAMI Tokens and must comply with the Compulsory Reserves Mechanism on the principle of decentralized agreements to always ensure the system’s liquidity, thereby providing strong protections for third parties and end users. The CryptoKami platform operates like the US Federal Reserve (FED) by regulating the SUPPLY and DEMAND of KAMI tokens via a Compulsory Reserve Mechanism based on the Comreme Algorithm (CryptoKami’s invention) through the Regulatory Contract (CryptoKami’s invention) for financial third parties operating on it, like the FED regulates the supply of money to commercial banks. The central bank model that regulates the SUPPLY and DEMAND of cryptocurrency is combined with financial ecosystems that have serial needs for KAMI tokens.
Regulations trigger disruption and innovation
The term RegTech has emerged to characterize innovation and emerging technology focused on solving complex regulatory challenges, enabling smarter regulation, and reducing complexity in existing regulation and compliance. There are many aspects to these activities, such as automation, data and analytics, machine learning and AI, and blockchain and cyber to name but a few. Historically, regulation was seen as a barrier to entry into Financial Services. The requirements were complex, burdensome and difficult for small, new organizations to adopt. Now we see the reverse. Many incumbents are hampered by complex processes and governance they have built up around risk and regulation, and many have also developed a significant degree of risk aversion given some of the headline-grabbing issues of the last decade. Therefore, it is surprising to find innovation influencing this area. There is a growing body of complex regulations such as Basel, Dodd-Frank, Comprehensive Capital Analysis and Review (CCAR), General Data Protection Regulation (GDPR), Markets in Financial Instruments Directive (MiFID), and the Revised Payment Service Directive (PSD2), among others, that lend themselves to solutions that can leverage technology. These regulatory hurdles can cost the world’s largest banks up to US$4 billion per annum, as many of the processes to address them are still manual. In line with this, survey respondents indicated that regulations in the digital identity authentication and anti-monetary laundering/’know your client’ (AML/KYC) spaces were strong barriers to innovation (see table below). This is due to the complex and time-consuming nature of managing detailed customer information in a global setting with constantly evolving rules and regulations. Within the DeNovo platform, we currently follow over 230 startups that help financial institutions manage their regulatory and compliance processes. These companies’ funding has increased at a CAGR of 44% over the last four years with cumulative investment at US$1.4 billion. More relevant trends include
1) the automation of regulatory and compliance processes, typically utilizing AI and machine learning, and
2) increased automation of customer identification processes (e.g., KYC/AML) to reduce fraud and improve client interactions.
Regulators are also looking at ways to leverage new technology and analytics to better manage systemic risk and large amounts of data. By accumulating large amounts of data, they can analyze and assess the market and set the landscape for innovation while ensuring that they evolve. The use of blockchains is also a specific area of interest for regulators given the native ‘regulatory capabilities’ that are embedded in the technology. Transactions can be validated on the fly rather than monitored by intermediaries after the fact. We are going to see the deployment of increasingly more sophisticated technology that can monitor, capture, and analyze a broad set of data, behaviors, and activity. These are likely to ultimately provide a more comprehensive and efficient approach to regulation and risk management, although there may be some speed bumps along the way.