Crypto Credit Association: Recent Episodes
Paul Murphy
Informational content from the Crypto Credit Association - a non profit body representing the global crypto lending industry.
Kunlun Yang, "Senior Quant" at Credmark, joins us today for a meandering conversation about around crypto, crypto lending, tradfi, DeFi, regulation, trust, risk management, Kunlun's experience in getting into crypto, and a whole lot more!
This was a great opportunity to pick the brain of a highly experienced, knowledgeable expert. Kunlun shares his views on why "the code is law", why crypto has (or doesn't have) value, usability and adoption by the broad mass of financial services consumers, open vs closed systems...too many areas to list here. Check it out if you're looking for a week's worth of insights from a consummate crypto finance professional.
A few relevant links from our discussion:
Market Risk Regulation - the Bank of England Prudential Risk Authority: SS13/13 Market Risk Supervisory Statement https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/supervisory-statement/2020/ss1313update.pdf
Curve Pool Reentrancy Exploit Postmortem July 30th, 2023 https://hackmd.io/@LlamaRisk/BJzSKHNjn
The Saga of Curve Finance: DeFi's Intricate Landscape https://dewhales.substack.com/p/the-saga-of-curve-finance-defis-intricate
"An alternative take on why Silicon Valley Bank failed" https://www.schroders.com/en-us/us/intermediary/insights/an-alternative-take-on-why-silicon-valley-bank-failed/
"Why do banks invest in MBS?" https://pages.stern.nyu.edu/~pschnabl/research/DSS_SVB.pdf
Some DeFi risk links: 1. LlamaRisk: https://cryptorisks.substack.com/ 2. Credmark's DeFi models: https://credmark.com/product?defiApi=true#learnmore
You can find Kunlun on X/Twitter at @leafyoung and on LinkedIn at https://www.linkedin.com/in/leafyoung/
The Crypto Credit Association (CCA) is an industry nonprofit representing the global crypto lending sector. Visit us at https://cca.finance / hjttps://cryptocreditassociation.org, on LinkedIn at https://www.linkedin.com/company/cryp... - join the CCA to include your voice in the growing crypto credit community!
Intro/outro music: Angelical Pad, courtersy of Luca di Alessandro https://pixabay.com/sound-effects/angelical-pad-143276/
Today's episode of the Crypto Credit Association conversation series focuses on the Markets in Crypto Assets (MiCA / MiCAR) regulation, the European Union's flagship crypto law.
Our guest, Ben Schmid of PWC, shares his analysis of some of the salient points of MiCA - what are some misconceptions about MiCA, how does it complement the EU's Markets in Financial Instruments Directive (MiFID II), what are the gaps, and what are potential future developments in European crypto finance regulations?
Markets in Crypto Assets Regulation: https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica
PWC have created a great overview of the regulation: https://legal.pwc.de/en/news/articles/the-eus-markets-in-crypto-asset-regulation-micar
MiFID II: https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mifid-ii
Howey test: https://cointelegraph.com/news/what-are-the-howey-test-and-its-implications-for-cryptocurrency
Benjamin Schmid is a Manager at PWC in Frankfurt - you can find him on LinkedIn at https://www.linkedin.com/in/benjamin-schmid-37b192b0/
Check out this recording in video format at https://youtu.be/NuwbbWG8YIE
The Crypto Credit Association (CCA) is an industry nonprofit representing the global crypto lending sector. Visit us at https://cca.finance / https://cryptocreditassociation.org, on LinkedIn at https://www.linkedin.com/company/crypto-credit-association/ - join the CCA to include your voice in the growing crypto credit community!
Today we talk about techniques that help build a more methodical, evidence-based approach to decentralized finance.
DeFi brings many opportunities for innovation, but as with traditional finance, all financial speculation entails risk. Both institutional and retail market participants can benefit from financial modelling in order to make more informed decisions.
Asan gives his perspectives on various aspects of risk modeling based on his background in financial risk management. How is the increasing speed of innovation and technology defining our ability to participate in crypto markets? What are some of the fundamental principles that will shape the future of DeFi?
Asan Tulemis is founder of Continuum, a quantitative analytics company based in Sydney, Australia. Visit Continuum at http://continuum.money/
You can find Asan on Linkedin at https://www.linkedin.com/in/atulemis
Visit the CCA at https://cryptocreditassoriation.org or https://cca.finance, and join us on LinkedIn at https://www.linkedin.com/company/crypto-credit-association
Check out this recording in video format as well, at https://youtu.be/wx4yhWixodg
Welcome Dean Tappen, Executive Director of the USTETA CLIC (Crypto Logic and Integrity Committee).
In today's video, we focus on the US regulatory environment, particularly the present state of regulation, which agencies are responsible for ensuring the stability of crypto finance, and current challenges surrounding the development of rules and structures.
Dean and I talk about how many of the failures (and failings) recently experienced across various crypto firms are nothing new in the financial sector. We discuss how rather than being tech- and innovation driven, crypto actors must understand that they are financial services firms and act accordingly, and the need to differentiate between crypto technology and crypto companies - with DeFi and related innovations having trust built in rather than relying on existent, mature regulation and unreliable norms in traditional finance.
About CLIC: "CLIC endeavors to position the United States at the forefront of innovation and development in cryptocurrency while protecting the assets of individuals.
For more information please visit https://www.usteta.org/crypto-logic-integrity-committee/ or contact Dean Tappen at dtappen@usteta.org".
You can find Dean on LinkedIn at https://www.linkedin.com/in/dean-tappen-77a067136/
Visit us at https://cca.finance or https://cryptocreditassociation.org
This is Part II of our exchange with David Weisberger, co-founder and CEO of CoinRoutes. If you missed part I, you can find it here:
https://five.libsyn.com/episodes/view/26315922
Dave shares his four considerations for regulation - protection oif client assets, robust and mandatory risk disclosure, fair and equitable markets, and items pertaining to "fiduciariness" of intermediaries.
How do these principles affect all of financial services? What is the role of risk in crypto lending and other crypto related services? What are the respective limits and roles of technology and regulation in creating trust in underlying crypto market infrastructures? What are Dave's predictions for future practices and regulations?
CoinRoutes' website is at https://coinroutes.com/
You can find Dave on LinkedIn at https://www.linkedin.com/in/dave-weisberger-7b0b9ab/
Visit us at https://cca.finance or https://cryptocreditassociation.org, and on LinkedIn at https://www.linkedin.com/company/crypto-credit-association
Don't forget to check out our YouTube channel at https://youtube.com/@cryptocredit
Intro/Outro music by Alexi Action, courtesy of Pixabay
We are joined today by David Weisberger, co-founder and CEO of CoinRoutes. CoinRoutes is a prominent and leading algorithmic trading company across CeFi and DeFi.
In Part I of this two-part conversation, Dave shares his views on a topics related to risk management, stability, and regulation in the crypto lending space.
How did excessive risk taking and lack of transparency lead to crypto failures among lenders? What are some of the similarities between bad lending and risk management in traditional banking and crypto, and why is it unreasonable to single out crypto for irresponsible practices? How can crypto technology help create stability through trust, transparency, and traceability, and how can it open up the kinds of closed financial systems that are a major factor in traditional bank collapses such as SVB?
Mark Yusko: https://en.wikipedia.org/wiki/Mark_W._Yusko
Join us for part II of this exchange, when we talk more about regulatory principles: https://five.libsyn.com/episodes/view/26315937
CoinRoutes' website is at https://coinroutes.com/
You can find Dave on LinkedIn at https://www.linkedin.com/in/dave-weisberger-7b0b9ab/
Visit us at https://cca.finance or https://cryptocreditassociation.org, and on LinkedIn at https://www.linkedin.com/company/crypto-credit-association
Don't forget to check out our YouTube channel at https://youtube.com/@cryptocredit
Intro/Outro music by Alexi Action, courtesy of Pixabay
Raphael Baumann of PST Legal Consulting and John Salomon, member of the CCA board, discuss the Swiss approach to financial services, crypto, and crypto lending regulation.
In this video, we talk about Switzerland's philosophy and system of financial services and contract rules, the role of various regulatory and enforcement agencies, and crypto-specific elements of Swiss financial regulations.
This is the first in a series of CCA recordings comparing various countries' crypto currency, lending, and risk management rules.
Swiss Financial Market Supervisory Authority (FINMA) - https://www.finma.ch/
Contract law (Obligationenrecht - part V of Swiss civil law, the Zivilgesetzbuch) - https://www.fedlex.admin.ch/eli/cc/27/317_321_377/de
Customer credit law (Konsumkreditgesetz) - https://www.fedlex.admin.ch/eli/cc/2002/593/de
FINMA public warning list - https://www.finma.ch/en/finma-public/warnungen/
Some example information about consumer credit rules (by canton): Zug - https://www.sz.ch/unternehmen/arbeit-gewerbeaufsicht/gewerbeaufsicht/konsumkredite.html/72-443-4443-1855-1848 Schwyz - https://www.sz.ch/unternehmen/arbeit-gewerbeaufsicht/gewerbeaufsicht/konsumkredite.html/72-443-4443-1855-1848
Swiss regulation collection about blockchain and DLT - https://www.sif.admin.ch/sif/de/home/finanzmarktpolitik/digit_finanzsektor/blockchain.html
Bonus link for the bored: Swiss taxation laws related to crypto - https://www.estv.admin.ch/estv/de/home/direkte-bundessteuer/fachinformationen-dbst/kryptowaehrungen.html
To follow us on YouTube: https://www.youtube.com/@cryptocredit
Visit us at https://cca.finance, and on Linkedin at https://www.linkedin.com/groups/12743744/
Raphael Baumann is a lawyer with Zug (Switzerland) based PST Legal & Consulting. He has been actively engaged in compliance and legal topics in the crypto industry for several years, and serves as legal advisor to the Crypto Credit Association.
Visit PST Legal & Consulting's webpage at https://pst-legalconsulting.ch
Darshan, Paul, and John continue last episode's discussion about risk management in crypto lending. What went wrong, how can technology, regulations, and business good practices help remediate risk to all involved.
Part I: https://youtu.be/N7ZuVb_eFCA
.This is part II of II around topics related to risk in crypto lending, and the fourth in a series of online events hosted by the CCA. Future episodes will include conversations about regulation, internal risk management controls, and similar topics relevant to the industry.
For an explanation of decentralized finance (DeFi): https://www.investopedia.com/decentralized-finance-defi-5113835
Also check out this video at https://youtu.be/ypE6rqdQ5Oc
Visit us at https://cca.finance and on LinkedIn at https://www.linkedin.com/groups/12743744/
Darshan, Paul, and John talk about collateralization in crypto lending, over-and undercollateralized credit, parallels to real-world lending, and why so many basic aspects of risk management, data-driven risk scoring practices, and general common sense good practices failed in recent crypto lender insolvencies.
This is part I of II around topics related to risk in crypto lending, and the third in a series of online events hosted by the CCA.
Visit us at https://cca.finance
Wondering what crypto credit is?
Listen to Darshan Vaidya (Credora) and Paul Murphy (Credmark) explain what it is and how it relates to credit in traditional finance.
This is the second in a series of online events hosted by the CCA.
Visit us at https://cca.finance
Find out why the Crypto Credit Association was formed, and why you should become a member!
This is the first in a series of online events hosted by the CCA.
Visit us at https://cca.finance