‘The system needs a reboot’ amid FinCEN leak, says Quant CEO

The financial industry is in turmoil today following the leak of crucial FinCEN data that alleges a series of wrongdoings by major banks across the world.

The leaked documents, according to the BBC, state that HSBC moved millions of Dollars around the world despite being warned that those funds were the proceeds of a ponzi scheme.

A leak of this magnitude will affect not only the traditional finance sector but also new entrants to the market like cryptocurrencies and fintech.

Regulators and lawmakers will want to ensure that a watertight system is built across the board, which could well have an impact of the digital asset industry over the coming years.

The CEO of blockchain technology firm, Gilbert Verdian, believes that the entire system needs a “reboot” following the FinCEN leak.

“The entire financial system is built upon trust.” He said. “That regulators regulate appropriately, that parties act appropriately and facilitators identify bad actors. It is mind-blowing that these documents reveal some of our leading financial institutions have not only known about, but actively facilitated criminal activity.

“The reality is that with only human controls, there is always room for this kind of thing to happen. And the vastness of a borderless world has made the entire system harder to manage and sustain trust.

“The system needs a reboot, this time to embed high grade trust in every process and transaction which automates these complex decisions. The system needs to decentralise and automate trust, removing the ability for people to circumnavigate regulations and allowing for a larger frontier of parties to face and address risk head on, rather than dealing with it in isolation.

“The system needs the age of trust to survive.”

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