The rapid growth of technological innovation has expanded markets and created tremendous opportunities in the financial services industry. Financial institutions have increased their use of, and reliance on, technology to manage and understand their businesses, markets, trading activity, clients, and regulatory compliance. Blockchain technology is proving to be one of the most transformative new developments as it has led to the creation of cryptocurrencies, smart contracts, and myriad other applications. The ability of blockchain technology to track everything from the execution of financial transactions to the movement of goods and materials in a distributed, immutable ledger is transforming industries around the world, including financial services, insurance, health care, shipping, computing, and more.
The increasing use of FinTech, as well as the explosive growth of investment in cryptocurrencies and digital tokens, has spurred strong interest from industry regulators. Murphy & McGonigle has substantial experience in dealing with these regulators. The Murphy & McGonigle FinTech & Blockchain team advises broker-dealers, traders, exchanges, banks, private equity and venture investors, asset managers, private funds and other market participants on complex regulatory and legal matters related to the use of technology. We regularly work with a diverse range of companies and individuals that have a stake in legal and regulatory developments impacting blockchain technology.
For news, blogs, events, and other information on legal developments in the Blockchain space, visit our website www.blockchainlawcenter.com.
Technology will continue to fundamentally transform both the financial services and legal industries. Initial Coin Offerings, cryptocurrencies, and digital token exchanges are under heavy scrutiny from regulators, who are launching investigations, intervening in trading and offerings, and appear to be planning to bring a significant number of enforcement actions. In addition to the expansion of blockchain, other technologies are driving changes to how financial services are provided and consumed. Artificial intelligence, for example, is playing a greater role in the delivery of financial services. AI is the engine of so-called “robo-advisors” that provide investment advice to customers without human intervention. Machine learning (including deep learning) is also increasingly being used for automated trading, including high-frequency trading, which engages in complex transactions, again without human intervention.