Connect with us

Finance Magnates

ESMA Sets Out Guidance on Cloud Outsourcing  

Avatar

Published

on

The European Securities and Markets Authority (ESMA), has published a consultation paper on guidelines on outsourcing to cloud service providers, the securities markets regulator announced today.

 

According to the announcement, the guidelines’ purpose is to provide guidance on the outsourcing requirements applicable to financial market participants when they outsource to cloud service providers.

 

They aim specifically to help firms and competent authorities identify, address and monitor the risks and challenges that arise from cloud outsourcing arrangements.

“Cloud outsourcing can bring benefits to firms and their customers, for example reduced costs and enhanced operational efficiency and flexibility. It also raises important challenges and risks that need to be properly addressed, particularly in relation to data protection and information security,” Steven Maijoor, Chair, said.

“Financial markets participants should be careful that they do not become overly reliant on their cloud services providers.. They need to closely monitor the performance and the security measures of their cloud service provider and make sure that they are able to exit the cloud outsourcing arrangement as and when necessary,” he added.

Suggested articles

Capitalise Appoints William Klippel as its Head of SalesGo to article >>

Maijoor pointed out that today’s proposals will help firms understand and mitigate the risks that they are exposed to when outsourcing to cloud service providers.

Guidelines

The proposed guidelines set out the governance, documentation, oversight and monitoring mechanisms that firms should have in place and the assessment and due diligence which should be undertaken prior to outsourcing.

They also include guidance on the minimum elements that outsourcing and sub-outsourcing agreements should include and the exit strategies and the access and audit rights that should to be catered for.

Additionally, the guidelines set out the notification to competent authorities and the supervision by competent authorities.

ESMA said that the proposed guidelines are consistent with the  recommendations on outsourcing to cloud service providers published by the European Banking Authority (EBA) in February 2017 and subsequently incorporated into revised EBA guidelines on outsourcing arrangements in February 2019, and the guidelines on cloud outsourcing published by the European Insurance and Occupational Pensions Authority (EIOPA) in February 2020.

The consultation is open until 1 September 2020.

Source: https://www.financemagnates.com/regulation-4/esma-sets-out-guidance-on-cloud-outsourcing/

Finance Magnates

Judge Tosses $53M Fraud Case Against Ikon Finance and Hantec Market

Avatar

Published

on

A judge in the UK high court dismissed a breach-of-contract suit against both Ikon Finance and Hantec Markets where a heavyweight retail client was seeking $53.0 million in damages over the allegedly misappropriated funds.

Ikon Finance exited the retail forex market in 2017 following regulatory restrictions by the UK Finance Conduct Authority (FCA). At the time, Hantec acquired the retail client base of IKON Finance after the regulator said that the rival broker has inappropriate human and operational resources in place.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

Following this, a Jordanian resident named Hafez Fakhri Taji Al Farouqi accused IKON Finance of moving his account to Hantec without his consent, seeking nearly $11.6 million in misappropriated funds and damages. He also filed a lawsuit against Hantec for $42 million in civil damages, alleging the migration of his account took place without prior authorization.

Al Farouqi also claimed that both brokers secretly deducted unauthorized commission and introducer fees from his account. Another argument was that Hantec Markets closed his account without sending cancellation terms, giving reasonable notice, or enough time to make alternative arrangements.

Suggested articles

FBS CopyTrade Became the Best Application for Copy Trading in 2020Go to article >>

The litigation began in December 2019, but after a six-month investigation, a judge acquitted both brokers, saying it was “fanciful” to believe they had faked trades that caused Al Farouqi to incur substantial losses. The case was entirely tossed out because the evidence was too weak to support a conviction that IKON and Hantec conned the Jordanian investor or breached regulations when they closed out.

Hantec Markets responds

Back in October, Hantec Markets has strongly refuted all claims of Hafez, and the FCA-regulated broker is fighting back against each allegation. Specifically, the company said it’s neither obliged to continue their relationship or to explain for what reasons it closed any client’s account. It also denied that the retail trader had suffered any loss or damage as a result of its decisions and that it gave him a “reasonable” nine days’ notice before the closure of his account.

After doing a background check, Hantec added in its defense that it did not charge any commission from Al Farouqi’s accounts. The UK-based FX trading brand also tried to dismiss the suit on the grounds that the investor agreed to move his trading account after he ticked a dialogue box to accept Hantec’s terms and conditions.

Al Farouqi reiterated in its December that the broker didn’t follow good practices as a nine-day notice period did not give him an opportunity to respond if they misunderstood the facts of his situation.

As widely known, IKON Finance managed to avoid several lawsuits against its operations around the world, including those suing its NFA-licensed subsidiary in the US, IKON Global Markets.

Source: https://www.financemagnates.com/forex/brokers/judge-tosses-53m-fraud-case-against-ikon-finance-and-hantec-market/

Continue Reading

Finance Magnates

Vitalik Buterin Says Ransom Hackers Behind $5M-Fee ETH Transactions

Avatar

Published

on

Two transactions spotted on the Chinese mining pool Spark Pool have stunned everyone in the Ethereum community over the last two days. While nearly 20,000 ETH worth $5.2 million was paid as the transactions fees, the value transferred was only 350 ETH worth less than $90,000 — and one of them was only 0.55 ETH or $133.

At glance, the crypto community suggested that the sender mistakenly mixed up the fields on the value of the transfer and the fee. Today, however, Ethereum’s Co-Founder Vitalik Buterin and China-based blockchain analytics company PeckShield floated the idea that a yet-to-be-disclosed exchange is being held to ransom by hackers who gained unauthorized access to its wallets.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

Criminals are thought to have captured partial permissions, such as server management or something similar. But since the exchange’s private key has a multi-signature verification, which help protect against theft by requiring multiple private keys to sign each outgoing transaction, they were unbale to send crypto holdings to their own wallets.

So, the unusual transactions that grabbed the community’s attention were carried out by the ransomware gang to blackmail the exchange and force them to send their chunk, otherwise they would continue to burn their assets though paying excessively high transaction fees.

Ethereum’s Co-Founder further explained that “Similar situations could happen in “scorched earth” games, including scorched-earth vaults aka “Moeser-Eyal-Sirer” vaults, as well as scenarios where hackers can slash but not steal staked funds”.

While the story is yet to be confirmed, the human error theory doesn’t make sense any more as if it was true with the first transaction, the second one might invalidate this assumption. In addition, it can easily be noted that wallet address sending the few ethers and paying generous gas price belongs to a crypto whale. The shipper’s wallet had over 21,000 ETH left in the address, worth more than $5 million, even after the $5.2 million transaction fee was paid out.

Further, the sender’s wallet has been very active all the time, showing several transactions almost every minute, which matches operations carried out by a trading venue.

Blackmail campaigns are not uncommon in the crypto space. A few months ago, Binance revealed that a pro-claimed hacker previously demanded 300 BTC from it for “withholding 10,000 photos that bear similarity to Binance KYC data.” After he refused to give the team any irrefutable evidence regarding the source of breach, Binance ended conversation, but the hacker then started distributing the KYC data online and to media outlets.

Source: https://www.financemagnates.com/cryptocurrency/news/vitalik-buterin-says-ransom-hackers-behind-5m-fee-eth-transactions/

Continue Reading

Finance Magnates

Estonia Tightens Checks on Crypto Firms, Cancels 500 Licenses

Avatar

Published

on

The Estonian regulators have revoked licenses of 500 cryptocurrency firms, roughly 30 percent of total approved providers, as it continues to tighten its grips on risky activities.

The move comes as a series of scandals in Europe have undermined trust in authorities’ ability to tackle money laundering.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

Estonia, a Baltic state in north-eastern Europe, came under the spotlight after Danske Bank, Denmark’s biggest lender, was accused of watching $230 billion through a tiny Estonian branch.

Estonia was among the first jurisdictions in Europe to legalize crypto-related activities back in 2017. In less than three years since the country introduced licensing for companies operating in the cryptocurrency industry, the number of licenses issued has surpassed 1400.

The Estonian Financial Intelligence Unit (FIU), the regulator issuing the licenses, said the regulatory crackdown is not meant to curb cryptocurrency industry but rather regulate the field more thoroughly to prevent risks related to money laundering.

Suggested articles

FBS CopyTrade Became the Best Application for Copy Trading in 2020Go to article >>

So far, the FIU dropped the hammer largely on crypto firms that failed to start operations in Estonia within six months of getting a permit, Bloomberg reported, quoting Madis Reimand, who heads the Baltic country’s intelligence unit.

“This is a first step in tidying up the market, allowing us to take care of the most urgent issues by permitting operations only for companies that can be subjected to Estonian supervision and coercive measures,” Reimand added.

The regulator said that authorities in the Baltic country have learned lesson from the banking sector the hard way, and that they must now deal with new international risks, and cryptocurrencies are amongst the most urgent of these.

Furthermore, the Estonian government has passed a bill that tightens the regulation on granting licenses to crypto providers. Among other things, the application processing time was extended from 30 to 90 days, and the license fee has been increased from EUR 345 to EUR 3,300.

Crypto entities registered in Estonia will also need to incorporate in the country or open an Estonian branch of a foreign company.

Source: https://www.financemagnates.com/cryptocurrency/regulation/estonia-tightens-checks-on-crypto-firms-cancels-500-licenses/

Continue Reading

Finance Magnates

Japan Court Upholds Mt. Gox Ex-CEO Conviction for Tampering Records

Avatar

Published

on

Mark Karpeles, the former CEO of the notorious Mt.Gox, has suffered a new blow after Japanese high court threw out his petition and upheld the conviction on charges of manipulating electronic data.

Another Japanese court cleared Karpeles last year of embezzlement and breach of trust charges, but was found guilty of the dubious data charges. In both cases, however, the court handed him a suspended sentence, meaning he wouldn’t have to serve jail time.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

While the French citizen claimed that he was just trying to reduce risks for the exchange’s users, Tokyo’s court said Karpeles had manipulated data to harm his clients, betraying their trust and abusing his engineering skills.

Japanese prosecutors had initially demanded 10 years in prison as they said Karpeles was guilty of mixing his personal finances with Mt.Gox’s assets in order to conceal the exchange’s losses to hackers. The court handed him down a two and a half years jail sentence, but he doesn’t not have to serve this term unless he commits another offence within four years.

Mt. Gox ex-CEO asks US to toss fraud lawsuit

Karpeles also tried to shut down the class action lawsuit against him in the US which was filed by the last remaining plaintiff, Gregory Greene.

Suggested articles

FBS CopyTrade Became the Best Application for Copy Trading in 2020Go to article >>

Karpeles argued the court to dismiss the last remaining fraud charge on the grounds that the ex-Mt. Gox customer has changed the factual basis underlying his claims. Greene voluntarily dismissed two other claims over Karpeles’ handling of the exchange and leaving major security holes that led to future hack attempts.

Gregory Greene filed a complaint on behalf of bitcoin users in a US district court in Philadelphia, accusing Mt. Gox and its CEO Mark Karpeles of negligence and fraud for not protecting the exchange from theft.

Greene, who claimed his own bitcoin holdings were about $25,000, said Mt. Gox failed to provide its users with the level of security protection for which they paid.

However, Karpeles claimed the court lacks jurisdiction and filed a motion asking the judge to dismiss the lawsuit.

Mt. Gox went offline in 2014 in the single biggest setback in the history of Bitcoin after 850,000 bitcoins were stolen in a hacking attack. Under suspicious circumstances, the Japanese exchange claimed it had lost track of about 750,000 bitcoins belonging to customers and another 100,000 of its own, but later said it had found 200,000 bitcoins.

Mt. Gox is now undergoing bankruptcy rehabilitation in Japan, overseen by court-appointed trustee Nobuaki Kobayashi.

Source: https://www.financemagnates.com/cryptocurrency/news/japan-court-upholds-mt-gox-ex-ceo-conviction-for-tampering-records/

Continue Reading
Esports4 days ago

chessbae removed as moderator from Chess.com amid drama

Esports3 days ago

DreamHack Online Open Ft. Fortnite April Edition – How To Register, Format, Dates, Prize Pool & More

Esports4 days ago

Why did Twitch ban the word “obese” from its predictions?

Esports3 days ago

Hikaru Nakamura drops chessbae, apologizes for YouTube strike

Esports5 days ago

Dota 2: Team Nigma Completes Dota 2 Roster With iLTW

Fintech3 days ago

Australia’s Peppermint Innovation signs agreement with the Philippine’s leading micro-financial services provider

Esports4 days ago

Hikaru Nakamura accused of striking Eric Hansen’s YouTube channel

Esports4 days ago

Fortnite: Blatant Cheater Finishes Second In A Solo Cash Cup

Esports4 days ago

Twitch bans Adin Ross after ZIAS uses Homophobic slurs during his stream

Esports5 days ago

LoL: Blaber Named 2021 LCS Spring Split Honda MVP

Blockchain5 days ago

Bitcoin Kurs durchbricht 60.000 USD-Marke

Esports4 days ago

LoL: LCS MSS Lower Bracket Finals Recap- Team Liquid vs TSM

Esports4 days ago

The best way to play Hecarim in League of Legends season 11

Esports5 days ago

LoL: Rekkles Named 2021 LEC Spring Split MVP

Esports4 days ago

Atlanta FaZe advance to the Grand Finals at the Stage 2 Major by defeating Dallas

Esports5 days ago

LoL: LEC 2021 Spring Lower Bracket Finals Recap- G2 Esports vs Rogue

Esports4 days ago

Broodmother reworked, Necronomicon removed in 7.29 update

Esports4 days ago

Ludwig has announced when he’ll end his subathon Twitch stream

Esports3 days ago

Coven and Abomination highlight the new TFT Reckoning Traits

Blockchain5 days ago

Ethereum Preis erreicht neues Allzeithoch bei 2200 USD

Trending