Ethical compliance is a standard that the charity RISE-CVF, has developed. The need for ethical compliance has arisen through the Crypto industry that operates without regulation and even when regulation is established, it is unclear just how far regulation will reach.
Companies such as Apple, Google, Wix and any other company that offers products that Fin-Tech companies are using to launch Crypto technology and platforms, can be considered as Market Entry Gateway Companies (MEGC’s) which simply means consumer accessible fintech. Currently, these gateway companies do little to police what sort of platforms are being developed using their market access, but with so many people now becoming victims to fraudulent apps, websites etc, RISE-CVF has put forward the idea of an industry standard modus operandi called Ethical Compliance.
How will it work?
RISE-CVF has the basic premise but it is up to the big companies to implement the idea into their working environment. To help protect people we want companies now to make sure that any new submissions for apps or web access, is done so with a synopses about what the developer intends to market. At registration stage, any company requiring tech services to bring a fintech product to market then along with all of the other pertinent registration information a new dropdown of market sectors is also now required. In this dropdown will contain a market sector Fintech. If a new developer marks their development as fintech, then it is easy for the big companies to monitor these platforms. If this is checked, then the developer must be made to go through a KYC application stage, as well as sign agreements to have audit certificates placed on their website.
If a company doesn’t check fintech but goes onto create a fintech access development. Then the company is in violation of the updated terms and conditions that each company has incorporated into their onboarding process.
Where there has been a violation, it is likely that the company is fraudulent and has the intention to scam. Tech companies can then remove these platforms.
But how will the big tech companies know if a fintech developer checks another market sector but then brings fintech to the market?
A fair question, and indeed, this is a potential flaw. Here at RISE-CVF we don’t expect that the MEGC’s will have to continuously check every single app, or website to ensure they have checked the correct sector. We understand this will be too numerous and onerous, however, we can check which platforms are generating crypto transactions so the MEGC’s need to implement a further process here to match the transactions to the sector checked at registration stage.
With these simple checks in place, this is what we mean by a company understanding the virtue of being ethically compliant and are then eligible to receive the RISE-CVF charity badge as an ethical compliant company, if they wish to do so.
These procedures are easy to implement, but it is up to the MEGC’s to have the will do it when there is no regulative need. This is why we have labelled it as ethical compliance. It isn’t a statutory required, but to keep consumers safe it is absolutely vital.
Ethical compliance will go a long way to removing market access to scammers. Sure, they will find other ways such as self hosting etc, but, as the criminals adapt so shall we, and now that we have our charity that has continuous dialogue with the people we help. We can now monitor the forever changing landscape of investment and cryptocurrency scams.
If you are interested to learn more about Ethical Compliance or require a consultation please contact us. Our first consultation is free, but future consultations fees will be donated to the charity fund to help victims.