WikiEXPO Global Expert Interview: The Future of Financial Regulation and Compliance

In the current era of booming financial technology, constantly evolving regulatory environment, and global construction of secure trading defenses, “Seeing Diversity, Trading Safely” - the theme of the WikiEXPO Dubai exhibition on November 27th accurately captures the core concerns of the industry. Faced with the coexistence of challenges and opportunities, WikiGlobal has always kept up with the rapid development of financial technology and the upgrading and innovation of financial security. The Dubai exhibition is about to kick off, and we have timely launched a series of interviews focusing on key areas. The first one is an honor to invite Mr. Braden Perry, an outstanding leader in the industry, to have a deep conversation. This is not only a wonderful opening for WikiEXPO's global expert interviews, but also another important step for us to explore the diversity of financial technology and secure trading practices together.

1. What core viewpoints or innovative ideas will you share in your keynote speech/Panel?

Braden Perry：In my keynote, Ill share several core viewpoints and ideas that are particularly relevant for the fintech and blockchain industries:

The Essential Role of Balanced Regulation: I‘ll emphasize the importance of a regulatory framework that not only protects markets and consumers but also fosters innovation. Through examples from my work at the CFTC, I’ll illustrate how effective regulation can create a foundation for stable growth in emerging technologies.

Challenges of Regulating Decentralized Technologies: I‘ll discuss how decentralized finance (DeFi), blockchain, and cryptocurrencies introduce unique regulatory challenges. These technologies often bypass traditional financial intermediaries, which require a rethinking of conventional regulatory approaches. I’ll explore how agencies like the CFTC are adapting to these shifts and the ongoing debate about creating new frameworks specifically for decentralized platforms.

Collaboration between Regulators and Innovators: I‘ll advocate for open dialogue between fintech innovators and regulatory bodies, highlighting that regulatory bodies are not there to stifle innovation but to ensure that growth happens within safe and transparent structures. I’ll also discuss the CFTCs efforts to engage with fintech firms to create balanced, technology-forward policies.

Future of Regulation in Blockchain and Fintech: I‘ll offer insights on upcoming trends, such as the integration of artificial intelligence in both finance and regulation, and how these advancements raise questions about transparency and accountability. Additionally, I’ll touch on the need for global cooperation in regulatory standards to address cross-border compliance issues that impact multinational fintech and blockchain firms.

1. How do you think your share will inspire or help attendees?

Braden Perry：I believe my insights will inspire attendees by showing that regulation and innovation can coexist—and even thrive together—when approached thoughtfully:

Providing a Path to Responsible Innovation: For many attendees working at the cutting edge of fintech and blockchain, understanding the regulatory landscape is crucial. By sharing my experiences with CFTC enforcement and compliance, I hope to clarify how a well-structured regulatory environment can enable sustainable growth and innovation. This perspective can help businesses see regulation as a tool to build consumer trust and market integrity, rather than as a limitation.

Encouraging Proactive Engagement with Regulators: Attendees will learn the value of proactive engagement with regulatory bodies, which can ultimately lead to more effective and less burdensome regulation. By showing real-world examples of how CFTC collaborates with industry stakeholders, I hope to inspire fintech and blockchain firms to view regulators as partners who can help guide the responsible growth of their industries.

Equipping Firms for Future Compliance Challenges: My talk will provide insights into upcoming regulatory trends, such as the rise of artificial intelligence and the necessity of global regulatory harmonization. By addressing these emerging issues, I aim to prepare attendees for the challenges of tomorrow and offer them a vision of how to integrate compliance into their innovation strategies from the outset.

1. The size and liquidity of the global foreign exchange market pose regulatory challenges: As the world's largest and most liquid financial market, how does the size and liquidity of the foreign exchange market pose unique challenges to regulatory agencies?

Braden Perry：The foreign exchange market's sheer size and high liquidity create unique regulatory challenges. With its 24-hour trading cycle and decentralized nature, it is incredibly challenging for regulators to monitor and mitigate risks in real-time. This scale requires regulatory agencies to leverage sophisticated technology and develop cross-jurisdictional partnerships to track and manage market behavior effectively. Additionally, the high liquidity of this market attracts diverse participants, from large institutions to individual investors, each with varying levels of sophistication. Regulators must balance protecting these different groups while avoiding overly restrictive policies that could stifle legitimate market activities.

1. As the partner of KP: How to assist companies in improving their compliance level?

Braden Perry：At Kennyhertz Perry, we work closely with companies to create tailored compliance frameworks that are proactive, adaptable, and in line with evolving regulatory requirements. Our approach starts with understanding each client‘s unique business model and risk profile. We then develop compliance programs that meet current regulations and are flexible enough to adapt as rules change. By conducting regular training, risk assessments, and audits, we help companies identify and address compliance gaps, reducing their exposure to regulatory actions. A significant focus is also on integrating technology that supports real-time monitoring and reporting, which is crucial for staying ahead in today’s fast-paced environment.

1. As the Arbitrator of NFA & FINRA: Any specific practices and advanced experiences?

Braden Perry：Serving as an arbitrator with both NFA and FINRA has provided me with a unique perspective on resolving complex financial disputes. A key practice I emphasize is neutrality—focusing strictly on the facts and applicable rules to make fair and unbiased decisions. I have found that clear communication with parties involved is essential to help them understand the arbitration process, which often leads to more cooperative outcomes. In cases involving advanced financial products, my experience in regulatory compliance and emerging financial technologies has been invaluable for understanding the nuanced details. It is also crucial to stay current on evolving financial products and practices, which allows for more informed and relevant decision-making.

1. Future regulatory trends and innovations: What do you think is the future trend of regulatory technology in the face of the constantly changing financial market environment? How will regulatory agencies adapt to these changes?

Braden Perry：Regulatory technology, or RegTech, will play an increasingly central role in enabling agencies to keep up with financial markets rapid pace. Future trends will likely focus on AI-driven analytics, blockchain for transparent and secure record-keeping, and machine learning algorithms that can identify patterns of suspicious behavior before they escalate. Regulatory agencies are moving toward adopting these tools, albeit slowly, to improve their monitoring and response capabilities. Additionally, I anticipate a shift toward a more data-driven approach, where agencies use real-time data feeds to better understand and regulate markets. To adapt effectively, agencies will need to form public-private partnerships that provide insight into emerging trends and enable faster response times.

1. Investor education and protection: What measures do regulatory agencies take to enhance investors' awareness and prevention capabilities of market risks?

Braden Perry：Investor education is one of regulatory agencies' most effective tools to protect market participants. Agencies often implement initiatives that educate investors on common risks, such as those associated with leveraged products or cryptocurrency trading. Agencies can reach a broader audience by providing resources on their websites, conducting public workshops, and using social media campaigns. Additionally, regulators have begun working with financial institutions to promote transparency, so investors have clearer insights into the risks associated with specific products. Programs that teach investors about red flags of potential fraud and scams are also a key focus, helping investors to be proactive in protecting their interests.

1. Regulatory preparation for responding to market crises: What lessons have regulatory agencies learned from past financial crises and how will they apply them to future regulatory practices?

Braden Perry：Past financial crises, particularly the 2008 financial crisis, have taught regulatory agencies the importance of early intervention, transparency, and the need for robust risk management standards. One of the major takeaways has been the value of stress-testing financial institutions to assess their resilience in different economic scenarios. Regulatory agencies have also recognized the need for better data transparency to identify and address systemic risks early. In response to these lessons, regulators now emphasize liquidity requirements and risk disclosure. Moving forward, these lessons will likely lead to enhanced international coordination, as financial markets are global and crises can quickly spread across borders. Agencies are now better prepared to implement rapid responses that stabilize markets and protect investors.

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Mr. Braden Perry has previously served as a senior trial lawyer at the CFTC and is a seasoned expert in regulatory compliance. He has extensive experience in providing consulting services to clients across the United States, specializing in internal investigations, law enforcement actions, regulatory challenges, and corporate transactions, as well as consulting on emerging technologies within complex regulatory frameworks. In this interview, Brendan Perry deeply analyzed the complexity and innovation of foreign exchange market regulation. He pointed out that the delicate balance between protecting investors and promoting market vitality is crucial. Drawing lessons from history, strengthening investor education, and improving transparency and risk management standards are the necessary paths to building a more robust and fair market environment.

As the organizer of WikiEXPO, WikiGlobal is committed to strengthening international exchanges and cooperation through offline exhibitions, actively participating in current issues and projects of international financial regulation, deepening the integration and application of financial technology and regulatory technology, improving regulatory efficiency and accuracy, actively promoting industry self-discipline, encouraging financial institutions to adopt best practices, building a more stable and transparent financial ecosystem, and enhancing trading environment security.

Click here : https://www.wikiexpo.com/Dubai/2024/en/index.html