HYPE • WEBINAR
Five questions to ask your crypto provider
need a tech stack designed for security, segregation of assets, and accurate reconciliation.
driven solution to a trust problem regulators hadn’t addressed yet. For global firms like BCB, compliance isn’t just about following local rules. It’s about anticipating future requirements and building products that meet the highest standards worldwide. Q WITH SO MUCH FOCUS ON TECHNOLOGY AND REGULATION, HOW IMPORTANT ARE SKILLS AND CULTURE IN CRYPTO FIRMS? Chizoba: When I joined from an audit background, I saw how compliance talent was still catching up. That’s changing, but slowly. Building a culture of governance is as important as hiring the right engineers. Valentin: Agreed. From a product perspective, understanding partners’ business models is critical. In crypto, you might work with entities that aren’t even traditional organizations − like DAOs. So we dig deep into how they manage risk, flows, and compliance. Q HOW DOES BCB GROUP STAY AHEAD OF REGULATORY CHANGE AND DEMONSTRATE CREDIBILITY? Chizoba: We take a proactive approach. We engage with regulators, attend industry forums, and consult external experts. Internally, we challenge assumptions through governance forums and scenario planning. When new rules are on the horizon, we map out what needs to change, what can stay, and what requires enhancement. Transparency with regulators is key − we keep
Chizoba Uzowuru (Head of Safeguarding, BCB Group) and Valentin Vincendon (Chief Product Officer, BCB Group) discuss building long-term trust within the decentralised industry. Building trust in crypto with financial soundness and regulation
Beyond technology, people matter. Teams must understand the nuances of crypto versus fiat systems. And while regulation is catching up, the pace of innovation means businesses often need to anticipate risks before rules are written.
1 How do you safeguard client assets?
LESSONS FROM PAST FAILURES
Q REGULATION IS OFTEN SEEN AS A MOVING TARGET IN CRYPTO. WHERE DO THINGS STAND IN THE UK AND EUROPE? Chizoba: From a European perspective, MiCA is live. It sets standards for capital reserves, asset segregation, and record-keeping. These frameworks aim to provide assurance to clients. Unlike traditional investments, there’s no investor compensation scheme in crypto, so regulation is the foundation for trust. Valentin: In the UK and around the world, regulation is a starting point, not the finish line. The most forward-thinking regulators engage with industry to learn and adapt. Sometimes, the industry leads − take The collapse of FTX in 2022 was a watershed moment. It exposed gaps in governance and asset segregation, triggering a wave of scrutiny. In response, the industry introduced proof-of-reserves audits − an innovation that regulators hadn’t yet mandated. This episode underscores a key point: sound practices often start with industry leadership, not regulation. Firms that wait for rules risk falling behind − or worse, failing altogether.
THE CRYPTO INDUSTRY has evolved dramatically over the past 10-15 years. What began as a niche experiment is now a multi-trillion-dollar ecosystem attracting institutional investors and global banks at an extraordinary pace. According to recent reports, over 80% of major financial institutions are exploring blockchain-based solutions. Yet, despite this progress, some skepticism lingers—fueled by high-profile scandals involving unscrupulous providers, bankruptcies due to poor management, and regulatory uncertainty. For businesses operating in this space, building credibility and resilience is essential if institutional and retail adoption are to continue. Chizoba Uzowuru (Head of Safeguarding, BCB Group) and Valentin Vincendon (Chief Product Officer, BCB Group) discuss what makes a crypto firm financially sound, how regulation is evolving, and what it takes to build long-term trust in a fast-moving and unpredictable industry. WHAT IS FINANCIAL SOUNDNESS AND shaped by extremes—meteoric rises and sharp collapses. When exchanges fail or custodians mismanage assets, the consequences are immediate and severe. Unlike traditional finance, there’s no compensation scheme for investors to fall back on. WHY DOES IT MATTER? Crypto’s reputation has been
For institutional clients, financial soundness is much more than a checkbox. It’s the foundation on which trust is built. Sustainable liquidity, good governance, and transparency are critical. Without them, innovation becomes a liability rather than an advantage. Q CRYPTO HAS ENTERED MAINSTREAM FINANCE, BUT SKEPTICISM PERSISTS. WHAT ARE THE FOUNDATIONS OF FINANCIAL SOUNDNESS IN THIS SECTOR? Chizoba: In many ways, the fundamentals mirror traditional finance. Clients should look for liquidity − how easily can you withdraw funds? − and clarity on how assets are protected.
5 What governance controls ensure resilience? 2 What liquidity measures are in place? 3 Which regulators oversee your operations? 4 How often do you conduct external audits?
Valentin Vincendon Chief Product Officer BCB Group
Governance and culture matter too. Strong internal controls and transparency are essential. The challenge in crypto is that
information isn’t always readily available. That’s why firms need to demonstrate resilience through clear safeguarding measures and robust governance. Bad actors make headlines, so clients should pay attention to reputation and regulatory compliance. Valentin: From a product perspective, the technology layer introduces unique considerations. Crypto runs on blockchain − a decentralized database − so mistakes aren’t easily forgiven. Firms
communication open and document our processes.
Partner due diligence is another priority. We assess financial health, operational practices, and even media reports. It’s not a one-and-done exercise; monitoring is continuous.
Chizoba Uzowuru Head of Safeguarding BCB Group
In crypto, there’s no safety net, so we have to be meticulous.
proof of reserves after the FTX collapse. That was an industry-
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