Banks have three new pieces of legislation to implement in 2018, across the EU. These include Mfid II, GDPR and AML4D. All of these new laws are geared towards making banking more transparent, in one form or another, whether that be through data protection or money laundering. Blockchain allows for an irrefutable digital truth, the synergies for financial institutions are obvious. Here’s how Yotta Laboratories will re-write the rule-book in FinTech.


Traditionally, banks were able to hide the ownership of bonds and other financial transactions. They could have also hidden the ownership or the nature of a deal, they could have placed the paper off the balance sheet or within an SPV (Special Purpose Vehicle). However, they now need to supply their authorities’ with every detail of the transactions they touch. Facilitating transactions through an irrefutable digital record means that transparency can be at the very heart of a bank’s DNA.


Each and every ‘owner’ within a transaction needs to be documented, along with the sale price. Blockchain is the perfect medium for facilitating a digital transaction; proof of transaction is irrefutable.


The source of funds is a key part of the new legislation. Banks need to be whiter than white when it comes to acquiring funds and vetting new customers. Blockchain, at a stroke, makes all transactions totally transparent.


Post the financial crash of 2008 banks, under EU Law, have become far more highly regulated. The EU authorities, for obvious reasons, do not want another ‘house of cards’ banking failure and hence the new regulation. Blockchain could make how money is traded, stored and spent totally transparent. This will reduce the instances of fraud, failure and mismanagement.

Where we are now:

We have a platform in place and conversations have started with small, ‘challenger’ banks to take our ideas to market.