Emerging Legal Issues in Fintech and Blockchain
Expert-defined terms from the Professional Certificate in Fintech and Blockchain Law course at London School of Planning and Management. Free to read, free to share, paired with a globally recognised certification pathway.
Emerging Legal Issues in Fintech and Blockchain Glossary #
Emerging Legal Issues in Fintech and Blockchain Glossary
AES (Advanced Encryption Standard) #
AES (Advanced Encryption Standard)
- AES is a symmetric encryption algorithm that is widely used to secure sensitiv… #
It provides a high level of security and is approved by the U.S. government for protecting classified information.
AML (Anti #
Money Laundering)
- AML refers to a set of regulations and procedures designed to prevent the ille… #
- AML refers to a set of regulations and procedures designed to prevent the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist financing, appear legitimate.
Blockchain #
Blockchain
- A blockchain is a decentralized and distributed digital ledger that records tr… #
It allows for transparent and secure peer-to-peer transactions without the need for intermediaries.
CBDC (Central Bank Digital Currency) #
CBDC (Central Bank Digital Currency)
- CBDC is a digital form of a country's fiat currency issued and regulated by th… #
It aims to provide a secure and efficient means of payment while reducing the reliance on physical cash.
Compliance #
Compliance
- Compliance refers to the adherence to laws, regulations, and industry standard… #
It involves implementing policies and procedures to ensure legal and ethical conduct.
Cryptocurrency #
Cryptocurrency
- Cryptocurrency is a digital or virtual currency that uses cryptography for sec… #
It enables secure and borderless transactions without the need for traditional financial institutions.
Data Privacy #
Data Privacy
- Data privacy refers to the protection of personal information from unauthorize… #
In Fintech and Blockchain, data privacy regulations aim to safeguard individuals' sensitive data and ensure their rights are respected.
Decentralized Finance (DeFi) #
Decentralized Finance (DeFi)
- DeFi refers to a financial system built on blockchain technology that aims to… #
It allows users to interact directly with one another without the need for traditional financial intermediaries.
Digital Identity #
Digital Identity
- Digital identity refers to the unique representation of an individual in the d… #
It includes personal information, credentials, and attributes that can be used for authentication and authorization purposes.
DLT (Distributed Ledger Technology) #
DLT (Distributed Ledger Technology)
- DLT is a digital system for recording and verifying transactions in a decentra… #
It enables multiple parties to maintain a synchronized and secure ledger of transactions without the need for a central authority.
ESG (Environmental, Social, and Governance) #
ESG (Environmental, Social, and Governance)
- ESG refers to a set of criteria used to evaluate a company's performance in te… #
It is increasingly important in the Fintech and Blockchain industry.
FinCEN (Financial Crimes Enforcement Network) #
FinCEN (Financial Crimes Enforcement Network)
- FinCEN is a bureau of the U #
S. Department of the Treasury responsible for combating money laundering and other financial crimes. It collects and analyzes financial transaction data to detect and prevent illicit activities.
GDPR (General Data Protection Regulation) #
GDPR (General Data Protection Regulation)
- GDPR is a comprehensive data protection regulation in the European Union that… #
It aims to give individuals control over their personal information and ensure its secure handling.
ICO (Initial Coin Offering) #
ICO (Initial Coin Offering)
- ICO is a fundraising method in which a company issues digital tokens or coins… #
It allows startups to raise capital without the need for traditional financial intermediaries.
Insurtech #
Insurtech
- Insurtech refers to the use of technology to improve and streamline processes… #
It includes innovations such as AI, blockchain, and IoT to enhance customer experience and reduce operational costs.
Regulatory Sandbox #
Regulatory Sandbox
- A regulatory sandbox is a controlled environment in which Fintech and Blockcha… #
It allows regulators to monitor and assess new technologies before full-scale implementation.
Smart Contracts #
Smart Contracts
- Smart contracts are self-executing contracts with the terms of the agreement d… #
They automatically enforce and facilitate transactions between parties without the need for intermediaries.
Stablecoin #
Stablecoin
- Stablecoin is a type of cryptocurrency that is pegged to a stable asset, such… #
It aims to provide the benefits of blockchain technology while maintaining price stability.
Sustainable Finance #
Sustainable Finance
- Sustainable finance refers to financial activities that promote environmental,… #
It includes investments in projects and companies that contribute to a more sustainable and equitable future.
Tokenization #
Tokenization
- Tokenization is the process of converting real-world or digital assets into to… #
It allows for fractional ownership, increased liquidity, and efficient transfer of assets through smart contracts.
Two #
Factor Authentication (2FA)
- 2FA is a security process that requires users to provide two different authent… #
It adds an extra layer of protection beyond just a password, such as a code sent to a mobile device.
Virtual Assets #
Virtual Assets
- Virtual assets are digital representations of value that can be traded or tran… #
They include cryptocurrencies, digital tokens, and other forms of blockchain-based assets.
Wormhole Vulnerability #
Wormhole Vulnerability
- The Wormhole vulnerability is a security flaw in Ethereum smart contracts that… #
It highlights the importance of rigorous code auditing and security testing in blockchain applications.