Sumsub, a global full-cycle verification and compliance provider, has completed the integration of its Travel Rule solution with Binance, the crypto exchange platform, through the Global Travel Rule (GTR) Alliance.

Sumsub hopes to support Virtual Asset Service Providers (VASPs), financial institutions, and fintech companies involved in crypto transactions in validating transaction data when working with Binance, via the integration.

The new integrated solution will look to provide access to a large ecosystem of Virtual Asset Service Providers (VASPs) who are participants of Sumsub Travel Rule ecosystem, as well as financial institutions and fintech companies involved in crypto transactions to ensure secure transaction data validation when dealing with Binance entities which in total encompass over 183 million users.

By leveraging Sumsub’s crypto expertise and cutting-edge technologies, the companies are building interoperability to address the so-called sunrise issue, which is the biggest challenge in the crypto compliance space – namely, that the counterparties are not reachable due to the fact that not all VASPs become obliged to adhere to the Travel Rule requirements.

Steve Christie, deputy chief compliance officer at Binance, commented: “Global Travel Rule Alliance is an exciting step forward in solidifying our international compliance efforts.

“We’re particularly enthusiastic about the ability it gives us to consolidate our efforts globally, moving past the challenge of fragmented regional integrations. This move doesn’t just bring us into alignment with FATF’s global standards – it’s about proactively providing our extensive user base with the assurance that their data and transactions are secure. This alliance amplifies the trust, security, and transparency that our users can expect at Binance.”

With a focus on global interoperability, regulatory assurance, and market credibility, the partnership is a giant step towards ensuring streamlined and interconnected cryptocurrency transactions.

Ensuring interoperability in the crypto space

Founded in 2017, Binance has been among Sumsub’s clients since 2021. In March 2023, Sumsub benchmarked the crypto industry by launching its protocol-agnostic Travel Rule solution, offering a full compliance toolkit across the whole customer lifecycle.

Jacob Sever, co-founder and chief innovation officer at Sumsub, explained the importance of the development: “Integrating with Global Travel Rule Alliance is a significant milestone for us, underscoring the importance of collaboration in the crypto space. The integration of the GTR protocol with Sumsub’s Travel Rule solution is a major advancement in ensuring interoperability and addressing the sunrise issue.

“By enabling seamless interaction between members of both ecosystems, this partnership not only enhances the infrastructure of the global crypto ecosystem but also fosters trust both within and outside the industry. Looking forward, Sumsub is empowered to work toward natively integrating other protocols into its Travel Rule solution in the future.”

In October 2023, Sumsub analysed over 800,000 fraud attempts and millions of verification checks within the crypto sector between 2022 and 2023 and surveyed over 100 crypto companies. It released its findings in its ‘State of Verification and Monitoring in the Crypto Industry 2023‘ report. According to its findings, Travel Rule remains one of the two main challenges for crypto companies worldwide, the other one being more advanced fraud methods such as AI-generated deepfakes.

As of April 2023, there were 1,000 active fintechs in Latin America (LatAm) with a vast majority focusing on financial inclusion, tackling the issue of 70 per cent of the population not having access to formal financial services. Em conversa looks to uncover what the future of fintech could look like in the region, following a $2.1billion valuation in 2022.

Here, Ray Merceron, general manager of sales, LAC region at i2c, the global payment processor, breaks down how Latin America’s payment market is evolving, its challenges, as well as i2c’s plans in the region.

Can you provide a deeper insight into i2c and the significance of your position within the company?

i2c’s mission is to responsibly help our clients remove barriers to innovation. We help financial institutions and fintechs of all sizes build a competitive edge in today’s fast-paced world— without compromising on quality or functionality.

Our unified banking and payments platform provides a solid foundation for delivering differentiated offerings that cater to each customer with the flexibility and agility to quickly respond to the unexpected.

As for my role, I spearhead the expansion of our customer base across North America and Latin America. Having been with i2c for seven months as the lead in sales, my background includes two decades at Mastercard, which equips me with a deep understanding of the payments industry. My goal is to leverage this experience to drive growth and foster solid client relationships in our target markets.

Latin America’s payment technology landscape is evolving rapidly. What trends are most impactful in the region?

The paytech scene in Latin America is indeed burgeoning with innovation and growth. We are witnessing a significant surge in contactless and digital payment adoption. Financial institutions on both the issuing and acquiring sides are heavily investing to scale up digital payments. They are rolling out contactless cards and enhancing terminal infrastructure across key Latin American markets.

This shift is propelling an increase in low-value payment transactions, effectively displacing cash from the equation. Another key trend is the rise of P2P payments. Alternative payment methods and e-wallets are revolutionising how people transact, providing near real-time fund transfers. Brazil’s PIX system is a testament to this trend, symbolising the region’s embrace of modern payment solutions.

i2c is known for its proactive role in advancing the payments sector. Could you elaborate on the specific actions i2c is taking to enhance the payments landscape in Latin America?

i2c is deeply committed to revolutionising the payment sector in Latin America through a three-pronged approach:

1. Elevating Customer Experience: We’re enabling our clients to launch highly differentiated products swiftly and efficiently. Our platform’s inherent flexibility allows for quick configuration updates, bypassing the need for extensive technical deployments. This agility ensures that our clients can offer digital and mobile experiences that rival the best globally.
2. Boosting Profits and Mitigating Risks: Innovation is at the forefront of our strategy. We aim to keep our clients at the cutting edge, facilitating quicker routes to revenue and nurturing deeper customer relationships. Our suite includes automated credit decisioning, virtual cards, personalised rewards, real-time coupons, and a comprehensive set of risk management tools, all enhanced by AI technology.
3. Agility and Speed to Market: Our modular platform architecture is a game-changer. It requires no coding and is built from over 100,000 pre-coded building blocks. This allows our clients to quickly configure and optimise their offerings for rapid market entry using our global SaaS platform.

How does the LatAm payments sector compare to that of the rest of the world?

Latin America’s payment sector is swiftly evolving, catching up with global standards through rapid innovation and a proactive approach to digitalisation. Overcoming traditional barriers, such as high unbanked rates and cash reliance, the region has become a hub for fintech growth, often outpacing more developed markets in adopting technologies like mobile wallets and real-time payments. Brazil’s PIX and other initiatives reflect a decisive shift toward immediate payment systems.

Moreover, the region’s approach to digital transformation in payments is often more open and collaborative. Regulatory frameworks, like Mexico’s Fintech Law, are also fostering a supportive environment for innovation, with a clear focus on inclusion and accessibility.

In terms of infrastructure, while there’s still ground to cover compared to some advanced economies where digital payments are nearly ubiquitous, the gap is closing swiftly. We are witnessing significant investments in contactless technology and payment security, propelled by the pandemic’s push for low-touch transactions.

What sets Latin America apart is not just the speed of adoption but the innovation in its approach. There’s a vibrant interplay between fintech startups, traditional banks, and tech giants, all converging to create a unique ecosystem that is tailored to the local needs and culture. As a result, payment solutions are not just imported but crafted within the region, ensuring they are well-suited to LatAm’s diverse markets.

Every market has its peculiarities. What unique challenges does Latin America present in the payments space?

Latin America’s payment sector faces distinct challenges that stem from its unique economic and social fabric. A significant portion of the population remains unbanked or underbanked, which poses a hurdle to financial inclusion and the broader adoption of digital payment methods.

Moreover, as financial institutions, fintechs, and governments work to develop alternative payment methods and e-wallets, interoperability becomes crucial. It’s not just about introducing new technologies but ensuring they work harmoniously to scale the industry and accelerate digital payment adoption across the region.

Looking ahead, what are i2c’s strategic plans for growth and development in the Latin American market

i2c’s roadmap for Latin America is marked by strategic investments in human resources and focused market engagement. We are intent on bolstering our presence by concentrating on pivotal markets and segments where our products and services can have the maximum impact. Our spotlight will be on regions such as the Caribbean, Central America, Mexico, Colombia, Peru and Chile. In terms of segments, we will continue to engage with a diverse clientele, including financial institutions, fintechs, as well as credit unions, ensuring that our solutions cater to the varied needs of the market.

In light of the developments and challenges in the Latin American payment sector, what are your final reflections on the role and future of i2c in the region?

The Latin American market is teeming with potential. Financial institutions and fintechs are at a pivotal point where the need to modernise and upgrade their payment platforms is both a challenge and an opportunity.

i2c is not just offering payment solutions but is paving the way for a more inclusive and technologically advanced financial ecosystem. Our goal is to bridge the gap between the current market state and the future of payments, where every transaction is seamless, secure, and accessible to all segments of society. This vision for a digitally empowered Latin America is what drives i2c’s commitment to the region, and we’re excited about the role we will play in shaping this future.

Orange Middle East & Africa is joining forces with Microsoft, looking to offer Microsoft solutions to small and medium-sized enterprises (SMEs) in 17 countries across the MEA region. Orange is also partnering with Tencent Cloud, the cloud business of tech company Tencent, to improve its super-app ‘Max it’ for businesses and populations in the region.

By collaborating with Microsoft, Orange MEA aims to address the growing needs of SMEs as they undergo digital transformation. Orange’s existing distribution network in the MEA region will now provide SMEs with easy access to the likes of Microsoft 365, Copilot, Azure, and Dynamics 365 while facilitating the upskilling of Microsoft experts within each country.

Orange and Microsoft will also collaborate on training, marketing, and sales support programmes to enable SMEs to adopt and benefit from Microsoft Modern Work solutions.

Through the collaboration, Microsoft and Orange aim to support 15,000 businesses throughout 2024, with an ambition to reach one million SMEs by providing access to technology, tools and support to accelerate adoption. The goal is to promote digital inclusion and enable all economic players in the MEA region to benefit from the advantages of digital transformation.

Jérôme Hénique, CEO of Orange MEA, explained: “This collaboration with Microsoft is a significant step in our commitment to support the digital transformation of African businesses. By combining our network and Microsoft’s solutions, we can provide SMEs with the tools and guidance they need to thrive in the digital economy.”

Energising ‘innovation and digital inclusion in Africa’

Meanwhile, Orange MEA is also planning to adopt Tencent Cloud’s mobility framework and Tencent Cloud Mini Program Platform (TCMPP) solution to create an open platform for Max it to integrate a wide range of mini-apps within its super-app.

Tencent Cloud’s technological expertise will empower Orange MEA in the field of mini-apps to enrich its Max it ecosystem and improve the customer and partner experience, while strengthening its position in the African market.

Fred Sun, general manager of Europe at Tencent Cloud, commented: “This collaboration represents a unique opportunity to energise innovation and digital inclusion in Africa, facilitating the development of use cases and services tailored to local needs while promoting African entrepreneurship. Our experience in supporting Weixin/WeChat, one of the world’s original super-apps, makes us the ideal partner for Orange. We look forward to working with the African enterprises and supporting its ecosystem through Tencent Cloud’s products and solutions in the near future.”

Hénique also emphasised the important milestone this partnership represents in the development of Max it: “This partnership with Tencent Cloud is a key step in our vision to offer innovative and high-value services to our users. Enriching Max it with innovative mini-apps is essential to strengthen the value proposition of Max it, increase the penetration of our super-app among Orange and non-Orange customers, and amplify our social impact.”

Intellect Design Arena Ltd, a cloud-native fintech firm serving banking and insurance clients across the globe, has launched its ‘first principles’ technology suite, ‘eMACH.ai’, for bankers specifically in the Middle East and Africa.

eMACH.ai, an open finance platform, is based on the five principles of configurability, richness, scalability, ease of integration, and composability. eMACH.ai helps banks create their own ‘My Signature Solution’ by harnessing the power of artificial intelligence and optimising operations.

With the new technology suite, Intellect Design Arena aims to keep a bank’s customer in focus. Financial institutions orchestrate their offerings based on these events to ensure customer satisfaction and regulatory compliance. This orchestration is done using a well-defined set of self-sufficient services referred to as Microservices in the tech community.

To provide complete services from approval to credit decisioning to risk compliance to regulatory reporting, corporate banking ecosystems like liquidity, payments, cash management, virtual accounts, SME lending, corporate DDA and trade and supply chain finance, these microservices must collaborate with other services.

These events, microservices and APIs deployed on a native cloud environment, look to deliver a more seamless experience, either through the feature-built UI/UX or ‘Headless’, where financial institutions can create their UI/UX based on their unique requirements. With embedded AI for operational efficiency and smart decisioning, emach.AI is the most comprehensive ‘first principles’ technology addressing the current and future needs of any financial institution.

Supporting banks and FIs across the Middle East and Africa

Arun Jain, CMD and chief architect of Intellect Design Arena Limited, explained the success eMACH.ai has seen so far: “We have secured 29 mandates from global banks who have chosen to use eMACH.ai services.

“We have conducted over 150 eMACH.ai workshops to assist these banks in designing their future strategies around customer opportunities rather than just focusing on technology maximisation and optimisation.”

The eMACH.ai suite will look to support banks and financial institutions in the Middle East and Africa, with plans to:

• Empower banks with 329 microservices, 1,757 APIs and 535 events
• Act as a catalyst for digital and cognitive enterprise transformation by signifying the shift with Intellect’s leadership guiding banks to stay ahead
• Foster financial innovation and redefine the future of financial technology in the Middle East and Africa region, giving the region its global edge
• Help financial institutions to progressively transform technology, leveraging marketplaces like IDC, iKredit360, digital transaction banking, digital wealth management and insurance

Cboe Digital has announced the launch date of Bitcoin (BTC) and Ether (ETH) margin futures trading – Jan. 11, 2024. The regulated crypto-native exchange and clearinghouse will become the first in the United States to offer both spot and leveraged derivatives trading on a single platform, it said in a statement.

Margin trading increases capital efficiency by allowing customers to trade futures without posting full collateral. The ability to carry out spot and derivative trading on the same platform will also increase efficiency.

Cboe Digital president John Palmer said:

“We believe derivatives will foster additional liquidity and hedging opportunities in crypto and represent the next critical step in this market’s continued growth.”

Cboe Digital provides trading for individuals and institutions. Eleven firms, including crypto and traditional financial firms, will support the new capability from its launch. They include B2C2, BlockFills, Cumberland DRW and Talos, among others.

Related: Talos raises $105M to become the latest crypto unicorn valued at $1.3B

Cboe Digital received approval for margin futures trading from the U.S. Commodity Futures Trading Commission (CFTC) in June. At the time, CFTC Commissioner Christy Goldsmith Romero praised Cboe Digital for “operating within the parameters of the traditional futures market structure and regulatory framework.”

Cboe Digital said it plans to expand into physically delivered products eventually, subject to regulatory approval.

Cboe Digital to adopt a Default Liquidity Incentive Program, in effect as early as November 17 pic.twitter.com/NlSC0xH8Ff

— M.B. (@741trey) November 8, 2023

BTC futures open interest has been surging on the Chicago Mercantile Exchange (CME), which is a Cboe Digital competitor. The CME became the second-largest BTC futures exchange after Binance in October, and it hit a record high on Nov. 3.

Meanwhile, the industry is waiting for a decision from the Securities and Exchange Commission decision on 12 applications for BTC spot exchange-traded funds. The eight-day window for approvals began on Nov. 9.

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