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Elliptic asks the “Big Crypto Questions” to Esma Hodson – Director of Regulatory Compliance for SC Ventures – in this feature which aims to draw insights from leading figures in the crypto industry.
How did you first get involved in crypto/this industry?
I was the head of compliance for the international division of a global bank in Hong Kong, and an opportunity arose in a large blockchain technology company that used my existing experience but applied it in different circumstances. I was fortunate enough to join the team to set up their compliance function and to help build their financial services offering among other wide range of blockchain-based products.
What surprised you the most about it?
I expected it to be just another benefit, like any offer from the bank. I spent – at least – the first three months with each day being constantly blown away by the technology, the possibilities, the compliance and the innovative ways that compliance implementation needed to match the speed and nature of technology, but still deliver the same results.
What do you see as the most challenging in the crypto industry (and what are the opportunities)?
I think the most challenging thing was to combine technological thinking, its immediacy and rhythm with the expectations of the external frame of reference of global regulations, and the requirements and obligations, together with the associated pace of those changes.
If you could change one thing about the industry, what would it be?
In the spirit of change you want to see, I think all industry participants, public and private – involved directly and indirectly, including blockchain analytics, local and global – must continue to work together to eliminate the bad actors from the space and reduce their participation in an inexorable and continuous basis.
Blockchain analytics help to visually demonstrate the real-world damage that bad actors in this industry can cause through illicit transactions in human trafficking, terrorist financing, supporting criminal enterprises and fraudulent activities.
Who do you most admire in this industry?
I recently heard a phrase that resonated with me: “It’s not about doing things better, it’s about doing better things.” I admire anyone in the industry working in any capacity to realize the benefits and opportunities of digital assets and to forge a new path accordingly to support those goals in a way that benefits people, communities and businesses.
Who is your regulatory hero?
Never pick your favorites…
What might someone be surprised to learn about you?
I trained as an archaeologist.
What do you like to do most in your free time?
I like to spend as much time as possible in the physical world both reading and researching historical textiles and fashion.
If you could send one message to regulators/legislators in Asia Pacific, what would it be?
I think the regulators in APAC have been at the forefront of some of the most interesting regulations – particularly around consumer protection. I would be very happy to see the region continue to coordinate its regulatory framework to unify the approach across APAC and further engage with global regimes.
Do you own any cryptocurrency?
I always tell people that one of the best ways to learn how crypto works is to use it. I also tell people that safety is paramount and you should never discuss your possessions with anyone! You can’t catch me that easily, Elliptic!
Esme Hodson is Chief Compliance Officer for SC Ventures – the innovation, fintech investment and venture arm of Standard Chartered Bank.
APAC Regulatory Compliance
