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Melcom Copeland

@MelcomCopeland

Head of Stablecoin Payments | Regulatory-Compliant Crypto in Real Money Gaming | Senior Advisor | Oxford Fintech | Singapore

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xstrategy.sg/
Joined February 2014
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Stablecoin Product Opportunities (Use-Cases) by Vertical Market

Stablecoin Product Opportunities (Use-Cases) by Vertical Market

Article · @MelcomCopeland
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I have seen well-funded programmes with impressive prototypes and no funds-flow map. The prototype is not the risk. The missing map is. Custody is a service. Compliance is an obligation. #Casino #Stablecoin #Payments
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Six gates before a stablecoin deposit should touch a gaming operator's balance sheet: 1. KYC / CDD 2. Wallet screening 3. Travel Rule 4. Address issuance 5. Transaction monitoring 6. Pre-withdrawal re-screening
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"𝙊𝙪𝙧 𝙘𝙪𝙨𝙩𝙤𝙙𝙞𝙖𝙣 𝙝𝙖𝙣𝙙𝙡𝙚𝙨 𝙘𝙤𝙢𝙥𝙡𝙞𝙖𝙣𝙘𝙚." It is the most expensive sentence in any stablecoin payment programme. A regulated digital asset custodian only gives you a second line of controls. Liability, risk, accountability still lie with gaming operators
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"𝙊𝙪𝙧 𝙘𝙪𝙨𝙩𝙤𝙙𝙞𝙖𝙣 𝙝𝙖𝙣𝙙𝙡𝙚𝙨 𝙘𝙤𝙢𝙥𝙡𝙞𝙖𝙣𝙘𝙚." It is the most expensive sentence in any stablecoin payment programme. Every stablecoin programme I have reviewed for a gaming operator contains the same reassuring assumption, usually in a slide - not reality.
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The Financial Action Task Force (FATF) has made clear in their 𝗚𝗮𝗺𝗶𝗻𝗴 𝗮𝗻𝗱 𝗚𝗮𝗺𝗯𝗹𝗶𝗻𝗴 𝗥𝗶𝘀𝗸 𝗥𝗲𝗽𝗼𝗿𝘁 that the payment rail is inside the perimeter. Where is the weakest link in a real money casino and sports betting stablecoin deposit chain today? #Payments
Melcom is the author of the 2023 Masters Dissertation "Stablecoins as a Cross-Chain Payment Method in Web3 and Metaverse Gaming Digital Economies" delivered to Computing Science Faculty at Staffordshire University (UK) Melcom Copeland has more than 25 years experience leading strategic digital solution product design, international business development, and operational team leadership in the real money gaming and cryptocurrency industries. Melcom has led charges in developing and monetising enterprise-level e-commerce marketplaces, high-frequency live sports and virtual sports betting platforms, web3 payments, video game development, and virtual experiences using advanced computerized frameworks. Melcom is accredited with designing several programs in Asia, Europe, Africa and the Middle East.

ALT Melcom is the author of the 2023 Masters Dissertation "Stablecoins as a Cross-Chain Payment Method in Web3 and Metaverse Gaming Digital Economies" delivered to Computing Science Faculty at Staffordshire University (UK) Melcom Copeland has more than 25 years experience leading strategic digital solution product design, international business development, and operational team leadership in the real money gaming and cryptocurrency industries. Melcom has led charges in developing and monetising enterprise-level e-commerce marketplaces, high-frequency live sports and virtual sports betting platforms, web3 payments, video game development, and virtual experiences using advanced computerized frameworks. Melcom is accredited with designing several programs in Asia, Europe, Africa and the Middle East.

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Red flags are not something your monitoring team should discover after the money has landed. They are gates your architecture should enforce before the deposit address is ever revealed. The graphic maps five of the FATF's new gaming and gambling red-flag indicators:
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𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝘁 𝘀𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗰𝗼𝘂𝗹𝗱 𝗳𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹𝗹𝘆 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺 𝗵𝗼𝘄 𝗶𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹 𝗩𝗜𝗣 𝗰𝗹𝗶𝗲𝗻𝘁𝗲𝗹𝗲 𝗺𝗼𝘃𝗲 𝗰𝗮𝗽𝗶𝘁𝗮𝗹 𝗮𝗰𝗿𝗼𝘀𝘀 𝗯𝗼𝗿𝗱𝗲𝗿𝘀.
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𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗶𝗮𝗹 𝗚𝗮𝗺𝗶𝗻𝗴 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝗮𝗿𝗲 𝗴𝗲𝘁𝘁𝗶𝗻𝗴 𝗳𝗮𝘀𝘁𝗲𝗿 ≠ 𝗯𝗲𝘁𝘁𝗲𝗿 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀. The future is 𝘀𝘁𝗮𝗯𝗹𝗲𝗰𝗼𝗶𝗻 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 + 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗯𝘆 𝗱𝗲𝘀𝗶𝗴𝗻. #payment #stablecoins #gaming #compliance #aml
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Stablecoins don’t become truly stable simply because they are 100% backed. For me, the next phase of stablecoin regulation should move beyond “how much is reserved?” to “how resilient is the entire redemption and settlement architecture under stress?” #Payments #Stablecoins
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Stablecoins may have a privacy problem. We keep selling stablecoins on: Faster settlement, Lower costs, 24/7 availability, Cross-border payments. Do institutions want every transaction, balance, counterparty & commercial relationship permanently visible on a public blockchain?
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The next major stablecoin use case may not be online gambling. It could be the casino cage. Think VIP front-money + cross-border settlement, not crypto deposits. A verified VIP’s digital wealth could move through a licensed digital asset provider and become casino liquidity.
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A stablecoin settling a merchant payment is doing the job of a payment instrument. Regulate the economic function, not the technical wrapper. Safeguarding ≠ custody. On-chain finality ≠ legal finality. Most perimeter problems start with one of those two. #Payments #Fintech
Melcom is the author of the 2023 Masters Dissertation "Stablecoins as a Cross-Chain Payment Method in Web3 and Metaverse Gaming Digital Economies" delivered to Computing Science Faculty at Staffordshire University (UK) Melcom Copeland has more than 25 years experience leading strategic digital solution product design, international business development, and operational team leadership in the real money gaming and cryptocurrency industries. Melcom has led charges in developing and monetising enterprise-level e-commerce marketplaces, high-frequency live sports and virtual sports betting platforms, web3 payments, video game development, and virtual experiences using advanced computerized frameworks. Melcom is accredited with designing several programs in Asia, Europe, Africa and the Middle East.

ALT Melcom is the author of the 2023 Masters Dissertation "Stablecoins as a Cross-Chain Payment Method in Web3 and Metaverse Gaming Digital Economies" delivered to Computing Science Faculty at Staffordshire University (UK) Melcom Copeland has more than 25 years experience leading strategic digital solution product design, international business development, and operational team leadership in the real money gaming and cryptocurrency industries. Melcom has led charges in developing and monetising enterprise-level e-commerce marketplaces, high-frequency live sports and virtual sports betting platforms, web3 payments, video game development, and virtual experiences using advanced computerized frameworks. Melcom is accredited with designing several programs in Asia, Europe, Africa and the Middle East.

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In most of finance, a cyber incident is a data-loss problem. In digital assets it's a bearer-instrument problem - a key compromise is an irreversible transfer of client property. Build the framework like the loss is final. Because it is. #CyberRisk #DigitalAssets #Stablecoins
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Supervisors increasingly read distributed ledger data directly - not to replace your filings, but to test them. Your on-chain footprint is a disclosure whether you meant it as one or not. Reconcile what the chain says with what you file. Before someone else does. #Compliance
Melcom is the author of the 2023 Masters Dissertation "Stablecoins as a Cross-Chain Payment Method in Web3 and Metaverse Gaming Digital Economies" delivered to Computing Science Faculty at Staffordshire University (UK) Melcom Copeland has more than 25 years experience leading strategic digital solution product design, international business development, and operational team leadership in the real money gaming and cryptocurrency industries. Melcom has led charges in developing and monetising enterprise-level e-commerce marketplaces, high-frequency live sports and virtual sports betting platforms, web3 payments, video game development, and virtual experiences using advanced computerized frameworks. Melcom is accredited with designing several programs in Asia, Europe, Africa and the Middle East.

ALT Melcom is the author of the 2023 Masters Dissertation "Stablecoins as a Cross-Chain Payment Method in Web3 and Metaverse Gaming Digital Economies" delivered to Computing Science Faculty at Staffordshire University (UK) Melcom Copeland has more than 25 years experience leading strategic digital solution product design, international business development, and operational team leadership in the real money gaming and cryptocurrency industries. Melcom has led charges in developing and monetising enterprise-level e-commerce marketplaces, high-frequency live sports and virtual sports betting platforms, web3 payments, video game development, and virtual experiences using advanced computerized frameworks. Melcom is accredited with designing several programs in Asia, Europe, Africa and the Middle East.

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Cold storage isn't custody. It's one control inside custody. Custody is proving whose asset is whose on any given day, and having that answer survive your insolvency. Pull a reconciliation break from six months ago and follow it to closure. That trail is the control. #Custody
Melcom is the author of the 2023 Masters Dissertation "Stablecoins as a Cross-Chain Payment Method in Web3 and Metaverse Gaming Digital Economies" delivered to Computing Science Faculty at Staffordshire University (UK) Melcom Copeland has more than 25 years experience leading strategic digital solution product design, international business development, and operational team leadership in the real money gaming and cryptocurrency industries. Melcom has led charges in developing and monetising enterprise-level e-commerce marketplaces, high-frequency live sports and virtual sports betting platforms, web3 payments, video game development, and virtual experiences using advanced computerized frameworks. Melcom is accredited with designing several programs in Asia, Europe, Africa and the Middle East.

ALT Melcom is the author of the 2023 Masters Dissertation "Stablecoins as a Cross-Chain Payment Method in Web3 and Metaverse Gaming Digital Economies" delivered to Computing Science Faculty at Staffordshire University (UK) Melcom Copeland has more than 25 years experience leading strategic digital solution product design, international business development, and operational team leadership in the real money gaming and cryptocurrency industries. Melcom has led charges in developing and monetising enterprise-level e-commerce marketplaces, high-frequency live sports and virtual sports betting platforms, web3 payments, video game development, and virtual experiences using advanced computerized frameworks. Melcom is accredited with designing several programs in Asia, Europe, Africa and the Middle East.

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Proportionality is not "we're small, so this doesn't apply." It scales the depth of a control to your scale and risk. It doesn't delete the control. And it cuts both ways: complexity you choose is complexity you have to fund. #Proportionality #RiskBasedSupervision #Compliance
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"We have a low tolerance for operational risk" is a sentence, not an appetite. An appetite converts into limits, KRIs with thresholds below the limit, and an escalation path someone has actually used. Ask for the last breach. The response tells you more than the framework.
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𝗣𝘂𝗿𝗽𝗼𝗿𝘁𝗲𝗱 𝘄𝗵𝗶𝘁𝗲-𝗵𝗮𝘁 𝗵𝗮𝗰𝗸𝗲𝗿𝘀 𝗵𝗮𝘃𝗲 𝘄𝗶𝘁𝗵𝗱𝗿𝗮𝘄𝗻 ~𝟰,𝟬𝟬𝟬 𝗕𝗧𝗖 (~$𝟯𝟮𝟬 𝗺𝗶𝗹𝗹𝗶𝗼𝗻) 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗟𝗶𝗾𝘂𝗶𝗱 𝗡𝗲𝘁𝘄𝗼𝗿𝗸 𝗙𝗲𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝘄𝗮𝗹𝗹𝗲𝘁. bitcoinmagazine.com/news/all…
They Took $320 Million In Bitcoin — Then Left A Note: “We Are Whitehats”

They Took $320 Million In Bitcoin — Then Left A Note: “We Are Whitehats”

Someone drained most of Liquid Network’s bitcoin reserve, then wrote “contact us on chain.” Blockstream replied on-chain. The coins have not moved since.

bitcoinmagazine.com
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Exchange + custody + own-token issuance + prop market making isn't four businesses. It's one very complicated conflict of interest. Vertical integration isn't disqualifying. It just means your conflicts framework has to name your actual conflicts. #CorporateGovernance
Melcom is the author of the 2023 Masters Dissertation "Stablecoins as a Cross-Chain Payment Method in Web3 and Metaverse Gaming Digital Economies" delivered to Computing Science Faculty at Staffordshire University (UK) Melcom Copeland has more than 25 years experience leading strategic digital solution product design, international business development, and operational team leadership in the real money gaming and cryptocurrency industries. Melcom has led charges in developing and monetising enterprise-level e-commerce marketplaces, high-frequency live sports and virtual sports betting platforms, web3 payments, video game development, and virtual experiences using advanced computerized frameworks. Melcom is accredited with designing several programs in Asia, Europe, Africa and the Middle East.

ALT Melcom is the author of the 2023 Masters Dissertation "Stablecoins as a Cross-Chain Payment Method in Web3 and Metaverse Gaming Digital Economies" delivered to Computing Science Faculty at Staffordshire University (UK) Melcom Copeland has more than 25 years experience leading strategic digital solution product design, international business development, and operational team leadership in the real money gaming and cryptocurrency industries. Melcom has led charges in developing and monetising enterprise-level e-commerce marketplaces, high-frequency live sports and virtual sports betting platforms, web3 payments, video game development, and virtual experiences using advanced computerized frameworks. Melcom is accredited with designing several programs in Asia, Europe, Africa and the Middle East.

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The travel rule finding is almost never about the message format. It's counterparty diligence, sunrise-problem policy, data quality, self-hosted wallet treatment, and what you do with incomplete inbound data. Sample the exception queue, not the happy path. #TravelRule #AML
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