Ahmed Naga

Persistence is the key to unlock growth 💹 Dogged determination helps #Revolut remove regulatory roadblock UK regulators finally overcame concerns, to realise their ambitious objective of fintech challenging main street banks hegemony. Revolut’s banking licence application was stalled by a series of setbacks including the departure of senior executives, accounting problems and concerns about its ownership structure. *️⃣ Former head Storonsky’s temperamental and volatile nature didn't help either. Super successor Francesca Carlesi tried to shake off Revolut’s image as a fast-moving, sometimes reckless start-up, focused on growth at all costs, to that of a mature regulated bank, with a more conservative approach towards risk. She sought to improve bank’s compliance culture by taking approval for every new feature launched. *️⃣ The company also addressed concerns that the bulk of its 2021 revenues “may be materially misstated”. A clean audit opinion on its 2023 accounts, published for the first time in two years, was one of the final steps to securing the PRA’s approval. The accounts showed Revolut had swung to pre-tax profit of £438mn in 2023, from a £25mn loss in 2022. *️⃣ It also met a Bank of England demand to simplify its share structure, which in turn prompted a battle with Japanese investor SoftBank. *️⃣ Revolut also stepped up a charm offensive with British politicians, attending a 50 executive Labour party election event with the now prime minister and chancellor, to discuss plans for the economy and regulation. The licence opens multiple opportunities: unlock new growth; challenge UK’s biggest domestic banks especially, in mortgages; international expansion to become a global super-app; and justify its $45bn valuation to complete the sale of $500mn of existing shares. At that market cap, it would rival Barclays as UK’s third-most-valuable bank — just behind HSBC and Lloyds, and ahead of NatWest. Once the restrictions — which include a £50,000 total deposits limit — are lifted Revolut can operate as a bank, meaning each of its 9mn UK customers can protect up to £85,000 of their deposits, in the event of bank failure. But a bank failure is the last thing which we want from Revolut. 🤞 Starting from now, there is no looking back! The fintech was informed that the restrictions will be lifted in an year.

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N26, a Berlin-based banking startup, faced regulatory scrutiny from BaFin, resulting in a cap on new customer signups in 2021. This cap, initially set at 50,000 customers per month and later increased to 60,000, will be lifted on June 1, 2024. N26 incurred a €9.2 million fine for reporting shortcomings in 2022 and has invested €100 million in compliance improvements. The company has added savings accounts, loans, crypto and stock trading, and insurance products to its offerings. N26 reported a €100 million loss in 2023 and expects to achieve monthly profitability in the second half of 2024. For the latest secondary coverage and trading SaxonWeber | ShareWell #secondaries #saxonweber

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German crypto traders are set to experience a game-changer: real-time payments on Bitpanda 🤯 This is.. ..thanks to a groundbreaking partnership with Deutsche Bank. This alliance promises to revolutionize transaction efficiency and security, unlocking unprecedented liquidity for Bitpanda users in Germany. By integrating an API-based account solution, Bitpanda gains access to German IBANs, streamlining fund transfers and bolstering security. Users will enjoy seamless deposits and withdrawals with their German IBANs, ensuring instant fiat settlements via Deutsche Bank. Lukas Enzersdorfer-Konrad, Deputy CEO of Bitpanda, underscores the pivotal role of banking alliances in democratizing crypto access. Bitpanda's decade-long focus on trust, compliance, and security has paved the way for collaborations with financial giants like Raiffeisen Bank International AG, LBBW, and N26. Now, Deutsche Bank joins the ranks, enhancing Bitpanda’s treasury operations and reconciliation processes, leading to robust liquidity across its core markets. This collaboration marks a significant milestone, signaling the maturity of crypto platforms like Bitpanda and the growing integration of traditional banking with the dynamic world of cryptocurrencies. #CryptoRevolution #Bitpanda #DeutscheBank #RealTimePayments #CryptoTrading #Fintech #CryptoAdoption #Blockchain #CryptoInnovation #IBAN #Finance #Cryptocurrency #DigitalAssets #CryptoPartnership #TechInFinance

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Hey folks, can anyone give me a good reason the nonbank FinTechs insist on perpetuating the ridiculous omnibus/bulk/commingled approach instead of, you know, a fully-disclosed customer account that meets or exceeds the AML/KYC norms and UBO transparency we are all happy with? This isn't hard; VARs, resellers, channel partners and the like have been around in pretty much every other industry since there was industry. This isn't risky; it's the opposite of risk and it's pretty easy to mete out the utmost punitive action (y'all can't use our bank anymore, and we're just gonna hand these customers over to the regulators and let them sort you out) if -- nay WHEN -- said nonbank FinTech starts cutting corners to pump KPIs and rub their investors' tummies. This isn't fragile; if a FinTech is worried the partner bank or credit union is going to "steal" their customer, well I think that's what lawyers are for, and a regulated institution probably doesn't need to deal with untangling that over the dismal CLV of a depositor. There's no reason a fully-disclosed account can't exist in a tri-party relationship where everyone wins. - Bank or CU gets to be a headless/white-labeled custodian of a REAL customer account. - FinTech gets to be fancy and pretend they're not a bank. - Consumer gets safety while they pat themselves on the back for sporting a vertical debit card and a slick mobile UX. Although I have opinions on 99 other problems with the nonbank FinTech game, I'll play along and just look at the root cause issue that's tearing through Synapse, Evolve, et al. I do not think this needed to go down this way. Happy to be proven wrong but tell me why, Eddie Tobler Larry Pruss Jeff Ball Office of the Comptroller of the Currency NCUA 💯 Jim Marous Paolo Sironi Samantha Paxson

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Revolut to Launch Standalone Wealth Management App Revolut is spinning out its wealth management offering into a standalone app called Revolut Invest. The move will allow Revolut to attract users outside of its existing bank client base. Revolut counts 45 million users, has 3 million active traders, and 20,000 subscribers to its premium investment account. U.K.-based fintech Revolut unveiled today that it plans to spin out its wealth management offering into a standalone app. The new app, Revolut Invest, will feature capabilities from Revolut’s $9.5 billion (€8.5 billion) wealth management business, as well as additional functionality. At present, Revolut offers its users stock trading as well as a roboadvisor tool. The new app will offer much of the same features: access to 5,000 assets, including U.S. and European stocks, ETFs, commodities, and bonds. The app will also come with new products, such as contracts for difference (CFDs). Revolut Invest will offer the option to upgrade to Revolut’s premium subscription tier called Trading Pro that offers reduced commission fees, increased limits, and analytics. One of the key advantages for Revolut in making its investing services a standalone tool is the ability to attract customers beyond its current user base. New investors using Revolut Invest won’t need to be existing Revolut banking clients, allowing the company to more easily expand its 3 million active traders and its 20,000 Trading Pro subscribers. New Revolut Invest users will also be given the option to add Revolut’s banking services during the onboarding process. Conversely, Revolut’s banking clients will not need to download the new trading app, as they will still be able to conduct their investing activities within Revolut’s banking app. Revolut is currently piloting Revolut Invest in Greece, Denmark, and the Czech Republic. The company is aiming to double the number of investments available in the app in the next three months. To fuel this growth, Revolut is scheduled to launch the investment app in other European Economic Area countries by the end of the year and also revealed plans to launch it in the U.K., U.S., Singapore, and Australia, as it already has the licensing in place in these regions. With more than 45 million retail customers and 500,000 business customers, Revolut supports more than 25 currencies for users in more than 140 regions. The company offers current accounts, savings accounts, and debit cards that feature the ability to pay in multiple currencies. Revolut also has a credit card product in the U.S., Ireland, Lithuania, and Poland. Last month, Revolut’s valuation was billed at $45 billion, cementing its reputation as Europe’s most valuable fintech. Earlier this summer, the company earned its banking license from the U.K. Prudential Regulation Authority (PRA), adding deposit insurance for its users in the region. These two factors place Revolut in a good position to go public; and it is likely...

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Your USDT can be frozen right in your wallet. How is this possible? In 2023, Tether (the issuer of USDT) made an important announcement that shook the crypto community. The company froze 161 addresses under OFAC sanctions and continued close cooperation with regulators worldwide. 🔘 How does the freezing of USDT and USDC work? Despite their popularity, stablecoins USDT and USDC are managed by centralized companies — Tether and Circle. This means they have full control over issuance, transactions, and even freezing funds at specific addresses. This practice isn’t new. The first freezes by Tether date back to 2017, and the number of frozen addresses has increased each year. For example: Tether has already frozen 1,820 addresses with assets totaling $1.27 billion. Circle has frozen 241 addresses with $80 million. (A more modest amount) 🔘 Why are addresses frozen? Sanctions and fraud prevention. Companies comply with regulatory requirements, such as those from OFAC and the U.S. Department of Justice, freezing funds related to criminal activity. Reputation protection. Tether responds to reports of scams or mistakes. In 2020, they reversed a $1 million transaction mistakenly sent by a user. Maintaining relationships with regulators. Companies strive to keep good relations with regulators, especially in the U.S. In 2023, Tether spent around $700,000 on lobbying and holds more U.S. debt securities as reserves for its stablecoin than countries like Australia or Spain. 🔘 Why is this dangerous? While the freezing feature helps protect against fraud and illegal activity, it contradicts the principles of decentralization. Cryptocurrencies were designed to be an independent system, where decisions are made based on strict algorithms, without human intervention. 🔘 How does freezing work technically? It’s important to understand that the assets you see in blockchain explorers (like Etherscan) are not actually stored on addresses. They are merely data broadcast by USDT/USDC smart contracts. If the issuer decides to burn the assets, they simply stop showing up at that address. That’s how the ERC20 standard works. 🔘 What about DAI? DAI from MakerDAO was long considered a decentralized alternative to USDT and USDC. However, the new stablecoin USDS (instead of DAI) from MakerDAO (now SKY) introduces the possibility of freezing funds in smart contracts. While the community will decide on the freeze parameters, this step is driven by inevitable regulatory requirements. This shows how even decentralized projects are forced to adapt to new conditions. 🔘 How to avoid being frozen? Avoid sanctioned addresses. Check your counterparties and the origin of funds through AML services. Use reliable platforms. Buy USDT and USDC on trusted exchanges with good reputations or from exchangers you can trust. 💬 Freezing stablecoins is a reality we have to face. Full decentralization is becoming a utopia.

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Exciting times ahead for the Fintech, New Entrants and the Incumbents..... My two cents: no one knows where competition can come from. The best strategy is to stay as close to the customer as possible and embed yourself into their ecosystem by adding real value and creating win-win-win opportunities (satisfying the Regulator, benefiting the Customer, and Your Business). Understanding competition is important, but spending undue time and energy on analyzing competition, and worse yet, copying competitors, is unlikely to yield long-term results. While change is the only constant and disruption is the biggest change agent, what's not going to change is customers' expectations for seamless experiences at a reasonable cost. Use Artificial Intelligence and Intelligent Automation to: 1) free up human resources from operational and repetitive tasks 2) increase customer facing staff for non-automable tasks 3) gain deeper customer insights and "ACT ON THEM" These will go a long way to not only survive but thrive in a more competitive and dynamic business environment.

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🚨 𝗡𝗲𝘄𝘀 𝗙𝗹𝗮𝘀𝗵: Revolut officialy launched a standalone crypto trading platform, called Revolut X, for UK 🇬🇧 retail customers. “We are excited by the introduction of our new crypto product, and believe this top-tier trading platform will change the game for experienced crypto traders, providing them with a safe and accessible place to trade,” Revolut Head of Crypto Exchange Product Leonid Bashlykov said. “We understand that competitive fees as well as easy on and off ramping are at the heart of what experienced traders want from a crypto platform.” The launch of Revolut X follows the firm’s introduction of Revolut Ramp in March. Through a partnership with MetaMask developer Consensys, users can purchase crypto directly in their Web3 wallets. The rollout marks Revolut’s renewed interest in crypto service offerings following the halt of crypto trading for its UK business clients and the termination of its U.S. crypto services amid a challenging regulatory environment. More info: https://lnkd.in/e-QhpFru Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] 

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I’m not sure whether this is a case of the proverbial tail wagging the dog or just a natural outgrowth/evolution. Either way, and to keep the motif mentioned in earlier writings, the “creep” continues towards general, global acceptability of these “crypto” creatures. That said, I still respectfully maintain that G-7 governmental issuances of CBDCs will be a watershed. Its coming & pronouncements like this from Crypto Council for Innovation, LBBW et al. are very likely tips of what seems to be a surely- &/or slowly- melting iceberg.

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After multiple chats with Anton Golub I figured out might as well give it a try to the whole video format. I've been quite lucky to have been involved in the #crypto ecosystem since 2017 and sharing my experience from the #digitalcustody perspective has been something in my mind for a while. Here's the first instance on my stance around self-custody: just because you can doesn't mean you should. I've known too many friends (technical and not) that have lost serious amount of money with the silliest mistakes ever. The amount of operational security needed is not something for the faint of heart, and not always something people know about. #digitalcustody #selfcustody #blockchain #crypto

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This post could be helpful for fintech founders and product managers to assess the list of features they offer vs their competitors in Germany’s mobile banking app market ✅ German Mobile Banking App Review 2024 - Features Germany, Europe’s largest economy, has emerged as a leading player in the global Fintech landscape. The country’s robust economy, coupled with a strong regulatory framework and a tech-savvy population, has created a fertile ground for Fintech start-ups to thrive.. Visa research showed that 60% of German consumers prefer to use their banking app to keep an overview of their finances, and almost one in three send money via the app at least once a month. ✅ Challenger Banks Offer More Features in Every Category Challenger banks’ feature-rich apps are putting pressure on traditional banks to innovate, though a fully loaded app does not necessarily increase its utility. It is about choosing the right features for your customers, whilst considering the current “standard” and thereby prioritising features for development accordingly. We can see that personalisation features in the challenger apps are rich from customising backgrounds, cards, renaming accounts and delivering tailored insights. Card management, personal financial management (PFM) and transaction features are also way out in front for the challenger apps. ✅ Supporting customers The areas where features have grown most noticeably are help & information features and money management including savings & budgeting functionality. Incumbents could potentially close the feature gap with challengers more quickly by expanding their services into personal financial management. This is an area we look at more closely, including some thought leadership from Tink’s experience around the globe. ✅ Table-stakes expand In assessing app features, we determine the most popular ones supported in the market (p14). We call these the ‘table stakes ’. If a banking app does not have one of these features, then they are in the minority against their competitors ’ apps. The number of table-stakes features has increased to 35, up from 31 in Q1 2023. The expansion of these features has been steadily growing since the studies’ inception. As apps are getting more comprehensive, the emphasis on support features and ease of navigation is becoming more significant. All apps are missing at least one of these table-stake features. For any of the rumoured new banks considering launching here, ensuring these table-stakes are covered will be fundamental to getting traction in an increasingly crowded market. Subscribe for more insights https://lnkd.in/d94JgWBU Source Optima Consultancy #banking #fintech #apps Brice Ali Alex Grant Nafis Monica Lex Theodora

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🚨𝗕𝗥𝗘𝗔𝗞𝗜𝗡𝗚 𝗡𝗘𝗪𝗦: Klarna scores major payment deal with Uber ahead of hotly anticipated IPO. You can now use Klarna to pay for your Uber and Uber Eats in the US, Germany and Sweden. In the U.S., Germany, and Sweden, Klarna will roll out its “Pay Now” option, which lets customers pay off an order instantly in one click, in the Uber and Uber Eats apps. Users will be able to track all their Uber purchases in the Klarna app. The company will also offer an additional payment option for Uber users in Sweden and Germany which allows users to bundle purchases into a single, interest-free payment that gets taken out of their monthly salary. Interestingly, the company isn’t rolling out installment-based buy now, pay later plans, arguably its most popular service offering, on Uber’s platforms — only immediate payments and monthly payments. Sebastian Siemiatkowski, CEO and Co-Founder of Klarna, said in a statement Wednesday that the deal represented a “significant milestone” for the company. More info: https://lnkd.in/e8FqmR_4 Find this helpful? [ 𝗿𝗲𝗽𝗼𝘀𝘁 ] Anything to add about this subject? [ 𝗶𝗻𝘃𝗶𝘁𝗲𝗱 𝘁𝗼 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 ] Nice story, Marcel. Next! [ 𝗹𝗶𝗸𝗲 ] Get the most important FinTech news and analysis in a 5 minute daily briefing you’ll actually look forward to reading. Sign up now: https://lnkd.in/eiQBxdTW

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🇦🇪 Revolut is coming to Dubai! I wrote about what every fintech and bank should know about this $45B giant. Here's what I covered: 🕺 An overview of the Revolut way (Culture at Revolut) 📈 Key takeaways from Revolut’s annual report (Phenomenal growth) 🇦🇪 Revolut’s SuperApp expansion to the Middle East & what this means (Should banks be worried?) 💳 A look at Revolut 30+ current products across personal and business banking (Full list of Revolut products to learn from) Link in comments ⬇️ #fintech #fintechtrends #digitalbanking #neobank #challengerbank #banking #uae #dubai

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Robinhood, Revolut Explore Joining $170 Billion Stablecoin Market Companies from Robinhood to Revolut are considering launching stablecoins, betting that stricter regulations in Europe and elsewhere will finally loosen Tether's grip on the rapidly expanding $170 billion digital-asset sector. Robinhood and Revolut, two of the most valuable fintechs, have both been kicking the tires on issuing their own stablecoins, but the firms could still opt not to proceed, said people with knowledge of the matter. They asked not to be identified discussing confidential information. Upstarts have tried to compete with Tether’s USDT for years, with most having little to show for it. Circulation of the stablecoin — a type of token designed to maintain a constant value — has swelled to almost $120 billion, accounting for more than two-thirds of the market by that measure. Runner-up USDC stands at $36 billion, according to CoinGecko data, and other stablecoins are far smaller. But with the European Union poised to fully adopt wide-ranging crypto rules at the end of this year, Tether faces heightened uncertainty. Under regulations known as MiCA, crypto exchanges operating in the EU may be forced to delist stablecoins from issuers like Tether who don’t have the appropriate permits. Circle Internet Financial Ltd., the issuer of USDC, already has the required EU license. The company said in January that it had confidentially filed for a US initial public offering. Tether Chief Executive Officer Paolo A. has repeatedly expressed concern that EU rules present too many risks if a stablecoin issuer were to face mass redemptions. The company, which doesn’t have an e-money license in the bloc, is working on a “technology-based solution” to serve the EU market, Ardoino said in an emailed statement. Everyone Wants In As more issuers push into the market, the result may be “hyper-fragmentation of stablecoins,” according to Nuri Chang, head of product at BitGo, which announced its own token in September. Different financial apps may run their own stablecoins, and swapping between tokens would become so seamless that end users wouldn’t even notice, he said. Over the years, USDT has been resilient in the face of various challengers. PayPal Holdings Inc. launched a stablecoin last year, seeking to cement its dominance in digital payments. The token’s circulation peaked at just over $1 billion in August but has since dropped some 30%, data from CoinGecko show. Rules governing stablecoins in the EU are already in effect under the first phase of MiCA, which kicked in at the end of June. They require stablecoin issuers to have an electronic-money license in an EU member state and hold up to two-thirds of the assets backing their token at independent banks, among other criteria. An implementation period of up to 18 months for regulation of all other crypto platforms in the EU, from exchanges to funds, will begin at the end of 2024. Source Bloomberg #fintech #stablecoins

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Lookout Square, Dojo and SumUP. The Revolut Terminal in the UK and Ireland is coming. Naturally, the merchant acquisition strategy for them is much easier with their banking services baked into the offering if they can continue to deliver a seamless experience. This also creates a path for other acquiring banks to move towards better merchant facing payment products. Referring vs reselling merchant facing products will be a shift in approach but worth it for most banks when they can capture the deposit relationships. Either way $6 trillion in transaction value exists in the European acquiring market so plenty of opportunity to replace legacy infra with modern in person solutions. Value added and integrated verticalized merchant solutions for the win.

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APP scam trends - Spotlight on the U.K The value of losses to APP scams in the U.K. is expected to increase with an annual compound rate of 10% between 2022 and 2027, but this is forecasted to be dwarfed by the growth in value of real-time payments — and therefore related revenue for banks — during the same period. A quarter of scams in 2023 involved amounts valued at £100 or less, and 54% involved amounts of £500 or less. Working within these limits allows fraudsters to hide their activity among the many hundreds of thousands or millions of genuine, routine purchases and transactions of similar value taking place at any given moment. The scale and velocity of these smaller ticket sizes illustrates why AI and robotic process automation (RPA) solutions are essential tools for monitoring and decision making. Landmark scams legislation brings clarity on key issues The U.K.’s landmark Financial Services and Markets Act came into force in summer 2023, bringing banks, payment service providers (PSPs) and their customers some welcome clarity on key issues related to APP fraud, which caused gross losses of £249 million in the first half of 20224. The Act mandates 400-plus banks and PSPs to reimburse scammed customers, except in exceptional circumstances, for example. In addition, every six months the 12 biggest players must provide data demonstrating how they are reducing fraud. The legislation is coming into force at a time when a steep rise in U.K. inflation has greatly increased the basic costs of living, providing fertile ground for mule account recruiters to flourish. In hard times, usually law-abiding account holders may be tempted to listen to a recruiter’s proposal to make some easy cash. There is also a very real possibility that mandated reimbursement will encourage first-party fraud, whereby the payee suspects an item, offer or investment opportunity is too good to be true, but feels sufficiently protected to take the risk anyway. Collaboration is essential These new business conditions make it even more important for all players to share more information and do so in real time. A key driver is financial. Unlike other fraud types, where merchant chargebacks mitigate some reimbursement costs, APP frauds could prove very expensive for banks and PSPs, thus creating a big incentive to identify and close down the mule accounts that are the principal vehicle for fraudsters. Detection calls for 360-degree oversight of account activity, monitoring money in, as well as money out. Institutions already have systems in place to watch both sides of a transaction in the form of AML and fraud detection; countering APP scams calls for a new mindset that lives within a single solution. 👉 Subscribe for more insights https://lnkd.in/d94JgWBU Source ACI World #fintech #scam #apppayments Brice Ali Alex Grant Nafis Monica Lex Theodora Saleh

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I dislike rules, but I like regulations! Sat down with Rupali Sharma from Z47 (fka Matrix Partners India) to speak about my journey with Revolut, and the lessons I've learned in these past 3 years - what it takes to be an effective CEO, the values I hold dear, to how we approach people and business at Revolut. One key takeaway stands out: regulations are not obstacles, but opportunities. Regulations ensure a level playing field, protect consumers, and foster innovation. By aligning our vision and goals with the regulator's, we've been able to: 1. Build trust with our stakeholders 2. Mitigate risks and avoid costly mistakes 3. Drive growth through compliant and sustainable practices 4. Foster a culture of transparency and accountability At Revolut, we've seen firsthand how this can propel success. Our dedication to thorough due diligence, compliance, and regulatory alignment has been instrumental in our growth. So, let's flip the lens, and start thinking of regulations not as restrictions, but guardians of our industry's integrity. How to do this: 1. Understand the rules of the game before you start playing. 2. Align your vision and goals with the regulatory environment. 3. Conduct thorough due diligence to mitigate risks. 4. Foster a culture of transparency and accountability. Catch me talking about this in detail, along with my take on a range of topics from expansion and profitability, to building a dream team - link in comments.

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