As we look at the remainder of 2025 and beyond, the pace and sophistication of cyber attacks targeting the financial sector show no signs of slowing. In fact, based on research from Check Point’s Q2 Ransomware Report, the financial cybersecurity threat landscape is only intensifying. Gone are the days when the average hacker was a..

The post How Financial Institutions Can Future-Proof Their Security Against a New Breed of Cyber Attackers appeared first on Security Boulevard.

Firms and policymakers must act now to ensure the UK workforce “is equipped to lead the way in digitisation, innovation, and adoption.”

The post UK Government Commissions Skills Review for AI in Finance appeared first on TechRepublic.

Last Updated on October 8, 2025 by Narendra Sahoo

In the era where technology plays a core part in everything, fintech and blockchain have emerged as transformative forces for businesses. They not only reshape the financial landscape but also promise unparalleled transparency, efficiency and security as the world move forward to digital currency. That’s when you know being updated about SOX Compliance in Blockchain & Fintech are important than ever.

As per the latest statistics by DemandSage, there are around 29,955 Fintech startups in the world, in which over 13,100 fintech startups are based in the United States.  This shows how much business are increasingly embracing technology to innovate and address evolving financial needs. It also highlights the global shift towards digital-first solutions, driven by a demand for greater accessibility and efficiency in financial services.

On the other hand, blockchain technology, also known as Distributed Ledger Technology (DLT) is currently valued at approximately USD $8.70 billion in USA and is estimated to grow an impressive USD $619.28 billion by 2034, according to data from Precedence Research.

However, as this digital continues the revolution, businesses embracing these technologies must also prioritize compliance, security, and accountability. This is where SOX (Sarbanes-Oxley) compliance plays an important role. In today’s article we are going to explore the reason SOX Compliance is crucial for fintech and blockchain industry. So, lets get started!

Understanding SOX compliance

The Sarbanes-Oxley Act (SOX), passed in 2002, aims to enhance corporate accountability and transparency in financial reporting. It applies to all publicly traded companies in the U.S. and mandates strict adherence to internal controls, accurate financial reporting, and executive accountability to prevent corporate fraud.

To read more about the SOX you may check the introductory guide to SOX compliance.

The Intersection of SOX and Emerging Technologies

Blockchain technology and fintech solutions disrupt traditional financial systems by offering decentralized and automated alternatives. While these innovations bring significant benefits, they can also obscure transparency and accountability, two principles that SOX aims to uphold. SOX compliance focuses on accurate financial reporting, strong internal controls, and prevention of fraud, aligning with both the potential and risks of emerging technologies.

 Key reasons why SOX compliance matters

1. Ensuring accurate financial reporting

Blockchain technology is often touted for its transparency and immutability. However, errors in smart contracts, incorrect data inputs, or cyberattacks can lead to inaccurate financial records. SOX compliance mandates stringent controls over financial reporting, ensuring that organizations maintain reliable records even when leveraging blockchain.

2. Mitigating risks in decentralized systems

Fintech platforms and blockchain ecosystems often operate without centralized oversight, making it challenging to identify and address fraud or anomalies. SOX’s requirement for management’s assessment of internal controls and independent audits provides a critical layer of oversight, helping organizations address vulnerabilities in decentralized environments.

3. Building stakeholder trust

The trust of investors, customers, and regulators is paramount for fintech and blockchain companies. Adhering to SOX requirements demonstrates a commitment to transparency and accountability, promoting confidence among stakeholders and distinguishing compliant organizations from their competitors.

4. Addressing regulatory scrutiny

As blockchain and fintech solutions gain adoption, regulatory scrutiny is intensifying. SOX compliance ensures that organizations are prepared to meet these demands by maintaining rigorous financial practices and demonstrating accountability in their operations.

5. Adapting to hybrid financial models

Many organizations are integrating traditional financial systems with blockchain-based solutions. This hybrid approach can create gaps in controls and reporting mechanisms. Leveraging blockchain in compliance with SOX helps bridge these gaps by enforcing comprehensive internal controls that adapt to both traditional and innovative systems.

6. Promoting operational efficiency

By enforcing stringent controls and systematic processes, SOX compliance encourages better business practices and operational efficiency. This results in more accurate financial reporting, reduced manual interventions, and streamlined processes, which ultimately support better decision-making and resource allocation.

7. Future proofing against emerging technologies

Blockchain and fintech are continuously evolving, and organizations must adapt to new technologies. SOX compliance offers a flexible framework that can scale and evolve with these changes, ensuring that financial reporting and internal controls remain relevant and effective in the face of new technological challenges and opportunities.

Tips to get SOX compliant for fintech and blockchain companies

1. Understand SOX Requirements

• Familiarize yourself with the key SOX sections, especially Section 302 (corporate responsibility for financial reports) and Section 404 (internal control over financial reporting).
• Identify the specific areas that apply to your company’s financial reporting, internal controls, and auditing processes.

2. Form a Compliance Team

• Assemble an internal team including executives, compliance officers, and IT staff.
• Consider hiring external experts like auditors to guide the process.

3. Assess Current Financial Processes

• Review existing financial systems, processes, and internal controls to identify gaps.
• Document and ensure that these processes are auditable and compliant with SOX.

4. Implement Financial Reporting Systems

• Automate financial reporting to ensure timely, accurate results.
• Regularly conduct internal audits to confirm financial controls are working effectively.

5. Strengthen Data Security

• Implement strong encryption, multi-factor authentication, and role-based access control (RBAC) to secure financial data.
• Ensure regular backups and disaster recovery plans are in place.

6. Create and Document Policies

• Develop formal policies for internal controls, financial reporting, and data handling.
• Train employees on SOX compliance and ensure clear communication about financial responsibilities.

7. Establish Internal Control Framework

• Build a solid internal control framework, focusing on accuracy, completeness, and fraud prevention in financial reporting.
• Regularly test, validate controls and consider third-party validation for independent assurance.

8. Disclose Material Changes in Real-Time

• Develop a process for promptly disclosing any material changes to financial data, ensuring transparency with stakeholders.

9. Prepare for External Audits

• Engage an independent auditor to review your financial processes and internal controls.
• Organize records and ensure a clear audit trail to make the audit process smoother.

10. Monitor and Maintain Compliance

• Continuously monitor financial systems and internal controls to detect errors or fraud.
• Review and update systems regularly to ensure ongoing SOX compliance.

11. Develop a Compliance Culture

• Encourage a company-wide focus on SOX compliance, transparency, and accountability.
• Provide regular training and leadership to instill a culture of compliance.

Conclusion

In the fast-paced era of blockchain and fintech, SOX compliance has evolved from a regulatory necessity to a strategic cornerstone. By driving accurate financial reporting, minimizing risks, and cultivating trust, it sets the stage for lasting growth and innovation. Companies that prioritize compliance and auditing standards don’t just safeguard their operation, but they also position themselves as forward-thinking leaders in the rapidly transforming financial landscape.

The post SOX Compliance and Its Importance in Blockchain & Fintech appeared first on Information Security Consulting Company - VISTA InfoSec.

EXECUTIVE SUMMARY:

The financial sector is a leading target for cyber criminals and cyber criminal attacks. Markedly improving the sector’s cyber security and resilience capabilities are a must. While the sector does have a comparatively high level of cyber security maturity, security gaps invariably persist and threaten to subvert systems.

As Check Point CISO Pete Nicoletti has noted, attackers only need to get it right once in order to catalyze strongly negative, systemic consequences that could send shockwaves throughout companies and lives across the globe.

In this article, discover financial sector trends, challenges and recommendations that can transform how you see and respond to the current cyber threat landscape.

Industry trends

• According to a newly emergent report, 65% of financial services sector organizations have endured cyber attacks.
• The median ransom demand is $2 million. Mean recovery costs have soared to roughly $2.6 million – up from $2.2 million in 2023.
• The size of extreme losses has quadrupled since 2017, to $2.5 billion.

The potential for losses is substantial, especially when multiplied in order to account for downstream effects.

Industry challenges

The majority of financial leaders lack confidence in their organization’s cyber security capabilities, according to the latest research.

Eighty-percent of financial service firm leaders say that they’re unable to lead future planning efforts effectively due to concerns regarding their organization’s abilities to thwart a cyber attack.

There is a significant gap between where financial sector institutions want to be with cyber security and where the industry is right now.

Preparing for disruption

Beyond cyber security, financial sector groups need to concern themselves with business continuity in the event of disruption — which is perhaps more likely than not.

“While cyber incidents will occur, the financial sector needs the capacity to deliver critical business services during these disruptions,” writes the International Monetary Fund.

A major disruption – the financial sector equivalent of the Colonial Pipeline attack – could disable infrastructure, erode confidence in the financial system, or lead to bank runs and market selloffs.

To put the idea into sharper relief, in December of 2023, the Central Bank of Lesotho experienced outages after a cyber attack. While the public did not suffer financial losses, the national payment system could not honor inter-bank transactions for some time.

Industry recommendations

Organizations need innovative approaches to cyber security — approaches that prevent the latest and most sophisticated threats. Approaches that fend off disaster from a distance.

At Check Point, our AI-powered, cloud-delivered cyber security architecture addresses everything — networks, endpoints, cloud environments and mobile devices via a unified approach.

We’ve helped thousands of organizations, like yours, mitigate risks and expand business resilience. Learn more here.

For additional financial services insights, please see CyberTalk.org’s past coverage. Lastly, to receive cyber security thought leadership articles, groundbreaking research and emerging threat analyses each week, subscribe to the CyberTalk.org newsletter.

The post Evolving cyber security in the financial services sector appeared first on CyberTalk.

Innovation never stops. To keep pace with structural market shifts in the wealth management industry, it is essential to continuously introduce new technologies that can radically augment client experiences and support new business models’ viability. However, to fully harness the potential of digital acceleration, new technologies must critically address consumer needs to make wealth management [...]

The post 7 Ways Wealth Management Firms Can Innovate appeared first on Nerds Support, Inc..