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Global Weekly Fintech Round-up

10 June 2019

10 June 2019

Welcome to this week's global fintech round-up, summarising fintech regulatory developments that have happened around the world along with our Clifford Chance fintech publications and upcoming events.

Details of these and previous developments can also be found on our Fintech Topic Guide on the Clifford Chance Financial Markets Toolkit.

Please click here to subscribe to future editions of the round-up.

CLIFFORD CHANCE PUBLICATIONS AND MATERIALS

(6 Jun 2019) Talking Tech article - Outsourcing and operational resilience: Lessons from recent regulatory findings

SPOTLIGHT

 

Fintech in the Middle East

 

Fintech continues to transform the delivery of financial services across the Middle East. This report highlights key fintech trends and developments across 10 MENA jurisdictions.

 

Please click here to view the briefing.

 

GLOBAL LEGAL AND REGULATORY UPDATES
International
  • (6 Jun 2019) Financial Stability Board (FSB) report on the implications of decentralised financial technologies, such as DLT and P2P platforms | Press release
  • (31 May 2019) FSB report delivered to the G20 Finance Ministers and Central Bank Governors on the global work underway to address cryptoasset risk and the potential supervisory and regulatory gaps | Press release​ 
Americas

Brazil:    

  • (30 May 2019) President of the Chamber of Deputies request (in Portuguese) to establish a commission to deliver an opinion on bill 2303/2015 (in Portuguese) which aims to bring cryptocurrencies under the regulation of the Brazilian Central Bank
  • (7 May 2019) Regulatory instruction 1888/2019 (in Portuguese) published in the Official Gazette, which requires that cryptocurrency transactions over R$ 30,000 must be reported to the Brazilian Internal Revenue Service on a monthly basis

US:

  • (4 Jun 2019) Congressman Ted Budd's testimony to the House of Representatives Ways and Means Committee on potential issues with current tax laws on cryptocurrencies, in which he argues that cryptocurrencies should have a de minimis tax exemption
  • (4 Jun 2019) Securities and Exchange Commission charges Kik Interactive, Inc. with conducting a US$ 100 million offering of digital tokens without complying with the registration provisions of the federal securities laws. Kik Interactive had previously made public its so-called Wells Submission, in which it attempted to persuade the agency to not bring charges.| Press release
  • (30 May 2019) Commodity Futures Trading Commission Chairman, J. Christopher Giancarlo, speech on the current state of blockchain technology
 APAC

Japan:

  • (4 Jun 2019) The Bank of Japan and the European Central Bank third report on their joint research project (Project Stella), which was launched in Dec 2016 to study possible uses of DLT for financial market infrastructure. This report considers synchronised cross-border payments. | Executive summary
  • (31 May 2019) A Bill (in Japanese) to amend the Financial Instruments and Exchange Act and the Funds Settlement Act has been passed by the House of Councillors. The Bill is intended to strengthen regulations on cryptocurrencies and is expected to come into force in April 2020. | Progress of the Bill (in Japanese) | JFSA proposal documents (in Japanese) | Clifford Chance summary of the JFSA's initial proposals

Korea:           

  • (3 Jun 2019) Financial Services Commission announces plan to establish a financial big data infrastructure, which is intended to facilitate digital innovation and competition in the financial sector and a level playing field for financial companies and fintech start-ups | Press release

Marshall Islands:           

  • (4 Jun 2019) Minister in Assistance to the President, David Paul, video in which he announces the establishment of the SOV Development Fund, a not-for-profit organisation charged with supporting the Marshallese government in the establishment and maintenance of the 'SOV' (the Marshall Island's proposed digital legal tender | SOV website

 EU:  

  • (4 Jun 2019) European Central Bank and the Bank of Japan third report on their joint research project (Project Stella), which was launched in Dec 2016 to study possible uses of DLT for financial market infrastructure. This report considers synchronised cross-border payments. | Executive summary

France:           

  • (27 May 2019) Ministerial order (in French) published, which amends the General Regulation of the Autorité des marchés financiers (AMF) to introduce provisions related to ICOs in light of the AMF's new responsibilities under the PACTE law (in French)

Germany:           

  • (29 May 2019) President of Deutsche Bundesbank, Jens Weidmann, speech (in German) on payment transactions and securities settlement in the digital age, including discussion of the risks posed by central bank digital currencies
  • (24 May 2019) Federal Ministry of Finance consultation (in German) on a draft implementation act for the fifth Anti-Money Laundering Directive (AMLD 5), which includes virtual wallet providers in the group of obliged entities and classifies the crypto-custody business as a financial service and the crypto-value as a financial instrument under the German Banking Act | Consultation webpage (in German)

Poland:

  • (3 Jun 2019) Polish Financial Supervision Authority and the Centre for Research on the Legal Aspects of Blockchain Technology have signed a cooperation agreement to promote the development of the Polish fintech ecosystem through joint research, projects and support | Press release (in Polish) | See our table of fintech cooperation agreements for more information and a full list of international agreements.

UK:

  • (5 Jun 2019) Financial Conduct Authority (FCA) Director of Innovation, Nick Cook, speech on how data and technology are changing the way the FCA regulates.
  • (4 Jun 2019) FCA policy statement on updated rules for P2P platforms | Press release.
  • (4 Jun 2019) Bank of England Executive Director of UK Deposit Takers Supervision, James Proudman, speech on the governance of artificial intelligence by UK financial firms.
CLIFFORD CHANCE EVENTS

  • London - Security Token Academy Meet-Up (12 Jun 2019): Clifford Chance is a sponsor of the Security Token Academy's inaugural London meet-up. The event will involve a panel discussion focusing on the security token revolution and industry developments, as well as opportunities to network. | For more information and to register see the event webpage
  • Washington - Fintech and the Future of Finance in the Developing World: Emerging Opportunities and Risks (12 Jun 2019): Panel comprising representatives from FINCA, the World Bank, R3 and Clifford Chance will discuss the current state of fintech in the developing world and the opportunities created by new technologies, as well as the obstacles to growth. | For more information see the Talking Tech event webpage
  • London - Ethics Series: The impact of AI on corporate leadership and culture (20 Jun 2019, 5:15pm – 6:30pm): Clifford Chance invites you to attend our next Ethics and Leadership Panel event, organised jointly with the Canary Wharf Multifaith Chaplaincy, in which we will  consider the influence of artificial intelligence on leadership and culture and questions such as: "Is AI dehumanising the workplace? Should AI replace the workforce? Will AI stamp out or encourage diversity? If so, how can leaders use it to good effect?" | For more information contact the Events Team or RSVP here
Additional Information

This publication does not necessarily deal with every important topic nor cover every aspect of the topics with which it deals. It is not designed to provide legal or other advice. Clifford Chance is not responsible for third party content. Please note that English language translations may not be available for some content

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