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Global Weekly Fintech Round-up

19 August 2019

19 August 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

(15 Aug 2019) Clifford Chance briefing – FCA guidance on cryptoassets and the scope of UK regulation

SPOTLIGHT

Cyber attack: regulatory and litigation action in the aftermath

Regulatory and investigations specialist Ellen Lake and litigation specialist Haafiz Suleman discuss key steps for businesses in the aftermath of a cyber attack in this podcast.

GLOBAL LEGAL AND REGULATORY UPDATES

Americas

US:  

  • (13 Aug 2019) Securities and Exchange Commission (SEC) charges Brooklyn individual with fraud following an alleged fraudulent token offering and manipulation regime | Press release
  • (12 Aug 2019) SEC charges token issuer, SimplyVital Health, for selling securities to the public in unregistered initial coin offering. Notably this enforcement action found that the Simple Agreements for Future Tokens (SAFTs) contract itself, rather than the to-be-delivered tokens, was an unregistered securities offering that did not qualify for any exemptions from registration. | Press release
  • (12 Aug 2019) SEC announces that it is further delaying its ruling on the approval of three bitcoin exchange-traded funds (ETFs). The ETFs were proposed by asset managers VanEck SolidX, Bitwise Asset Management, and Wilshire Phoenix. Several companies have proposed bitcoin ETFs in recent years but the SEC is yet to approve any, citing concerns over market manipulation.

APAC

India:     

  • (13 Aug 2019) Reserve Bank of India framework for a regulatory sandbox, which will be used to test various applications of distributed ledger technology (cryptocurrency-related projects are excluded).

New Zealand:            

  • (7 Aug 2019) Inland Revenue binding ruling which permits companies to deduct tax under the pay-as-you-earn income tax scheme on salaries paid in cryptocurrencies. This is the first instance of a country legally backing the use of cryptoassets for paying salaries. | Tax information bulletin (contains summary).

Europe

Germany:  

  • (26 Jul 2019) Federal Government's Scientific Service analysis (in German) of regulatory and other issues raised by Facebook's cryptocurrency project.

Luxembourg:

  • (8 Aug 2019) Bill (no. 7467) (in French) implementing certain provisions of the fifth Anti-Money Laundering Directive (AMLD 5) has been lodged with the Luxembourg Parliament. Amongst other things, the bill extends the scope of the Luxembourg law of 12 November 2004 on the prevention of money laundering and terrorist financing to cover cryptoexchanges and custodian wallet providers.

UK:  

  • (9 Aug 2019) Bank of England working paper on the use of machine learning in finance, in which it considers the 'explainability' of machine learning in a default risk analysis scenario | Summary
CLIFFORD CHANCE EVENTS       

London – CBI Conference Series: Cyber Security (12 Sep 2019)

Clifford Chance is delighted to be hosting CBI's Cyber Security Conference 2019. The conference brings together business leaders and the UK’s foremost industry experts on cyber security. Through in-depth presentations, panel discussions and breakout sessions, our experts will provide the cutting-edge insight and practical solutions to enable you to plan your strategy with confidence. | For more information and to register see the Talking Tech event webpage.

Berlin – Talking Tech Live: Innovation in Business (19 Sep 2019)

Join us in Berlin, Germany at our inaugural Talking Tech Live conference, where we will be talking tech and looking at managing innovation in business. We'll be joined throughout the afternoon by a series of expert panellists and keynote speakers for a series of energetic and insightful talks by tech industry leaders like Airbus, Microsoft, Nokia and Spotify among others. On request, you will also have the unique opportunity to exchange with our tech experts from around the globe in individual one-on-one-meetings. | For more information and to register see the Talking Tech event webpage.

London – Sibos Debrief – Payments Industry Forum (2 Oct 2019)

Clifford Chance will be hosting a payments industry forum event following Sibos 2019, which takes place in London on 23-26 Sep this year. Clifford Chance Partner Simon Gleeson will be moderating The future of banking panel and other members of our market leading payments services team will be at Sibos 2019, with ears open to pick up the very latest market, regulatory and legal issues in the banking, payments and fintech sectors. The following week, on 2 Oct 2019, please join us for a payments industry forum event, where we will update you on what we learned. | For more information and to RSVP see the Talking Tech event webpage.

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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