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Global Weekly Fintech Round-up

21 June 2019

21 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

(20 Jun 2019) Clifford Chance briefing - New regulation of Initial Coin (ICOs) in Japan

(19 Jun 2019) Talking Tech article - Cybersecurity and financial sector firms: IOSCO poses 15 sample questions to ask when reviewing your practices

SPOTLIGHT

BBC interview: Facebook's launch of cryptocurrency Libra

Financial Markets Partner, Peter Chapman appeared live on BBC World News’ Global Business this week with host, Matthew Amroliwala, to discuss the unveiling of Facebook’s global digital currency, Libra, which will target 1.7 billion unbanked people around the world.

Please click here for more details and to watch the interview.

GLOBAL LEGAL AND REGULATORY UPDATES
Americas

Brazil:
            

  • (13 Jun 2019) Comissão de Valores Mobiliários communique (in Portuguese) on plans to implement a regulatory sandbox regime for the Brazilian financial, security and capital markets

US:

  • (18 Jun 2019) Facebook launches its cryptocurrency, Libra | Whitepaper | Press release
  • (19 Jun 2019) US Senate Banking Committee schedules hearing for 16 Jul 2019 to examine Facebook's proposals and data privacy considerations | Press release
  • (18 Jun 2019) Senator, Sherrod Brown, statement calling for close scrutiny of the project
  • (18 Jun 2019) Congressman, Patrick McHenry, letter to Congresswoman, Maxine Waters, calling for a hearing on the project
  • (18 Jun 2019) Congresswoman, Maxine Waters, statement calling for a voluntary moratorium on the project until Congress and regulators have had the opportunity to consider it
  • (13 Jun 2019) Nevada Governor signs Senate Bill 161 into law, which implements a regulatory sandbox program through the Department of Business and Industry
  • (10 Jun 2019) Financial Industry Regulatory Authority adjudication on Kyung Soo Kim, a former General Securities Representative and Investment Company and Variable Contracts Products Representative associated with Merrill Lynch, imposing a fine of US$ 5,000 and a one month ban for engaging in outside business activity (cryptocurrency mining) without prior notice to his employer
  • (7 Jun 2019) Nevada Governor signs Senate Bills 162, 163 and 164 into law, which add a definition for 'public blockchain' into the Nevada Revised Statutes, permit businesses to keep and manage corporate records on blockchain and make digital currencies exempt from personal property taxation
 APAC

Australia:     

  • (20 Jun 2019) Reserve Bank of Australia bulletin on cryptocurrencies, in which it argues that bitcoin is unlikely to become a ubiquitous payment method in Australia, and considers how subsequent cryptocurrencies have sought to address some of bitcoin's shortcomings
EUROPE

Iceland:         

  • (14 Jun 2019) Financial Supervisory Authority grants Monerium an e-money operating licence for use throughout the European Economic Area. This is the first time that e-money has been approved for use over blockchain. | Press release (in Icelandic)

Italy:              

  • (15 Jun 2019) Associazione Bancaria Italiana announces that Italian banks will use distributed ledger technology to run reconciliations as of March 2020 | Press release
  • (13 Jun 2019) Amendments to Decree Law 34/2019 (in Italian) on urgent measures for economic growth (the 'Growth Decree') approved by the Joint Committees on Budget and Finance in the Chamber of Deputies. The amendments would require the Ministry of Economy and Finance to launch a sandbox and establish a fintech committee responsible for drafting regulatory proposals and promoting financial innovation.

Malta:           

  • (18 Jun 2019) Malta Financial Services Authority and Financial Intelligence Analysis Unit guidance for financial institutions when opening accounts for fintechs | Press release

UK:

  • (20 Jun 2019) Senior Adviser to the Bank of England (BoE) Governor, Huw van Steenis, report on the outlook for the UK financial system and what it means for the BoE. The report considers, amongst other things, how the Bank could change its infrastructure to promote resilience in finance and to support innovation. | BoE response to the van Steenis report | Review webpage
  •  (20 Jun 2019) Chancellor, Philip Hammond, speech at Mansion House in which he announces, amongst other things, a Treasury-led review of the payments landscape and the UK regulatory framework to ensure they keep pace with fintech innovation
  • (11 Jun 2019) Department of Business, Energy & Industrial Strategy consultation on proposals to require open-banking-style secure data-sharing in the financial services, utilities, communications and rail markets | Press release
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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