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Global Weekly Fintech Update

02 August 2020

02 August 2020

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.

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CLIFFORD CHANCE PUBLICATIONS AND MATERIALS

Coronavirus: The US legal framework supporting the validity of electronic signatures

European Data Protection Board issues initial guidance for cross-border data transfers in wake of Schrems II judgment

Cybersecurity in Europe: what distinguishes a successful cybersecurity strategy?

Data breach reporting obligation added to Japanese data law: Amendments to the Protection of Personal Information Act of Japan

SPOTLIGHT

Luxembourg bill of law proposes recognition of DLT for the issuance of dematerialised securities

The latest part of Luxembourg's modernisation of its legal framework for finance transactions sees a new bill submitted to the Luxembourg Parliament which aims to modernise the existing framework for dematerialised securities. The bill would expressly permit the use of secure electronic recording systems (including DLT) for dematerialised securities, both at issuance or upon conversion from another form of security. Read our briefing

GLOBAL LEGAL & REGULATORY UPDATES

International

  • (29 Jul 2020) Letter from the International Swaps and Derivatives Association (ISDA), International Securities Lending Association (ISLA), Association of German Banks, Australian Financial Markets Association, International Capital Market Association, International Islamic Financial Market, UK Finance and London Bullion Market Association to the Financial Stability Board, International Organization of Securities Commissions and the Basel Committee on Banking Supervision, setting out the associations' commitment to working together to facilitate a digital future for financial markets, as well as a series of principles and objectives aimed at promoting the development, distribution and adoption of digital standards within the financial markets.
  • (27 Jul 2020) ISDA and ISLA have agreed to closer collaboration on digital initiatives, including on ISDA's Common Domain Model (CDM), a common digital representation of derivatives trade events and actions, which is intended to improve the way derivatives are managed and to establish a standard foundation for the application of technologies such as distributed ledger technology and blockchain | Press release​
  • (24 Jul 2020) Organisation for Economic Co-operation and Development report​ for the G20 Digital Economy Task Force setting out examples of national artificial intelligence policies.
  • (24 Jul 2020) Bank for International Settlements (BIS) report​ on the impact of COVID-19 ​on the use of digital payments and the expected long-term impact on fintech and financial innovation.
  • (24 Jul 2020) BIS report on addressing gaps in the monitoring of financial innovation in central bank statistics.
  • (22 Jul 2020) International Monetary Fund Financial Counsellor and Director of the Monetary and Capital Markets Department, Tobias Adrian, speech​ on using public-private partnerships for digital payments, particularly central bank digital currencies.

APAC

Australia:     

  • (28 Jul 2020) Treasury Department of New South Wales research paper​ on the state's regulatory framework, in which it states it is considering regulatory reform for blockchain and other emerging technologies.

Hong Kong:

  • (27 Jul 2020) Hong Kong Monetary Authority circular​ requesting authorised institutions to support its upcoming activities aimed at promoting regtech adoption in the Hong Kong banking sector.

Japan:           

  • (22 Jul 2020) The Japan Fair Trade Commission has announced it is launching a study into the impact that algorithms and artificial intelligence will have on competition policies and the digital markets | Press release​ (in Japanese) 

New Zealand:             

  • (27 Jul 2020) Government agency algorithm charter, by which signatories pledge to be consistent, transparent and accountable in their use of algorithms. | Charter webpage.

Philippines:  

  • (29 Jul 2020) Central Bank of the Philippines Governor, Benjamin E. Diokno, press conference, in which he announces that a technical working committee has been established to explore the feasibility and policy implications of issuing a central bank digital currency. 

Europe

EU and Europe:          

  • (30 Jul 2020) Euro Banking Association report summary on digital trust and the banking sector. | Press release
  • (30 Jul 2020) European Consumer Organisation response to the EU Commission's consultation on a new digital finance strategy and fintech action plan for Europe.
  • (23 Jul 2020) EU Commission consultation on its proposals for a regulatory framework for artificial intelligence (AI), which will seek to address the ethical and legal issues AI raises.

France:          

  • (27 Jul 2020) Autorité des marchés financiers (AMF) and the Autorité de contrôle prudentiel et de résolution statement reminding cryptoasset ATM operators that they are required to register with the AMF and set up appropriate governance and anti-money laundering/counter-terrorist financing procedures.

Luxembourg:              

  • (27 Jul 2020) Bill No.7637 (in French) submitted by government, which, among other things, permits the use of secure electronic recording systems (including distributed ledger technology) for dematerialised securities at issuance or upon conversion from another form of security. | Clifford Chance summary

Russia:          

  • (28 Jul 2020) Central Bank of Russia First Deputy Governor, Sergei Shvetsov, speech​ (in Russian) in which he notes that the Bank does not recognise crypto-purchases as investments and argues that neither the government nor financial intermediaries should encourage citizens to buy cryptoassets.

UK:

  • (30 Jul 2020) Information Commissioner's Office revised guidance on artificial intelligence and data protection. | Commissioner's foreword
  • (29 Jul 2020) The Payment Systems Regulator has launched the engagement phase of its new strategy which will focus on innovation and the future of payments | Strategy webpage.
  • (28 Jul 2020) HM Treasury call for evidence​ for its review of the payments landscape in the UK, in which it seeks views on the opportunities and risks posed by, among other things, the Faster Payments system, open banking and innovative payments services.
  • (28 Jul 2020) Joint Money Laundering Steering Group revised guidance​ on anti-money laundering and counter-terrorist financing, which has been amended to add sectoral guidelines for cryptoasset exchange and custodian wallet providers. | Press release
  • (27 Jul 2020) The Department for International Trade has announced its new Tech for Growth programme, which is intended to enhance the role technology can play in expanding access to finance in emerging markets. The programme will be piloted in Africa for its first year. | 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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