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Global Weekly Fintech Update

05 October 2020

05 October 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
SPOTLIGHT

Artificial intelligence and intellectual property – considerations for business

For anyone that missed our recent webinar exploring the relationship between AI and intellectual property (IP), you can now access the recording. In this session a panel of Clifford Chance experts considered the ways in which a typical software licence may not be fit for purpose, issues arising from the exploitation of AI, and the fundamental question of whether AI can create IP rights from a UK and European perspective. 

GLOBAL LEGAL & REGULATORY UPDATES

Americas

The Bahamas:            

  • (25 Sep 2020) The Central Bank of the Bahamas has announced it intends to release its central bank digital currency (the 'sand dollar') on 20 October 2020, following a successful pilot in the regions of Exuma and Abaco. | Press release

Canada:       

  • (15 Sep 2020) Office of the Superintendent of Financial Institutions consultation​ on its draft discussion paper on financial sector resilience in a digital world​. Responses are due by 15 December 2020. | Press release

Mexico:         

  • (Sep 2020) IA2030mx (a multi-stakeholder coalition comprising experts from industry, academia and government bodies) national agenda​ (in Spanish) ​for artificial intelligence, which seeks to establish standards for its development and ethical use in Mexico.

US:  

  • (29 Sep 2020) House of Representatives Committee on Financial Services hearing on the increase in technology firms providing financial services and the need for rules to expand banking regulations to accommodate them. | Memorandum | Video​
  • (25 Sep 2020) Securities and Exchange Commission no action letter​, in which it states it will not penalise any broker-dealer operating an alternative trading system that trades digital asset securities, provided it follows the three step process set out in the letter.
  • (25 Sep 2020) The US Office of Science and Technology and the UK Departments for Business, Energy and Industrial Strategy and Digital, Culture, Media and Sport have signed a declaration agreeing to cooperate and collaborate in the research and development of artificial intelligence | Declaration | See our table of fintech cooperation agreements for more information and a full list of international agreements.
  • (24 Sep 2020) The draft Digital Commodity Exchange Act and Securities Clarity Act were introduced to Congress. The Digital Commodity Exchange Act would put spot commodity cryptoexchanges under the jurisdiction of the Commodity Futures Trading Commission and would provide a procedure for pre-selling digital commodity tokens outside of securities law. The Securities Clarity Act would define a digital token as a commodity, separate from the investment contract arrangement it was originally sold through. | Digital Commodity Exchange Act press release​ | Securities Clarity Act press release

APAC

Australia:     

  • (1 Oct 2020) The Australian Securities and Investments Commission and the Reserve Bank of Australia have set out their expectations of, and recommendations for, ASX as it replaces the Clearing House Electronic Sub-register System (CHESS) with a distributed ledger technology (DLT)-based replacement​. | Press release​
  • (29 Sep 2020) The Government has announced an AUD 800 million digital business plan, which is aimed at supporting economic recovery following the coronavirus pandemic. Among other things, the plan includes AUD 9.6 million to support fintechs to export financial services and attract investment, AUD 6.9 million for blockchain pilots aimed at reducing business compliance costs and AUD 256.6 million to develop a digital identity system. | Press release​

Europe

EU:  

France:          

  • (21 Sep 2020) Autorité de contrôl​e prudentiel et de resolution research paper​ on the role of fintech in small business lending.

Poland:         

  •  (23 Sep 2020) Polish Financial Supervision Authority report​, written in collaboration with the Fintech Poland Foundation and Polish Investment and Trade Agency, which provides guidance for foreign investors regarding the fintech market and regulatory regime in Poland​.

Slovakia:      

  • (21 Sep 2020) National Bank of Slovakia questionnaire (in Slovak) for cryptoasset providers, which seeks to gain an overview of the domestic cryptoasset market | Press release (in Slovak).

Switzerland:

  • (25 Sep 2020) The Federal Council has passed a package of legislative amendments which are intended to encourage the use of distributed ledger technology or DLT and blockchain | Press release (in German) | Legislative proposals webpage (in German)

UK:

  • (30 Sep 2020) UK Finance report​ on the importance of explainable artificial intelligence in financial services, the challenges to achieving it and the potential ways to apply the latest guidance.
  • (28 Sep 2020) Video Q&A session between the Payment System Regulator's Senior Advisor, Richard Feasey, and the Competition and Markets Authority's Head of Open Banking, Bill Roberts, in which they discuss the role of innovation in promoting competition in payments.
  • (25 Sep 2020) The US Office of Science and Technology and the UK Departments for Business, Energy and Industrial Strategy and Digital, Culture, Media and Sport have signed a declaration agreeing to cooperate and collaborate in the research and development of artificial intelligence | Declaration | See our table of fintech cooperation agreements for more information and a full list of international agreements.

Middle East

Israel:

  • (22 Sep 2020)​ Bill​ (in Hebrew) to amend tax law to exempt digital currencies from capital gains taxes. Under current policy, digital currencies are treated as assets and taxed at 25% when converted into fiat currency.
Events

Warsaw Perspectives series – Artificial intelligence and third party liability (21 October 2020):
Work on the implementation of clear and comprehensive principles governing third party liability for artificial intelligence in European countries, which has been ongoing for several years, is reflected in the draft regulation drawn up by the Committee on Legal Affairs of the EU Parliament, the implementation of which was recommended to the EU Commission. During the seminar, we will take a closer look at the proposed legal and regulatory solutions and discuss the significance of their implementation, both for the developers of artificial intelligence and for the entities using it. | Please note this seminar will be delivered in Polish, for more information and to register, please contact the Warsaw Perspectives team

Perspectives series – Security token offerings: a global perspective (5 November 2020):
Security token offerings (STOs) involve the offering or issuance of digital tokens to investors using distributed ledger technology (DLT) or blockchain, as an alternative to traditional debt or equity financing options. As the global market for STOs has developed over the last few years, so have the approaches taken by regulators in different jurisdictions. Our panel will consider how STOs can be successfully undertaken across key global financial centres and the risks and regulatory challenges to be aware of. | For more information and to register, see the registration form

Perspectives series – Accelerating digital transformation: turning compliance, regulation and automation to your advantage (17 November 2020):
Earlier this year, Clifford Chance worked with Forbes on a global survey of 300 senior business executives, which explored their approach and attitudes to tech-driven growth. In this webinar we will discuss some of the trends and issues raised by the report – including ethical tech, Board reskilling, tech regulation, the workforce of the future, and AI and big data – and how important these are in a post-COVID-19 world. Our speakers will look at the impact these issues could have over the next decade, and what businesses need to think about now.| For more information and to register, see the registration form

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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