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Global Weekly Fintech Update

18 May 2020

18 May 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.

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

CLIFFORD CHANCE PUBLICATIONS AND MATERIALS

Commercial real estate transaction process survey - a proptech survey by Clifford Chance and Concrete VC with a donation made to the charity Oasis UK for each response, to help them provide technology to disadvantaged children

Russia's new law encourages implementation of artificial intelligence technologies in Moscow


SPOTLIGHT

Private international law aspects of smart derivatives contracts utilizing DLT

In this paper, jointly published earlier this year with ISDA, R3 and the Singapore Academy of Law, we consider key distributed ledger technology (DLT) private international law issues for the derivatives market, including whether conflict-of-law concerns could hamper adoption of DLT or blockchain for documenting and trading derivatives.Clifford Chance partner Paul Landless and senior associate Gregory Chartier have adapted a shortened version of the paper for publication this month in the Butterworths Journal of International Banking and Financial Law. Please note this shortened version is currently only available to subscribers of LexisLibrary.

Click here to read the full paper (no registration required).

GLOBAL LEGAL & REGULATORY UPDATES

International

  • (5 May 2020) Financial Action Task Force (FATF) report​ on coronavirus-related money laundering and terrorist financing risks and policy responses, which mentions, among other things, the potential increase in cybercrime and the misuse of virtual assets.

Americas

Canada:       

  • (7 May 2020) The Canadian Council of Insurance Regulators and Insurance Services Regulatory Organizations have announced the launch of an advisory hub, which is intended to allow interested entities to seek clarity on the requirements for providing innovative insurance products or services in Canada | Press release

US:  

  • (13 May 2020) Treasury's Financial Crimes Enforcement Network (FinCEN) Director, Kenneth Blanco, speech on current issues in the virtual currency space, in which he emphasises that non-US virtual currency service providers must register as money service businesses in order to continue operating in the US
  • (5 May 2020) Bill to amend Californian securities law introduced to the Senate, which proposes excluding digital assets that are 'presumptively not an investment contract' from the definition of a security

APAC

China:            

  • (14 May 2020) The People's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission and the Foreign Exchange Bureau, report​ (in Chinese) setting out proposals for the development of a blockchain-based trade finance platform in the Guangdong-Hong Kong-Macao Greater Bay Area. 
  • (11 May 2020) The Hong Kong Insurance Authority and the Chengdu Municipal Financial Regulatory Bureau of the People's Republic of China have signed a memorandum of understanding (in Chinese) to strengthen bilateral collaboration in the development of insurtech, as well in the enhancement of insurance risk management and the nurture and exchange of insurance talent | Press release | See our table of fintech cooperation agreements for more information and a full list of international agreements.

Hong Kong:

  • (11 May 2020) The Hong Kong Insurance Authority and the Chengdu Municipal Financial Regulatory Bureau of the People's Republic of China have signed a memorandum of understanding (in Chinese) to strengthen bilateral collaboration in the development of insurtech, as well in the enhancement of insurance risk management and the nurture and exchange of insurance talent | Press release | See our table of fintech cooperation agreements for more information and a full list of international agreements.

Japan:           

  • (1 May 2020) The self-regulatory Japan Virtual Currency Exchange Association has announced it will publicly share the market rate for several digital assets traded on exchanges within Japan | Reference prices webpage​ (in Japanese) | Press release (in Japanese).

Singapore:   

(13 May 2020) The Monetary Authority of Singapore (MAS), Singapore FinTech Association, AMTD Group and AMTD Foundation have announced the launch of a S$6 million grant intended to support Singapore-based fintech firms during the coronavirus pandemic. The grant complements the existing S$125 million support package announced by MAS on 8 April 2020. | Press release

Europe

EU:  

  • (14 May 2020) The European Institute of Innovation and Technology has launched a crisis response initiative which will provide €60 million worth of funding to firms developing innovative solutions for social and economic recovery following the coronavirus crisis | Press release.
  • (11 May 2020) European Central Bank (ECB) Executive Board Member, Yves Mersch, speech​ on central bank digital currencies and the ECB's current position on them.
  • (8 May 2020) ECB blogpost on initial lessons learnt from the coronavirus pandemic, with an emphasis on the importance of digital and technological evolution in the banking industry.
  • (7 May 2020) EU Commission consultation on a proposed anti-money laundering/counter terrorist financing (AML/CFT) action plan, which, among other things, considers how EU AML/CFT legislation could be expanded to address the implications of technological innovation and the developments in the FATF's standards | Press release​ ​.
  • (7 May 2020) EU Parliament research paper on new developments in digital services, which sets out short, medium and long-term predictions for digital services and provides recommendations for action in preparation for the proposed Digital Services Act.
  • (4 May 2020) European Insurance and Occupational Pensions Authority Chair, Gabriel Bernardino, speech on digital responsibility and the role of actuaries, in which he considers, among other things, the use of big data analytics in the insurance sector.

Poland:         

  • (8 May 2020) Polish Financial Supervision Authority communication​ (in Polish) on its draft position regarding robo-advisory services.

UK:

  • (13 May 2020) Financial Conduct Authority (FCA) updated webpage for requests for innovation hub support, in which it emphasises, in light of the coronavirus outbreak, that the FCA is still available to support innovative firms looking to launch financial services and products and is particularly interested to hear from firms developing solutions to help during the crisis, including those to improve access to credit or funding, distribute financial support and help firms identify scams and vulnerable customers.

CLIFFORD CHANCE EVENTS

- Following the outbreak of coronavirus (Covid-19), we are keeping our global events programme under review. We anticipate that many events will be hosted online. Please continue to sign up for events of interest to ensure you receive news of the latest developments and any changes to location or schedule –

Warsaw Perspectives Series – Digitization on financial markets: from blockchain technology to artificial intelligence – regulatory challenges (17 Jun 2020):
At this seminar we will explore the most recent technological solutions that have appeared in the financial markets and identify the key regulatory changes required to address them. | For more information please contact the Warsaw Perspectives team.

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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