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Global Weekly Fintech Update

18 November 2019

18 November 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

New guidance on Hong Kong licensed corporations' use of cloud services and other external electronic data storage

SPOTLIGHT

Podcast: Talking tech with Misha Glenny

We revisit this Clifford Chance podcast, from a year ago when Misha Glenny, the best-selling author and executive producer of hit TV show McMafia, and Clifford Chance partner Kate Gibbons explore the evolution of cyber-crime, its increasing links with organised crime, and the critical role we all play in cyber defence.

GLOBAL LEGAL AND REGULATORY UPDATES

International

  • (14 Nov 2019) Speech by Mr Agustín Carstens, General Manager of the Bank for International Settlements (BIS), at the 55th SEACEN Governors' Conference and High-level Seminar on "Data and technology: embracing innovation", Singapore on data, technology and policy coordination.
  • (13 Nov 2019) Launch of new BIS Innovation Hub Centre in Singapore by BIS and the Monetary Authority of Singapore. The hub will foster innovation and greater collaboration amongst the global central banking community globally, as well as enhance the understanding of financial technology. | Press release
  • (11 Nov 2019) Appointment of Benoît Cœuré, previously chair of the Committee on Payments and Market Infrastructures and the G7 working group on stablecoins, as head of the BIS Innovation Hub. | Press release

Americas

Canada

  • (12 Nov 2019) Monetary Authority of Singapore cooperation agreement to strengthen collaboration in FinTech, signed with eight members of the Canadian Securities Administrators (CSA).
  • (4 Nov 2019) British Columbia Securities Commission court approval to appoint a receiver to preserve and protect the assets of the Einstein Exchange, which operates an online trading platform offering trading in 19 different cryptocurrencies, following customer complaints about being unable to access their assets and being informed by a lawyer representing the exchange that it planned to imminently shut down. | Press release

US:  

  • (14 Nov 2019) The US Attorney for the District of Massachusetts has charged two men with targeting executives of cryptocurrency companies and others who likely had significant holdings of cryptocurrency. The defendants allegedly conspired to hack into, and take control over, the victims’ cryptocurrency exchange and social media accounts through techniques including “SIM-swapping” of the victims' cell phones in order to steal cryptocurrency or communicate with the victims' friends and family to demand money or cryptocurrency, allegedly stealing (or attempting to steal) over $550,000 in cryptocurrency.
  • (12 Nov 2019) Telegram Group Inc has filed an answer to the recent complaint by the Securities and Exchange Commission (SEC) in relation to an alleged unregistered digital token offering in the US and overseas. | SEC press release for complaint.
  • (6 Nov 2019) US Attorney's Office for the Southern District of New York has charged the president of a purported intergovernmental organization called the World Sports Alliance (WSA) with fraud, for alleged misappropriation of funds related to the WSA's offering of a purported digital currency called IGOBIT.
  •  (5 Nov 2019) The US Federal Trade Commission publishes guide for online social media influencers that lays out the agency’s rules of the road for when and how influencers must disclose sponsorship arrangements in exchange for endorsements when touting brands or products to their followers to avoid violating deceptive advertising laws.
  • (4 Nov 2019) Information Technology & Innovation Foundation report on how to support financial innovation through flexible regulation.
  • (4 Nov 2019) Industry consortium Token Taxonomy Initiative publishes token taxonomy framework. | Press release
  • (31 Oct 2019) Parallel Commodity Futures Trading Commission (CFTC) and SEC enforcement actions against a Switzerland-based trading platform that accepted bitcoin to margin commodity futures and security-based swaps trades by US customers. | Press release

APAC

Singapore:   

  • (13 Nov 2019) Speech by Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), on financial inclusion and innovation at the BIS - World Bank Roundtable on Impact of Technology on Financial Inclusion and Financial Stability, at the Singapore Fintech Festival 2019.
  • (13 Nov 2019) Launch of new BIS Innovation Hub Centre in Singapore by BIS and the MAS. The hub will foster innovation and greater collaboration amongst the global central banking community globally, as well as enhance understanding of financial technology. | Press release
  • (13 Nov 2019) MAS announces that it is working with financial industry partners to create a framework for financial institutions to promote the responsible adoption of Artificial Intelligence and Data Analytics (AIDA). | Press release
  • (12 Nov 2019) MAS and the Banque de France (BDF) announce deepened financial linkages and intention to sign a Memorandum of Understanding (MOU) alongside the French Autorité de contrôle prudentiel et de résolution, to enhance cooperation in cybersecurity, through regular information sharing on cyber incidents and threat intelligence. The BDF also will open an Asian office in Singapore in early 2020. | Press release
  • (12 Nov 2019) MAS cooperation agreement to strengthen collaboration in FinTech, signed with eight members of the Canadian Securities Administrators.
  • (11 Nov 2019) MAS announces it has developed a blockchain-based prototype for multi-currency payments. | Press release

Europe

Europe

  • (13 Nov 2019) Association for Financial Markets in Europe (AFME) recommendations for delivering greater supervisory convergence on the regulation of cryptoassets in Europe. | Press release

France:    

  • (13 Nov 2019) Speech by Denis Beau, First Deputy Governor of the Bank of France (BDF), on financial inclusion in the digital age at the Singapore Fintech Festival 2019.
  • (12 Nov 2019) Monetary Authority of Singapore (MAS) and the BDF announce deepened financial linkages and intention to sign a Memorandum of Understanding (MOU) alongside the French Autorité de contrôle prudentiel et de résolution, to enhance cooperation in cybersecurity, through regular information sharing on cyber incidents and threat intelligence. The BDF also will open an Asian office in Singapore in early 2020. | Press release

Germany:    

  • (7 Nov 2019) Federal Financial Supervisory Authority (BaFin) market survey on derivatives featuring cryptocurrencies as an underlying asset. | Press release​

Switzerland:

  • (11 Nov 2019) SEBA Bank AG launches a range of services in the field of digital assets and cryptocurrencies, in addition to traditional banking.
CLIFFORD CHANCE EVENTS       

London – Breakfast Seminar: Tech as a Virtue – ethical technology as a source of societal strength (20 Nov 2019):
Clifford Chance, in collaboration with the Royal United Services Institute (RUSI) will be hosting an event with Sana Khareghani, Head of the UK Government’s Office for Artificial Intelligence, and Jonathan Kewley, Partner and Tech Group Co-Head, Clifford Chance. In this breakfast briefing Sana and Jonathan will explore the potential of technology as a source of societal strength. | This event is invite only, for more information see the event webpage.

Prague – Breakfast Seminar: Tech law trends and challenges (27 Nov 2019):
Clifford Chance would like to invite you to the second Talking Tech Breakfast Seminar, which will be held on 27 Nov 2019 from 9am. This workshop will focus on trends in information technology law, in particular the challenges that technology poses, its impact on M&A transactions and how competition law and privacy rules respond to these challenges. | For more information and to RSVP see the event webpage

London Perspectives Series: Loan and securitisation transactions - getting smarter? (3/4 Dec 2019): Much buzz surrounds the possibility of using blockchain and smart contracts to replace the role of the middle man and enhance efficiency so reducing the costs in financial transactions. Drawing on our experiences from the US, Europe and London, this session will examine the extent to which lending and securitisation are ripe for this treatment and how far it is already underway. | For more information and to RSVP see the event webpage.

Frankfurt - Legal Revolution 2019 (4-5 Dec 2019) CREATE. DISRUPT. DELIVER. The pace of digital change is rapidly accelerating and has an impact on all sectors, including legal advisory services. On 4 - 5 December, Europe's largest congress and exhibition for legal innovation will take place in Frankfurt, Germany: The Legal ®Evolution 2019. We are proud to be the main sponsor of this trendsetting exhibition and congress for the entire legal department, compliance department and law firm. With us and many other exhibitors, you will learn more about efficient legal processes, legal tech and legal design, and about artificial intelligence, cyber security, data protection, change management and much more. | For more information see the 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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