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Global Weekly Fintech Update

20 January 2020

20 January 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

Clifford Chance briefing – SEC outlines investment manager examination priorities for 2020including emerging risk areas, such as robo-advice, digital assets and cybersecurity.

(15 Jan 2020) Talking Tech article – PSD2-innovation and GDPR-protection: a fintech balancing act? Part 1 | Part 2

(14 Jan 2020) Talking Tech article – Evolution of IP Protection for Artificial Intelligence in France: Could an AI be deemed as an author or creator under IP law?

SPOTLIGHT

Joint Paper: Private international law aspects of smart derivatives contracts utilizing DLT
In this paper, jointly published 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

GLOBAL LEGAL AND REGULATORY UPDATES

International

  • (17 Jan 2020) Organisation for Economic Co-operation and Development (OECD) report on the tokenisation of assets and its potential impact for financial markets. | Report highlights.
  • (16 Jan 2020) Global Financial Innovation Network report on its pilot for businesses wanting to test innovative financial products, services or business models across more than one jurisdiction (the 'cross-border testing' pilot).
  • (13 Jan 2020) OECD has formed a high-level expert group to provide advice on its work on blockchain and other distributed ledger technologies. It will initially focus on issues relevant to the development of an international framework of blockchain policy principles. | Press release.
  • (10 Jan 2020) International Monetary Fund (IMF) paper on the regulation of cryptoassets, which highlights key issues authorities should consider when deciding on a regulatory framework for cryptoassets.
  • (10 Jan 2020) IMF paper on the institutional arrangements for fintech regulation and supervision.
  • (9 Jan 2020) Financial Action Task Force (FATF) summary note​ on the FATF Supervisors' Forum on supervising virtual assets.

Americas

Canada:       

(16 Jan 2020) Canadian Securities Administrators notice, which provides guidance on the application of securities legislation to entities facilitating the trading of cryptoassets.

US:  

  • (14 Jan 2020) Securities and Exchange Commission alert to urge investors to use caution before investing in 'initial exchange offerings' - an alternative to an initial coin offering where a token sale for a company is conducted on a crypto exchange's platform, rather than by the company itself.
  • (10 Jan 2020) California governor, Gavin Newsom's, 2020-21 state budget proposal, which, amongst other things, seeks to restructure the California Department of Business Oversight into the Department of Financial Protection and Innovation, with enhanced authority to regulate a wider array of financial services entities and products, including fintech companies, and to create an Office of Financial Technology Innovation based in San Francisco to study emerging technologies in financial services, including virtual currencies, and engage with California companies developing innovative products. | Press release.
  • (7 Jan 2020) Conference of State Bank Supervisors accountability report​ charting progress made on a series of fintech initiatives. | Press release.

APAC

Japan:           

(14 Jan 2020) Financial Services Agency ordinance (in Japanese), in which it proposes lowering the leverage rate limit of cryptocurrency margin trading.

Malaysia:     

  • (15 Jan 2020) Securities Commission guidelines on digital assets, which set out the requirements under the Capital Markets and Services Act 2007 for issuers seeking to raise funds through digital token offerings and for the registration of platforms that wish to offer initial exchange offering services.

Europe

EU:  

  • (13 Jan 2020) European Banking Authority report​ on trends in the use of big data and advanced analytics in the banking sector, as well as key barriers to its further roll-out. | Press release.

France:          

  • (15 Jan 2020) Bank of France First Deputy Governor, Denis Beau, speech on the benefits and risks of stablecoins.

North Macedonia:    

  • (15 Jan 2020) National Bank of the Republic of North Macedonia Governor, Anita Bezhoska, speech on fintech developments in the country.

CLIFFORD CHANCE EVENTS

London – Launching our joint white paper on smart derivatives contracts (29 Jan 2020):
Clifford Chance, ISDA, R3 and the Singapore Academy of Law are hosting a drinks and canape reception in London to mark the upcoming release of our joint white paper on the private international law aspects of smart derivatives contracts utilising distributed ledger technology (DLT). The reception will be preceded by a panel discussion which will cover the specific private international law issues raised in the white paper that may occur when trading derivatives in a DLT environment, as well as recommendations for clarifying or resolving these issues. The panel will also consider two different examples of derivatives transactions, both of which use ISDA documentation and are built on Corda, an enterprise blockchain and smart contract platform developed by R3. | For more information and to RSVP see the event webpage

London – In conversation with Huw van Steenis (5 Feb 2020, 5:15pm to 6:30pm):
Clifford Chance is delighted to host a conversation with Senior Advisor to the Chief Executive of UBS and former Senior Advisor to the Governor of the Bank of England, Huw van Steenis. Huw's recent review of the future of the financial system for the Bank of England showed that he is one of the leading thinkers in the world on where the financial system goes next – from technology and data regulation to climate change and cyber attacks. Clifford Chance partner Simon Gleeson will be in conversation with Huw, discussing topics such as the future of money and payments, whether the current bank business model is sustainable, how finance might be raised in the future, and how the interaction between the internet giants and the financial system might play out. | For more information and to RSVP please contact our events team.

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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