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Global Weekly Fintech Update

20 July 2020

20 July 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

Enforcement risks for payment services firms raised by FCA's latest "Dear CEO" letter

Caught in a scrape: new investigation reveals risks of facial recognition AI

SPOTLIGHT

Financial regulatory partner Simon Gleeson recently moderated the global retail stablecoins panel at Global Digital Finance's Global Digital Currencies Conference. You can now replay the panel on demand to hear about how a successful global stablecoin like Facebook's Libra might revolutionise the payments industry and the challenges for regulation from Simon and other leading industry experts from Coinbase, Consensys, Bequant and cLabs.

 

GLOBAL LEGAL & REGULATORY UPDATES

International

  • (15 Jul 2020) UNESCO global online consultation on a draft UNESCO Recommendation on the ethics of artificial intelligence (AI). The consultation aims to widen participation in the work of its international group of experts on AI who have recently produced the draft Recommendation, due to be submitted to UNESCO Member States for adoption in November 2021. Responses to the consultation are due by 31 July 2020. | Press release
  • (13 Jul 2020) Committee on Payments and Market Infrastructure report which marks the second of a three-stage process, coordinated by the Financial Stability Board (FSB) at the request of the G20, to develop a roadmap to enhance cross-border payments. | CPMI report webpage | FSB press release
  • (26 Jun 2020) International Monetary Fund working paper (No. 20/104) on retail central bank digital currency.

Americas

US:

  • (30 Jun 2020) Association of Banking Supervisors of the Americas study focusing on the non-prudential analysis of fintech’s regulation and supervision initiatives that are applicable to fintech products and services.

APAC

Singapore:   

  • (Jul 2020) Singapore Academy of Law’s Law Reform Committee report identifying issues that law and policy makers may face in applying ethical principles when developing or reforming policies and laws regarding AI.
  • (14 Jul 2020) Singapore Fintech Association (SFA) and R3 announce strategic partnership, which will provide startups in SFA’s network with access to R3's enterprise blockchain platform Corda through R3’s Venture Development program
  • (13 Jul 2020) Monetary Authority of Singapore and Temasek joint final report for Project Ubin, a collaborative industry project to explore the use of Blockchain and distributed ledger technology for clearing and settlement of payments and securities. The report provides technical insights into the blockchain-based multi-currency payments network prototype that was built and describes how the network could benefit the financial industry and blockchain ecosystem. | Press release

South Korea

  • (16 Jul 2020) Financial Services Commission (FSC) minutes of meeting of a new working group made up of public and private sector experts, tasked with promoting the use of artificial intelligence (AI) technology in financial services. The working group aims to unveil its plans for promoting AI in financial services by the end of 2020.

Europe

European Union:       

  • (16 Jul 2020) European Court of Justice (ECJ) invalidates Decision 2016/1250 on the adequacy of the protection provided by the EU-US Data Protection Shield, a mechanism used by many companies and financial institutions to transfer data between the EU and US, on the basis that it does not appropriately protect the privacy of European citizens in a manner equivalent to the European General Data Protection Regulation. The ECJ confirmed that it considers that Commission Decision 2010/87 on standard contractual clauses (SCCs) for the transfer of personal data to processors established outside the EU is valid, which means companies will now have to assess whether existing SCCs are sufficient to facilitate their transatlantic data transfers.
  • (15 Jul 2020) European Central Securities Depositories Association response to the FSB consultation on stablecoins.

Poland:

  • (16 Jul 2020) Polish Financial Supervision Authority (KNF) consultation on a draft standpoint on the issuance of and trading in cryptoassets, which is intended to ensure a uniform approach to the regulatory issues affecting entities planning to issue and trade in cryptoassets. The draft standpoint contains a discussion of selected legal aspects of the problems associated with the issuance of and trading in tokens on the basis of the most typical cryptoassets. Responses to the consultation are due by 30 July 2020. | Press release    

United Kingdom:

  • (16 Jul 2020) FCA and City Corporation are to collaborate on a digital sandbox pilot to support innovative firms, such as large financial institutions and start-ups, looking to play a key role in the recovery from coronavirus.
 EVENTS

Chamber of Digital Commerce – Parallel (17 July 2020)
Clifford Chance is delighted to be sponsoring the Chamber of Digital Commerce's blockchain digital event series, Parallel taking place online between July and December 2020.  The Clifford Chance team has a digital booth available for attendees to visit throughout. On Friday 17 July, join members of our US fintech team Dave Adams, Jesse Overall and Ola Supel in our virtual booth in the Parallel Expo Hall who will be delighted to answer any questions you have through live Q&A (registration required).

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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