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Global Weekly Fintech Update

25 November 2019

26 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

Smart products, artificial intelligence and manufacturers' liability

Insurtech: exploring the challenges and opportunities

Just a click away: the Australian Competition and Consumer Commission takes on Google

Fintech predictions for 2020 from Singapore Fintech Festival: Industry views

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

  • (19 Nov 2019) Basel Committee on Banking Supervision (BCBS) report on open banking and application programming interfaces .| Press release
  • (19 Nov 2019) BCBS chairman, Pablo Hernández de Cos, keynote speech on fintech and the work of the Committee.
  • (15 Nov 2019) International Securities Services Association white paper on the issuance and trading of cryptoassets.

Americas

US:  

  • (21 Nov 2019) Managed Stablecoins are Securities Act of 2019 introduced to Congress by Sylvia Garcia and Lance Gooden. The Bill seeks to clarify that 'managed stablecoins', such as those proposed by Facebook, are securities under the Security Exchange Act of 1934 and thus regulated by the Security and Exchange Commission (SEC). | Press release
  • (20 Nov 2019) Board of Governors of the Federal Reserve System financial stability report in which it highlights, amongst other things, the risks to financial stability posed by 'global stablecoins'.
  • (20 Nov 2019) Commodity Futures Trading Commission (CFTC) Chairman, Heath Tarbert, interview in which he comments on the need to support American innovation and leadership in the digital asset space.
  • (19 Nov 2019) CFTC Chairman, Heath Tarbert, opinion article in which he advocates a flexible principles-based regulatory approach to digital assets.
  • (15 Nov 2019) Treasury's Financial Crimes Enforcement Network (FinCEN) Director, Kenneth Blanco, speech on virtual currencies, in which he states that stablecoin issuers will have to register with FinCEN as money services businesses under the Bank Secrecy Act.
  • (4 Nov 2019) SEC Commissioner, Hester Peirce, speech at the 51st Annual Institute on Securities Regulation in New York in which she expresses concern that the SEC's lack of a workable regulatory framework for cryptoassets has hindered innovation and growth by overreliance on enforcement actions and (fact-specific) no-action letters that, in her view, collectively fail to delineate a clear path for functioning token networks to emerge without violating the federal securities laws. Commissioner Peirce advocates the creation of a non-exclusive safe-harbor period in which legitimate projects could distribute tokens to a broad set of developers and network users without fearing SEC enforcement action, while focusing enforcement resources on fraudulent actors.

APAC

India:             

  • (19 Nov 2019) Indian Government course providing an introduction to blockchain technology and its applications, which has been added to the state-run learning platform, Swayam.
  • (14 Nov 2019) Government session agenda issued by India's lower house of parliament, which confirms that the draft bill 'Banning of cryptocurrency and regulation of official digital currencies' will not be considered in the winter parliamentary session, as previously reported.

Singapore:

  • (20 Nov 2019) Monetary Authority of Singapore (MAS) consultation on proposals to allow payment token derivatives to be traded on approved exchanges under the Securities and Futures Act | Press release
  • (12 Nov 2019) MAS announced it is developing, in collaboration with industry partners, a fintech research platform intended to connect investors and financial institutions with fintech start-ups | Press release

Europe

Europe:         

  • (15 Nov 2019) The European Insurance and Occupational Pensions Authority has established a consultative expert group to assist it in the development of digital ethics principles in insurance | Press release

UK:

  • (18 Nov 2019) UK Jurisdiction Taskforce (UKJT, a taskforce of the Law Society’s LawTech Delivery Panel) legal statement on the legal status of cryptoassets and smart contracts under English law | Press release

Ukraine:       

 

 

CLIFFORD CHANCE EVENTS       

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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