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Global Weekly Fintech Update

27 July 2020

27 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

Dutch Data Protection Authority shows it's serious: new record-breaking fine imposed for inadequate data subject access procedures

Content moderation and online platforms: an impossible problem?

New investigation reveals risks of biometric data processing for law enforcement purposes

SPOTLIGHT

In the latest Clifford Chance Podcast episode, antitrust and tech specialists Gail Orton, Michel Petite, Katrin Schallenberg, Ashwin van Rooijen and Stavroula Vryna talk us through the latest European proposals to address competition concerns in the digital age. Click here to stream or download the full episode. 

The Clifford Chance Podcast is also available via Apple Podcasts, Acast and Stitcher.

GLOBAL LEGAL & REGULATORY UPDATES

International

  • (23 Jul 2020) The World Stablecoin Association (WSA), a new independent, not-for-profit organisation headquartered in Geneva, has launched. The WSA seeks to unite and support major global stablecoin projects and to advocate for digital currencies. | WSA webpage.
  • (22 Jul 2020) World Federation of Exchanges (WFE) response to the Financial Stability Board's consultation on draft recommendations for the regulation, supervision and oversight of global stablecoins, in which the WFE calls for a global stablecoin and cryptoasset taxonomy.

Americas

Jamaica:       

  • (17 Jul 2020) The Bank of Jamaica has invited interested central bank digital currency (CBDC) providers to apply for the opportunity to develop and test potential CBDC solutions in the Bank's recently established fintech regulatory sandbox. Applications must be submitted by 7 August 2020. | Press release

US:  

  • (22 Jul 2020) Office of the Comptroller of the Currency letter in which it states that all national banks can provide cryptocurrency custody services on behalf of their customers, including by holding their unique cryptographic keys. The letter specifies that the term 'cryptocurrency' is used here to encompass all digital assets, including those that are not broadly used as currencies.
  • (20 Jul 2020) Federal Deposit Insurance Corporation request for information on whether a public/private standard-setting partnership and voluntary certification program should be established to promote the efficient and effective adoption of innovative technologies in financial institutions.
  • (16 Jul 2020) The Commodity Futures Trading Commission's Technology Advisory Committee held a meeting at which it heard presentations on, among other things, distributed ledger technology, CBDCs in the derivatives markets and Bitcoin and stock volatility | Agenda

APAC

China:            

  • (22 Jul 2020) Supreme People's Court of China guidelines for judicial services (in Chinese) in which it lists the strengthening of judicial protection around digital currency ownership as one of its developmental priorities.

Malaysia:     

  • (23 Jul 2020) Securities Commission Malaysia consultation on a proposed regulatory framework for digital asset wallet providers. Expressions of interest are due by 14 August 2020.

Republic of Korea:    

  • (22 Jul 2020) The Bank of Korea has established a digital innovation department which will be responsible for introducing new innovative technologies such as artificial intelligence and blockchain to improve efficiency | Press release (in Korean)
  • (22 Jul 2020) Ministry of Economy and Finance revised tax code​ (in Korean), which introduces a 20% tax rate for any income over 2,500,000 won generated from trading virtual currencies. The code will now be submitted to the National Assembly and, if approved, will come into force on 1 October 2021. 

Singapore:   

  • (21 Jul 2020) Monetary Authority of Singapore consultation on proposals to increase its oversight, including by extending the provisions of the Payment Services Act to include the overseas activities of Singapore-based digital asset service providers. Responses are due by 20 August 2020. | Press release​

Europe

EU:  

  • (20 Jul 2020 The EU Council has adopted at first reading the proposed crowdfunding framework. The proposals will now be submitted for adoption by the EU Parliament before being published in the Official Journal. | Press release | Proposed Regulation​ | Proposed Directive
  • (17 Jul 2020) EU Commission report​ on the feedback received on its draft white paper on artificial intelligence (AI). In light of the responses the Commission intends to submit a regulatory proposal in relation to AI technologies. | Press release
  • (17 Jul 2020) EU Commission assessment list​ for trustworthy AI, which provides guidelines for evaluating whether AI systems or tools are trustworthy and ethical. 
  • (17 Jul 2020) EU Commission responses received to its consultation on a new digital finance strategy/fintech action plan. | Consultation webpage

France:          

  • (20 Jul 2020) The Banque de France has announced the chosen participants for its trial of using central bank digital currencies for the clearing and settlement of tokenised financial assets. | Press release (in French)
  • (16 Jul 2020) The Association for the Development of Digital Assets (Adan), in liaison with the French Association of Financial Markets (AMAFI), the French Association of Securities Professionals (AFTI) and Gide255 report (in French) on security tokens | Press release (in French).

Malta:           

(22 Jul 2020) The Malta Financial Services Authority has launched a fintech regulatory sandbox. | Press release | Sandbox webpage

Romania:     

(15 Jul 2020) Emergency Ordinance No.111 of 1 July 2020 (in Romanian) published in the Official Gazette of Romania. This Ordinance amends and supplements Law No.129/2019 (in Romanian) (adopted on 11 July 2019) which partially transposed the fifth Anti-Money Laundering Directive (AMLD 5) into Romanian law. Law No.129/2019 omitted certain entities from reporting requirements, including cryptocurrency service providers. Ordinance No.111 resolves that omission and, among other things, identifies virtual currency exchanges and digital wallet providers as reporting entities.

Russia:          

  • (21 Jul 2020) Bill on digital financial assets (in Russian) adopted by the State Duma. The Bill defines cryptocurrencies and tokens as digital financial assets which are recognised as property and not a legal means of payment. Unlike earlier iterations, this version of the Bill does not introduce criminal liability, such as fines and prison terms, for the illegal use of cryptocurrencies in Russia.

Spain:            

  • (20 Jul 2020) The Government of Spain has announced that it has established a new advisory council for AI, which will, among other things, provide independent advice and recommendations on measures to be taken in order to ensure the safe and ethical use of AI in Spain. | Press release (in Spanish)

UK:

  • (23 Jul 2020) City of London Corporation, Innovate Finance and EY report, which considers what can be learnt from the practices of comparable international hubs to encourage evolution in the UK fintech sector.
  • (21 Jul 2020) Government collection of various existing ethical principles for data and AI, developed by government and public sector bodies in the UK and around the world.
  • (20 Jul 2020) HM Treasury consultation on proposals to expand the perimeter of the financial promotions regime to include certain types of cryptoasset by defining relevant cryptoassets as controlled investments. Responses are due by 25 October 2020. | Press release​.
  • (20 Jul 2020) HM Treasury terms of reference for the independent review into the UK's fintech sector, which was first announced in the March Budget 2020. 

 

 

 

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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