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Global Weekly Fintech Round-up

28 October 2019

28 October 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.

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CLIFFORD CHANCE PUBLICATIONS AND MATERIALS

Talking Tech article – New German model for the calculation of GDPR fines: a blueprint for Europe?

SPOTLIGHT

Stablecoins: A snaphot of global regulation

Global Legal Insights has published its latest book 'Blockchain and Cryptocurrency Regulation 2020' this week, including the chapter Clifford Chance produced with R3 'Stablecoins: A Global Overview of Regulatory Requirements in Asia Pacific, Europe, the UAE and the US' considering the key legal and regulatory issues raised by stablecoins. Global regulators and policy makers continue to scrutinise Facebook and its Libra stablecoin project, notably in a G20 statement and a further hearing in US this week.

GLOBAL LEGAL AND REGULATORY UPDATES

International

  • (23 Oct 2019) The Association of National Number Agencies, the international body behind the assignment of International Securities Identification Numbers (ISINs), has established a taskforce to investigate the adoption of identification standards for digital assets. | Press release
  • (18 Oct 2019) Financial Action Task Force statement on the money laundering risks posed by stablecoins and other emerging assets, in which it confirms that it will assess the implementation of its guidance on the risk-based approach to virtual assets as part of its mutual evaluation of countries.
  • (18 Oct 2019) G20 statement on global stablecoins, in which it acknowledges their benefits and risks and calls on the International Monetary Fund to investigate their macroeconomic implications | Documents considered: Financial Stability Board note on regulatory issues surrounding stablecoins | President's report to the G20 Financial Action Task Force
  • (16 Oct 2019) International Monetary Fund seminar on big tech and the future of finance, with panellists Mark Carney (Bank of England), Jason Furman (Harvard Kennedy School), David Marcus (Calibra) and Nandan Nilekani (Infosys Technologies Limited).

Americas

US:  

  • (24 Oct 2019) The Commodity Futures Trading Commission, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and the Securities and Exchange Commission have joined the Global Financial Innovation Network, a network of organisations committed to supporting financial innovation and to creating an environment for cross-border testing. | Press release
  • (23 Oct 2019) The US House Financial Services Committee held a hearing entitled 'An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors', at which Mark Zuckerberg testified on Facebook's cryptocurrency project Libra. | Webcast of hearing | Committee memorandum | .Zuckerberg's written testimony | Committee hearing website

Alongside the above Committee hearing, various Bills have been introduced to Congress aimed at halting Facebook's Libra project or placing stronger regulation on stablecoins and stablecoin issuers. These Bills include:

Europe

Germany:    

  • (19 Oct 2019) Federal Ministry of Finance money laundering and terrorist financing risk assessment (in German), in which it highlights, amongst other things, the risks posed by privacy tokens.

Lithuania:    

  • (21 Oct 2019) Bank of Lithuania guidelines on security token offerings, in which it clarifies the legal definition of tokens and the regulatory implications when they are defined as a financial instrument. | Press release

The Netherlands:    

  • (22 Oct 2019) The Authority for Consumers and Markets launches a market study into the impact of the entry of Big Techs into the Dutch payments market. | Press release

UK:

  • (23 Oct 2019) Financial Markets Law Committee paper on ​​issues of legal uncertainty regarding exchange tokens.

Middle East

Abu Dhabi:

  • (22 Oct 2019) The Abu Dhabi Global Market launches its digital sandbox, a cloud-based environment for fintechs, banks and others to test their innovative products with regulators. | Sandbox webpage​
CLIFFORD CHANCE EVENTS       

London Perspectives Series: The digital future of finance (12/13 Nov 2019): The Huw van Steenis report on the Future of Finance predicts major changes for the finance industry over the next decade, as the market and regulators adapt to a digital economy. Our experts will discuss what this means for financial institutions and how the Bank of England is looking to shape this transformation through smart data, the responsible use of AI and by responding to new risks. | 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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