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Global Weekly Fintech Update

09 December 2019

09 December 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

China indicates its commitment to strengthen intellectual property rights protection

Do you know what your AI is doing? Organisations using AI must understand how their AI works and be able to explain it to the public and to regulators

Enforcement risks in becoming a Hong Kong Securities and Futures Commission licensed virtual asset trading platform

SPOTLIGHT

Video: CC tech experts live at Singapore Fintech Festival – part 2

Our knowledgeable team continues to answer the web's most searched questions on fintech.  Click here to watch or here if you missed Part 1

GLOBAL LEGAL AND REGULATORY UPDATES

Africa

MENA:

  • (1 Dec 2019) The Arab Federation of Exchanges and the MENA Fintech Association have signed a fintech cooperation agreement to enhance collaboration within the Arab Capital Markets, including work on partnered accelerator programmes, joint innovation projects and the development of capacity building regimes for members of the Arabian exchanges markets | Press release | See our table of fintech cooperation agreements for more information and a full list of international agreements.

Mauritius:    

  • (2 Dec 2019) Bank of Mauritius Governor, Yandraduth Googoolye, speech on technology in the Mauritian financial system, including plans to develop a central bank digital currency for retail and wholesale payments.

Tanzania:     

  • (2 Dec 2019) Bank of Tanzania public notice on cryptocurrencies, in which it reminds the public that the trading, marketing and usage of cryptocurrencies is not legally authorised in Tanzania.

Americas

US:  

  • (4 Dec 2019) Financial Stability Oversight Council annual report, which, amongst other things, calls on federal and state regulators to continue examining the risks posed by digital assets and distributed ledger technologies to the US financial system.
  • (3 Dec 2019) Securities and Exchange Commission's Division of Investment Management Director, Dalia Blass, speech on the Division's work, in which she sets out a new structure for registered mutual funds seeking to invest substantially in digital assets and related investments.
  • (29 Nov 2019) US Attorney (Southern District of New York) has arrested a US citizen for allegedly delivering a presentation in North Korea on the use of cryptocurrency and blockchain technology to evade sanctions. | Press release.
  • (21 Nov 2019) US Attorney (Southern District of New York) has convicted a former partner of Locke Lord LLP for conspiracy to launder US$ 400 million of OneCoin (a fraudulent cryptocurrency scheme) proceeds. | Press release.

APAC

Japan:           

  • (4 Dec 2019) Bank of Japan Governor, Haruhiko Kuroda, speech on payment innovations and the role of central banks, in which he states, amongst other things, that there is currently no public demand in Japan for a central bank digital currency.

Republic of Korea:    

  • (4 Dec 2019) Financial Services Commission proposed measures​ to promote growth in the fintech sector, including improvements to the current regulatory sandbox system and an increase in the public sector support for fintech firms.

Europe

EU:

  • (5 Dec 2019) EU Council and EU Commission joint statement on stablecoins, in which they recognise that "global stablecoins" need a coordinated global response and state that such initiatives should not be launched in the EU until all the associated risks are adequately addressed.
  • (4 Dec 2019) European Central Bank note on innovation and its impact on the European retail payment landscape, prepared for the Economic and Financial Affairs Council (ECOFIN).

Finland:

  • (2 Dec 2019) Bank of Finland Governor, Olli Rehn, speech on the challenges and opportunities posed by data-driven financial stability.

France:

  • (4 Dec 2019) Autorité de Contrôle Prudentiel et de Resolution Chairman and Bank of France Governor, François Villeroy de Galhau, speech on innovative payments, in which he states the Bank intends to start testing a central bank digital currency by the end of Q1 2020.

Germany:    

  • (4 Dec 2019) Federal Financial Supervisory Authority (BaFin) statement (in German) asking undertakings that intend to provide crypto safe custody business from 1 Jan 2020 to indicate their interest now.
  • (29 Nov 2019) Bill (in German) implementing the fifth Anti-Money Laundering Directive (AMLD 5) passed by the Federal Council. Amongst other things, the Bill includes virtual wallet providers in the group of obliged entities and classifies the cryptocustody business as a financial service and the cryptovalue as a financial instrument under the German Banking Act. Unlike earlier iterations of the Bill, the passed version also permits banks to store cryptocurrencies rather than rely on third parties. It will become effective on 1 Jan 2020. | Bill webpage​.

Ireland:         

  • (29 Nov 2019) Central Bank of Ireland Deputy Governor, Ed Sibley, speech on a regulator's perspective on innovation in financial services.

UK:

  • (2 Dec 2019) The Financial Conduct Authority will be hosting two sessions on 11 and 16 Dec to explain its anti-money laundering and counter terrorist financing supervisory regime for UK cryptoasset businesses. | AML/CFT cryptoasset regime webpage.
  • (2 Dec 2019) The Information Commissioner's Office, in collaboration with The Alan Turing Institute, consultation on proposed guidance for explaining artificial intelligence decisions.| Blog post

Middle East

MENA:

  • (1 Dec 2019) The Arab Federation of Exchanges and the MENA Fintech Association have signed a fintech cooperation agreement to enhance collaboration within the Arab Capital Markets, including work on partnered accelerator programmes, joint innovation projects and the development of capacity building regimes for members of the Arabian exchanges markets | Press release | See our table of fintech cooperation agreements for more information and a full list of international agreements.

CLIFFORD CHANCE EVENTS

London - Tech innovation: the potential for startup-government collaboration (10 Dec 2019): Clifford Chance, in collaboration with the Royal United Services Institute (RUSI) will be hosting a conversation with former Vice-Chief of the Defence Staff General Sir Gordon Messenger, Surevine founder and CEO Stuart Murdoch and Clifford Chance counsel Josh Fitzhugh. The panel will consider how the tech industry – especially startups – and governments can better cooperate to find innovative solutions to national security threats. | 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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