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Weekly Global Fintech Update

02 August 2021

02 August 2021

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.

You are welcome to share the round-up with colleagues who may like to subscribe.

CLIFFORD CHANCE PUBLICATIONS AND MATERIALS

Talking Tech article – Payment for order flow: there is no such thing as a free lunch according to ESMA

Talking Tech article – Criminalisation of doxing in Hong Kong: Personal Data (Privacy) (Amendment) Bill 2021 introduces new offences

 

SPOTLIGHT: 
The Fintech Files: Myth-busting cryptoasset regulation

We have teamed up with Crafty Counsel for a new video series on fintech in the UK, focusing on the fast-growing payments and crypto markets. What keeps clients awake at night? What are the big market trends? What are the regulators thinking? Crypto is one of the most talked about and volatile sectors of the global financial system. However, amid all the noise, some myths have taken hold - and it’s time to bust them open. Is it really true that if a token is not a “security”, then it’s unregulated? Are banks “good to go” on issuing tokens?

To find out the answers to these and more from expert members of our fintech group watch the full video here. Or watch the full boxset of The Fintech Files: Payments & Crypto here

GLOBAL LEGAL AND REGULATORY UPDATES

International 

  • (29 Jul 2021) International Monetary Fund (IMF) policy paper setting out a proposed operational strategy for addressing policy issues related to the rise of public and private digital money. The paper summarises: the forces driving the adoption of digital forms of money; the new policy questions this gives rise to; how the IMF's core activities and output will need to change to address them; and how it intends to collaborate with other organisations, such as central banks, regulators, and the World Bank.
  • (26 Jul 2021) IMF blog post​ on using cryptoassets as national currency. The authors of the post argue that the risks and costs outweigh the potential benefits.

Africa

Egypt:            

  • (25 Jul 2021) Financial Regulatory Authority (FRA) strategy (in Arabic), which sets out a roadmap for its future activities and areas of focus over the next four years. In particular, FRA intends to prioritise digital transformation and the development of the fintech sector. | Press release (in Arabic)

Americas

Mexico:         

  • (16 Jul 2021) Portal website (in Spanish), launched by the National Commission for the Protection and Defence of Users of Financial Services (CONDUSEF), designed to help consumers file complaints against, or receive advice on, fintech firms regulated under the Law to Regulate Financial Technology Institutions (Ley para Regular las Instituciones de Tecnología Financiera) 

US:  

  • (26 Jul 2021) Letter from Senator Elizabeth Warren to the Secretary of the Treasury and Chair of the Financial Stability Oversight Council (FSOC), Janet Yellen, calling for FSOC to take a leading role in developing a coordinated and cohesive regulatory strategy to address the risks posed by cryptocurrencies

APAC

Hong Kong:

  • (26 Jul 2021) Hong Kong Monetary Authority (HKMA) guide​ on regtech solutions for managing activities related to anti-money laundering and the combatting of terrorism financing, particularly in the area of ongoing customer monitoring. The guide is the second issue of the HKMA's new regtech adoption practice guide series, which is intended to provide detailed practical guidance on the implementation of regtech solutions in the banking sector. | Covering circular

Republic of Korea:    

  • (26 Jul 2021) The Ministry of Economy and Finance has announced​ it is proposing amendments to the country's tax codes and property seizure procedures to permit tax authorities to confiscate cryptoassets held in digital wallets in instances of tax evasion | Press release​ (in Korean)

Singapore:   

  • (28 Jul 2021) The Monetary Authority of Singapore and the Bank for International Settlement's Innovation Hub Singapore Centre have announced the launch of Project Nexus, a proposed blueprint for enhancing the connectivity of global payments networks though the multilateral linking of national retail payment systems | Press release | Project Nexus webpage

Thailand:      

  • (29 Jul 2021) The Securities and Exchange Commissions of Thailand and Luxembourg have signed a memorandum of agreement, under which they agree to collaborate on the promotion of innovation in financial services and the exchange of information on emerging trends and developments in the financial or capital markets, and on regulatory issues pertaining to new technologies and innovation in the provision of financial services | Press release | See our table of fintech cooperation agreements for more information and a full list of international agreements.

Europe

Europe:         

  • (23 Jul 2021) European Association of Co-operative Banks response to the EU Commission's proposal for an Artificial Intelligence Act | Press release

Luxembourg:              

  • (29 Jul 2021) The Securities and Exchange Commissions of Thailand and Luxembourg have signed a memorandum of agreement, under which they agree to collaborate on the promotion of innovation in financial services and the exchange of information on emerging trends and developments in the financial or capital markets, and on regulatory issues pertaining to new technologies and innovation in the provision of financial services | Press release | See our table of fintech cooperation agreements for more information and a full list of international agreements.

Middle East

Israel:

  • (27 Jul 2021) Ministry of Finance consultation​ (in Hebrew), on legislative proposals regarding the 2021/22 economic plan, including amendments which will require investors to report any crypto holdings or purchase exceeding ILS 200,000 to tax authorities​. Responses are due by 31 July 2021. | Press release (in Hebrew)
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. 

The content above relating to the People's Republic of China (PRC) is based on our experience as international counsel representing clients in business activities in the PRC and should not be construed as constituting a legal opinion on the application of PRC law. As is the case for all international law firms with offices in the PRC, whilst we are authorised to provide information concerning the effect of the Chinese legal environment, we are not permitted to engage in Chinese legal affairs. Our employees who have PRC legal professional qualification certificates are currently not PRC practising lawyers.