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Global Fintech Update

18 January 2023

Banking & Finance Fintech Crypto 18 January 2023

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.

SPOTLIGHT

Global Shift: Our M&A predictions for 2023:

This year's set of Clifford Chance's global M&A predictions includes a look ahead to what's coming for tech M&A. We're anticipating more detailed, strategically focussed DD, more complex carve-outs and an increase in strategic consolidation through bolt-on acquisitions and business co-operations.

GLOBAL LEGAL AND REGULATORY UPDATES, INDUSTRY GUIDANCE AND PUBLICATIONS

International

  • (12 Jan 2023) Bank for International Settlements (BIS) Bulletin on Addressing the risks in crypto: laying out the options, which summarises the lessons of the 2022 turmoil in cryptoasset markets and outlines three (non-mutually exclusive) lines of action to address the risks in crypto: a ban, containment and regulation, as well as their pros and cons. It also outlines complementary lines of policy action to address inefficiencies in traditional finance and curb the demand for crypto.
  • (10 Jan 2023) The Financial Stability Board (FSB) has published the responses it received to its October 2022 consultation on achieving greater convergence in cyber incident reporting.
  • (10 Jan 2023) International Institute for the Unification of Private Law (UNIDROIT) consultation on a set of draft principles and commentary on digital assets and private law. The consultation is intended to ensure that the draft principles are well suited to application in different contexts, including both civil law and common law jurisdictions as well as developing economies, emerging markets, and developed economies. The draft principles consider: private international law; control; custody; secured transactions; procedural law including enforcement; and insolvency. Deadline for comments: 20 February 2023 | Press release

Africa and the Middle East

Tanzania:

  • (14 Jan 2023) Bank of Tanzania public notice providing an update on its research on a central bank digital currency (CBDC) to date. The Bank says it has adopted a phased, cautious and risk based approach to the adoption of a CBDC and that it will continue to monitor, research and collaborate with stakeholders, including other central banks, in an effort to arrive at a suitable and appropriate use and technology for the issuance of Tanzanian shillings in digital form. Upon conclusion of the research phase, the Bank will provide information to the general public on the way forward, which may include a roadmap for adoption of a CBDC.

Americas

El Salvador:

APAC

China:            

  • (10 Jan 2023) People's Bank of China 2022 Financial Statistics Report (in Chinese), which indicates that the balance of digital renminbi in circulation at the end of December 2022 was 13.61 billion yuan (while the total balance of money in circulation was 10.47 trillion yuan).

Thailand:      

  • (17 Jan 2023) The Securities and Exchange Commission has issued regulations requiring digital asset business operators that provide custody of clients' digital assets to establish a digital wallet management system to accommodate efficient custody of digital assets and keys and ensure the safety of clients' assets. | Press release
  • (12 Jan 2023) Bank of Thailand (BOT) consultation paper on its virtual bank licensing framework, which will introduce virtual banks as new financial services providers in Thailand. The BOT estimates that successful applicants will be able to commence operations in Q2 2025. Consultation deadline: 12 February 2023. | Press release

Europe

EU:  

  • (17 Jan 2023) The EU Commission has published its tentative agendas for meetings of the Commission in H1 2023. According to the document, the Commission expects to table its legislative proposal setting out the principles of a digital euro on 24 May 2023.
  • (16 Jan 2023) Eurogroup statement on the digital euro project, which emphasises that the introduction of a digital euro as well as its main features and design choices require political decisions that should be discussed and taken at the political level. Amongst other things, the statement also calls for the environmental implications of the digital euro design to be considered and stresses that a digital euro should complement and not replace cash, and ensure a high level of privacy.
  • (16 Jan 2023) European Central Bank digital euro – stocktake slides setting out a timeline for the digital euro project and upcoming deliverables.
  • (12 Jan 2023) Joint Committee of the European Supervisory Authorities thematic report on national financial education initiatives on digitalisation, with a focus on cybersecurity, scams, and fraud. The report identifies good practices that national competent authorities and other public entities can follow when designing and implementing their financial education initiatives. | Press release
  • (11 Jan 2023) The EU Parliament has indicated that it expects to vote on the Markets in Cryptoassets Regulation (MiCA) and the recast Regulation on information accompanying transfers of funds and certain cryptoassets at a plenary session during the week beginning 17 April 2023.
  • (11 Jan 2023) European Securities and Markets Authority (ESMA) updated register of crowdfunding services providers.

UK:

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