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Global Fintech Update

7 July 2023

Fintech Banking & Finance 6 July 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.

CLIFFORD CHANCE PUBLICATIONS AND MATERIALS

SPOTLIGHT 

Webinar: International data flows – navigating the global legal landscape

The legal landscape for cross-border data sharing is complex and evolving. Data transfer, including cross-border data minimisation, is in the regulatory spotlight and privacy laws and data localisation requirements are developing globally, including legislative proposals requiring the sharing of certain data.

In a recent webinar, our expert international panel examined recent legal developments impacting data flows across China, the EU, Middle East, UK and US, related international cooperation efforts and how organisations can navigate the challenges of international data transfer

GLOBAL LEGAL AND REGULATORY UPDATES, INDUSTRY GUIDANCE AND PUBLICATIONS

International

  • (29 Jun 2023) Bank for International Settlements (BIS) Financial Stability Institute Executive Summary of the Financial Stability Board (FSB)’s proposed framework for the international regulation of cryptoasset activities. | Webpage

Americas

Canada:       

  • (14 Jun 2023) House of Commons Standing Committee on Industry and Technology report on blockchain technology and cryptocurrencies, which highlights the importance of recognising the contribution of blockchain technology in a variety of industries in Canada and calls on the Government to support blockchain as an emerging industry capable of stimulating the economy and creating long-term jobs while also protecting and informing Canadians. | Webpage

APAC

New Zealand:

  • (30 Jun 2023) The Reserve Bank of New Zealand (RBNZ) has published a summary of the responses it received to its December 2022 issues paper on the future of money and set out its next steps. The RBNZ has concluded that a regulatory approach to stablecoins and cryptoassets is not needed at present, but that increased vigilance is, and that there is a need for enhanced data and monitoring to build understanding. | Webpage | Press release

Singapore:   

  • (3 Jul 2023) The Monetary Authority of Singapore (MAS) has announced new requirements for digital payment token (DPT) service providers to safekeep customer assets under a statutory trust before the end of the year. This is intended to mitigate the risk of loss or misuse of customers’ assets, and facilitate the recovery of customers’ assets in the event of a DPT service provider’s insolvency. The MAS will also restrict DPT service providers from facilitating the lending and staking of DPT tokens by their retail customers. | Press release

Europe

EU:

  • (4 Jul 2023) Speech by European Banking Authority (EBA) Chair, José Manuel Campa, on fintech and the future of financial intermediation.
  • (28 Jun 2023) Minutes from the first meeting of the European Central Bank (ECB)’s New Technologies for Wholesale settlement Contact Group on 21 Jun 2023. Amongst other things, the ECB clarified that it envisions starting exploratory work around wholesale settlement based on distributed ledger technology (DLT) in 2024.

Germany:       

  • (5 Jul 2023) German AI Association position paper on the Artificial Intelligence Act, the text of which is currently subject to trilogue negotiations between the EU legislators. The paper singles out generative AI, definitions of AI, high-risk AI systems, standardisation and support for innovation as the key topics negotiators should get right during trilogues.

Lithuania:

  • (28 Jun 2023) Ministry of Finance press release on the Memorandum on the implementation of the Action Plan for the development of the financial technology sector in Lithuania for 2023-2028, which has been signed by the Ministry of Finance, the Bank of Lithuania and a number of market participants with the aim of promoting the Lithuanian fintech sector.

UK:

  • (4 Jul 2023) The Financial Conduct Authority (FCA) has published a letter from its Director for Consumer Investments Supervision, Policy and Competition, Lucy Castledine, reminding all firms marketing cryptoassets to UK consumers, including firms based overseas, that they must comply with the financial promotions regime from 8 October 2023. The FCA has asked firms to acknowledge receipt of the letter and to complete an online survey by 4 August 2023 to help the FCA understand what firms are doing to prepare for the regime.
  • (30 Jun 2023) The joint HM Treasury/Bank of England consultation on the case for a retail CBDC or 'digital pound' launched in February 2023 has now closed. Notable public responses to date:  CryptoUK | Digital Pound Foundation | Innovate Finance | IRSG | PSR | UK Finance
  • (29 Jun 2023) The Financial Services and Markets Bill and the Retained EU Law (Revocation and Reform) Bill have received Royal Assent and become Acts of Parliament. The Financial Services and Markets Act 2023 is intended to implement the outcomes of the UK Government's future regulatory framework (FRF) review and to make other significant changes to the structure and content of UK financial services regulation. Amongst other things, it enables the regulation of cryptoassets and establishes sandboxes to facilitate the use of new technologies such as blockchain in financial markets. | Press release | CC article
  • (27 Jun 2023) Law Society Legal & Regulatory Guidance on Blockchain (3rd edition), which includes  guidance on a range of key issues for legal practitioners to be aware of when advising on DLT-related matters. | Webpage

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