Clifford Chance

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 BRIEFINGS AND MATERIALS

• (29 Mar 2024) Clifford Chance briefing – China Revamps its Rules on Cross-border Data Transfer

SPOTLIGHT

The EU Cyber Resilience Act – Towards a safe and secure digital market in Europe

The EU’s Cyber Resilience Act (CRA) is waiting in the wings. On Tuesday 12 March, the European Parliament voted to approve the text of this milestone EU regulation, reflecting the political agreement reached by the European Parliament and the Council of the European Union late last year. The CRA is now awaiting formal approval by the Council and is expected to enter into force in the coming months. Originally proposed by the European Commission in September 2022, the CRA will introduce mandatory cybersecurity requirements for products with digital elements made available on the EU market, establishing a consistent EU-wide legal framework for essential cybersecurity requirements for such products

GLOBAL LEGAL AND REGULATORY UPDATES, INDUSTRY GUIDANCE AND PUBLICATIONS

International

• (28 Mar 2024) Financial Action Task Force (FATF) report on the status of implementation of its Recommendation 15 on virtual assets and virtual asset service providers (VASPs) by FATF members and other jurisdictions with the most materially important VASP activity. The report finds that many countries have yet to fully implement the FATF’s requirements and that this lack of implementation leaves significant loopholes globally, which criminals and terrorists exploit.| Webpage

Americas

Argentina

• (25 Mar 2024) The Comisión Nacional de Valores (CNV) has announced the creation of the Registry of Virtual Asset Service Providers, with interested parties now required to register in order to operate in the market. The purpose of the register is to help identify the human and legal persons that provide services related to cryptoassets in the country. | Press release (in Spanish)

APAC

Singapore:     

• (2 Apr 2024) The Monetary Authority of Singapore (MAS) has introduced amendments to the Payment Services Act and its subsidiary legislation to expand the scope of payment services regulated by the MAS, and to impose user protection and financial stability-related requirements on digital payment token (DPT) service providers. In particular, the amendments will bring the following activities within the scope of regulation under the Act: provision of custodial services for DPTs; facilitation of the transmission of DPTs between accounts and facilitation of the exchange of DPTs, even where the service provider does not come into possession of the moneys or DPTs; and facilitation of cross-border money transfer between different countries, even where moneys are not accepted or received in Singapore. These amendments will take effect in stages from 4 April 2024. | Press release

Europe

Luxembourg:  

• (27 Mar 2024) Commission de Surveillance du Secteur Financier (CSSF) communiqué regarding the new reporting procedure for information and communication technology (ICT) related incident reporting under Circular CSSF 24/847.  The communiqué provides further guidance related to the submission channels and procedure to be followed when submitting an ICT-related incident notification under the circular.

UK:

• (3 Apr 2024) Joint Bank of England and Financial Conduct Authority (FCA) consultation paper on their proposed approach to operating the Digital Securities Sandbox (DSS). Alongside the consultation paper, the regulators have published draft guidance for firms looking to enter the DSS, including details of how the Bank proposes to allow firms to scale their activities once authorised to undertake live activity in the DSS, and a detailed breakdown of how existing regulations related to securities depositories will be transposed into ‘Rules’ at different stages of the DSS. Subject to feedback, the regulators propose to publish final guidance for firms and open the DSS for applications in Summer 2024. Deadline for comments: 29 May 2024. | Press release

EVENTS

• Global Financial Markets Perspectives Series: Navigating cybersecurity and resilience in 2024 (online, 18 April 2024): The global trend towards increased cybersecurity and resilience regulation will tighten existing requirements and affect a broader range of businesses than ever before. From updates in SEC and NYDFS cyber requirements, to Singapore’s proposed Cybersecurity Amendment Bill, our global panel will examine developments in the US, APAC, Europe and the Middle East. | To register, please see the event series registration form
• Global Financial Markets Perspectives Series: AI Series: Regulating AI – examining global developments (online, 30 April 2024): This session will look at the global development of regulatory frameworks for AI, including emerging trends and diverging approaches being taken in different jurisdictions. This will include the EU’s AI Act, US developments at federal and state level, the UK perspective and the measures being taken in China to tackle regulation of generative AI and deepfakes. | To register, please see the event series registration form
• Global Financial Markets Perspectives Series: AI Series: Regulation of artificial intelligence in the UK and EU insurance sectors (hybrid, 16 May 2024): Our panel will take a closer look at developments in the regulation of AI systems in the UK and EU that are directed specifically at the insurance sector. This includes comparing the EU AI Act with the latest information on the PRA and FCA’s approach to AI regulation that will affect the insurance sector value chain. We will consider how the insurance sector in the UK and EU could prepare for these new regulations, with a focus on the potential implications for governance arrangements and systems and controls. | To register, please see the event series registration form
• Global Financial Markets Perspectives Series: AI Series: Contracting for AI (online, 13 June 2024): What makes procuring AI different from procurement of other software or services? How does this affect your contract terms and supplier onboarding and management processes? When there is limited scope for negotiation, where should you focus your efforts? In this session we will discuss strategy and practical tips for contracting for AI. | To register, please see the event series registration form