FinTech Industry & Regulation – Page 22 – FinTech and Blockchain Law Watch

OCC Acting Comptroller Noreika’s Recent Remarks on FinTech Charter

Aug 02 2017

By Yuki Sako, Peter Nelson and Elizabeth Nelli

On July 19, 2017, the US Office of the Comptroller of the Currency (OCC) Acting Comptroller Noreika stated that special-purpose national bank charter is a “good idea that deserves thorough analysis and careful consideration.” He thinks that, despite the pending lawsuits filed by state bank regulators to challenge, the OCC has the authority to grant national bank charters to fintech companies in appropriate circumstances.

U.S. SEC issues report on digital currencies and related autonomous organizations

Jul 31 2017

By C. Todd Gibson and Evan Glover

On July 25th the United States Securities and Exchange Commission (“SEC”) released a report to put the market on notice that offers and sales of digital assets are subject to the requirements of the federal securities laws.

The report is a result of an investigation of a German created entity called The DAO (Decentralized Autonomous Organization), which is a virtual organization that exists within computer code and is executed on a blockchain or decentralized ledger. The DAO sold DAO Tokens, which had characteristics similar to stock (e.g. certain ownership and voting rights), with the intent to raise funds to finance various projects. The DAO Tokens were purchased using a digital currency and could be monetized by re-selling the token on a web-based platform that supported a secondary market. The DAO engaged in these offers and sales in the U.S. despite not registering with the SEC.

Australia stepping closer to open banking

Jul 26 2017

By Jim Bulling and Michelle Chasser

The Australian Treasury has announced an independent review into open banking in Australia. Open banking will require banks to share product and customer data with customers and third parties with the consent of the customer. The Government previously announced that the open banking regime would be introduced in 2018 to help customers seek more suitable products and increase competition.

Bank of England FinTech Accelerator Proofs of Concept

Jul 17 2017

By Jonathan Lawrence and Judith Rinearson

On July 10, 2017, the Bank of England (the “Bank”) published summaries of their third round of Proofs of Concept (“PoC”), completed by its FinTech Accelerator.

The FinTech Accelerator was established in 2016, and works in partnership with firms to understand the new technology they may be working with and how FinTech innovations could be utilised within central banking. These PoC provide valuable understanding in respect of FinTech trends and support to its continued development by providing a platform for those firms to demonstrate their solutions for real issues and knowledge from BoE experts.

Surging Adoption Levels of FinTech Services

Jul 07 2017

By Cameron Abbott and Ling Zhu

No great surprises arising from the EY FinTech Adoption Index 2017 which has revealed impressive growth in consumer uptake of FinTech products and services, with 33% of 22,000 digitally active consumers using FinTech firms – doubling from 16% in 2015. With less brand loyalty and reduced trust in traditional organisations, consumers are increasingly turning to FinTech firms as better alternatives.

Money transfer and payment services are the most popular FinTech category, with 50% of consumers using these services. This has been driven by the increasing popularity of mobile phone payments and online digital-only banks. Insurance is the second most popular service, with insurance premium comparative services simplifying the process of acquiring insurance.

FinTech has particularly excelled in emerging markets, with an adoption by digitally active consumers across China, India, South Africa, Brazil and Mexico averaging 46%. The growing middle class have embraced FinTech to meet the growing demand for financial services, encouraged by cooperative regulators and policymakers.

EY anticipates that FinTech adoption will increase to 52% globally as consumers become more aware of the products and services on offer.

Read the full report here.

A new finance association for UK

Jul 05 2017

By Jonathan Lawrence

A new trade body has been launched in the UK – UK Finance. It has been created by combining most of the activities of existing UK finance associations – the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. It operates across 300 companies and societies, who themselves operate in finance, lending, banking, markets, fraud prevention and payments. Its role will be to help its members build customer trust, facilitate industry-wide collaboration and innovation, and work with policy makers and regulators in the UK, European Union and at a global level to ensure that the UK retains its position as a global leader in financial services.

UK Finance recognises that FinTech is generating enormous possibilities for its members. Its CEO, Stephen Jones, envisages UK Finance’s collaboration with the sector will form one of the central pillars in the organisation’s role of ensuring all its members can deliver the latest advances to their customers. Peter Smith, the CEO and co-founder of Blockchain, represents the FinTech industry on the UK Finance board.

ASIC extends FinTech cooperation to Asian counterparts

Jun 30 2017

By Jim Bulling and Michelle Chasser

On 13 June 2017, the Australian Securities and Investments Commission (ASIC) entered into a FinTech co-operation agreement with the Hong Kong Securities and Futures Commission (SFC). Soon after, on 23 and 27 June 2017, ASIC also entered into similar arrangements with the Japan Financial Services Agency (JFSA) and the Malaysia Securities Commission (MSC). These arrangements provides a framework for ASIC to work more closely with these regulators.

As a result of these agreements, ASIC, SFC, JFSA and MSC can refer FinTech businesses to each other for advice and support via ASIC’s Innovation Hub, SFC’s FinTech Contact Point, JFSA’s FinTech Support Desk and MSC’s alliance of FINtech community (aFINity). This means Australian FinTech businesses wishing to operate in Hong Kong, Japan or Malaysia will now have a simple pathway for engaging with those countries’ regulators, and vice versa. This can provide valuable assistance for FinTech businesses operating in one jurisdiction which want to better understand the rules in the other.

UK regulatory sandbox’s second cohort announced

Jun 29 2017

By Jonathan Lawrence

The UK Financial Conduct Authority (FCA) has provided an update on its regulatory sandbox and unveiled the list of firms that were successful in their applications to begin testing in the second cohort of the sandbox. The regulatory sandbox allows businesses to test innovative products, services, business models and delivery mechanisms in a live environment. It is part of Project Innovate, an initiative begun in 2014 to coordinate the FCA’s approach to FinTech.

Going Dark: The use of anonymizing technologies in Dark Web crimes

Jun 18 2017

Like an iceberg, the majority of the internet is concealed from plain sight. The “Dark Web,” or websites and content that use anonymizing networks to provide untraceable access to unindexed sections of the web, comprises a segment of what lies beneath that which is visible through a Google search. Cliff Histed and Nicole Mueller contributed an article to American Lawyer on this topic. The article contains insight into the concerns shared by former FBI Director, James Comey, as well as European law enforcement authorities.

To read the article, click here.

UK industry-led sandbox consultation report

Jun 15 2017

By Jonathan Lawrence

The UK Financial Conduct Authority (FCA) asked Innovate Finance to chair a consultation on an ‘industry-led sandbox’. Innovate Finance is an independent not-for-profit membership association representing the UK’s global FinTech community. A report on their consultation on this industry sandbox has been published.

For the purposes of the consultation, an ‘industry sandbox’ was defined as ‘a shared off-market development environment where developers of FinTech solutions can access data, technologies, and services from different providers in order to validate innovative ideas or address common industry challenges‘. This sandbox would be set up and run by the industry to enable technology business to test their solutions (either virtually or live with limited participants) before they reach the market. It would also allow businesses and regulators to collaborate on developing the UK FinTech industry.

Category:FinTech Industry & Regulation