On this weekly publish, we round-up FinTech-related monetary providers regulatory developments for the week ending 18 August 2023.
ICYMI
UK
FCA: Expectations for UK cryptoasset companies complying with the Journey Rule
The FCA has outlined its expectations for cryptoasset companies that must adjust to a change in cash laundering laws. From 1 September 2023, cryptoasset companies within the UK can be required to gather, confirm and share details about cryptoasset transfers, often known as the ‘Journey Rule’. The Journey Rule aligns practices for cryptoasset companies sending and receiving transactions, with these frequent in different areas of economic providers. The FCA has been working with business, the Joint Cash Laundering Steering Group (JMLSG) and HM Treasury (HMT), on steering to assist companies adjust to the Journey Rule. Corporations have till 25 August 2023 to enter to the steering. [17 Aug 2023]
#Cryptoassets #TravelRule
EU
EC: Open finance framework – enabling knowledge sharing and third get together entry within the monetary sector
The European Fee (EC) has up to date its web site to point that the deadline for offering suggestions on the adopted open finance proposal has been prolonged to 12 October 2023. [17 Aug 2023]
#OpenFinance #Knowledge
ESMA Chair feedback on MiCA in interview
In an interview revealed within the European Central Financial institution’s (ECB’s) Banking Supervision E-newsletter, the Chair of the European Securities and Markets Authority (ESMA), Verena Ross, spoke a couple of vary of points, from the influence of the March banking turmoil on the single-name credit score default swaps (CDS) market to environmental, social and governance issues.
Commenting on the introduction of the Markets in Crypto-Belongings Regulation (MiCA), Ms Ross famous that MiCA is meant to supply shopper safety, improve market integrity and promote monetary stability. Nevertheless, whereas customers may have extra details about crypto merchandise and the dangers concerned, the ESMA Chair warned that ‘there can be no such factor as a protected crypto-asset’. [16 Aug 2023]
#cryptoassets #MiCA
ECB publishes occasional paper on CBDCs and monetary stability
The ECB has revealed an occasional paper which seems to be at how central financial institution digital currencies (CBDCs) influence the stability sheets of banks and central banks. The summary to the paper explains that the authors modelled the influence of a fictitious digital euro being launched in Q3 of 2021. They discovered that, ‘a €3,000 digital euro holding restrict per individual […] would have been profitable in containing the influence on financial institution liquidity dangers and funding constructions and on the Eurosystem stability sheet, even in extraordinarily pessimistic eventualities’. [16 Aug 2023]
#CBDCs
Hong Kong
HKMA invitations chosen licensed banks to take part in interbank account knowledge sharing initiative pilot programme
The Hong Kong Financial Authority (HKMA) has issued a round to ask chosen licensed banks to take part within the pilot programme for the Interbank Account Knowledge Sharing (IADS) initiative, which permits clients to securely and effectively share their checking account knowledge with different banks topic to their consent.
The HKMA’s Fintech Facilitation Workplace (FFO) just lately accomplished a preliminary research of the IADS initiative in collaboration with the Hong Kong Affiliation of Banks and the chosen licensed banks. The findings recommend that sharing buyer checking account knowledge between banks might assist digitalise banking operations, strengthen threat administration, and improve the client expertise. The principles and requirements facilitating interbank customer-consented knowledge sharing have been developed by means of the research, paving the way in which for operationalising the IADS initiative. Within the IADS pilot programme, choose use instances and implementation points can be examined to assist formulate a doable implementation method.
The HKMA’s Banking Supervision Division has been consulted and is supportive of the IADS initiative. Licensed banks who’ve acquired the HKMA’s round are anticipated to take part within the pilot programme, and full all essential preparations by the top of 2023. The FFO will present additional particulars to facilitate the banks’ participation within the pilot programme. [15 Aug 2023]
#IADS #knowledge
HKSCC points round relating to connectivity check to organize for FINI market rehearsal classes
The Hong Kong Securities Clearing Firm Restricted (HKSCC) has issued a round relating to a quick connectivity check on 19 August 2023 (from 10am to 12pm), to facilitate preparation for the market rehearsal classes for the Quick Interface for New Issuance (FINI) scheduled for 26 August and a pair of September 2023 (see our earlier updates right here and right here).
The HKEX strongly encourages all FINI customers to log into FINI through the specified timeframe on 19 August 2023 to confirm their consumer account setup and connectivity previous to the market rehearsal classes. Throughout the connectivity check, FINI customers will be capable of entry the FINI homepage. There can be no IPO knowledge setup through the check, and no additional motion is required from FINI customers following profitable login.
FINI customers who haven’t but accomplished their consumer account and consumer groups setup throughout the HKEX Entry Administration Portal are reminded to take action on or earlier than 21 August 2023. Additional steering is supplied within the HKEX Entry Administration Person Information.
FINI customers are reminded to take part available in the market rehearsals on 26 August 2023 and a pair of September 2023. FINI banks are required to affix each classes, while HKSCC individuals have the choice of becoming a member of one or each classes. Different FINI customers can be invited by e-mail to take part in a pre-assigned check case and session. [15 Aug 2023]
#markets #platform #itemizing #IPO #FINI
Singapore
MAS responds to name to extend the FAST restrict
The Financial Authority of Singapore (MAS) has revealed a response to a letter revealed within the Straits Occasions calling on it to evaluate the every day Quick and Safe Transfers (FAST) restrict as cheque use declines; the letter prompt that the every day restrict needs to be raised past the present $200,000. In its response, the MAS notes that the FAST transaction restrict serves as one of many safeguards in opposition to fraud and scams and that elevating it will require, at the side of the banking business, cautious consideration of the dangers and the extra mitigating measures that will have to be put in place. The MAS additionally factors out that financial institution clients who want to switch quantities above $200,000 might use Interbank GIRO or MEPS+ to take action. [15 Aug 2023]
#Funds
MAS: Finalisation of stablecoin regulatory framework
The MAS has finalised a brand new regulatory framework that seeks to make sure a excessive diploma of worth stability for stablecoins regulated in Singapore. The regulatory framework takes into consideration suggestions from an October 2022 public session. The MAS stablecoin regulatory framework will apply to single-currency stablecoins (SCS) pegged to the Singapore Greenback or any G10 forex which are issued in Singapore. Issuers of such SCS must fulfil key necessities referring to:
- worth stability;
- capital;
- redemption at par; and
- disclosure
Stablecoin issuers should fulfil all necessities underneath the framework to have the ability to apply to MAS for his or her stablecoins to be recognised and labelled as ‘MAS-regulated stablecoins’. Underneath the brand new regulatory framework, those that misrepresent a token as a ‘MAS-regulated stablecoin’, could also be topic to penalties. [15 Aug 2023]
#Stablecoins
India
RBI broadcasts launch of Public Tech Platform pilot
The Reserve Financial institution of India (RBI) has introduced the launch of the pilot challenge for the Public Tech Platform for Frictionless Credit score, with impact from 17 August 2023. The Platform is being developed by Reserve Financial institution Innovation Hub (RBIH), an entirely owned subsidiary of RBI.
The Platform is meant to allow supply of frictionless credit score by facilitating a seamless circulation of required digital data to lenders. The tip-to-end digital platform may have an open structure, open Utility Programming Interfaces (APIs) and requirements, to which all monetary sector gamers can join seamlessly in a ‘plug and play’ mannequin. It’s being rolled out as a pilot challenge in a calibrated vogue, each when it comes to entry to data suppliers and use instances.
Throughout the pilot, the Platform will give attention to merchandise similar to Kisan Credit score Card loans as much as ₹1.6 lakh per borrower, Dairy Loans, MSME loans (with out collateral), Private loans and Residence loans by means of collaborating banks. The platform shall allow linkage with providers similar to Aadhaar e-KYC, land information from onboarded State Governments (Madhya Pradesh, Tamil Nadu, Karnataka, Uttar Pradesh, and Maharashtra), Satellite tv for pc knowledge, PAN Validation, Transliteration, Aadhaar e-signing, account aggregation by Account Aggregators (AAs), milk pouring knowledge from choose dairy co-operatives, home/property search knowledge and extra. Primarily based on the learnings, the scope and protection could be expanded to incorporate extra merchandise, data suppliers and lenders through the pilot. [14 Aug 2023]
#platforms #knowledge #APIs #credit score
US
CFPB Director broadcasts plans to develop guidelines for knowledge brokers
Shopper Monetary Safety Bureau (CFPB) Director Rohit Chopra has introduced that the CFPB can be growing guidelines to forestall misuse and abuse by knowledge brokers that monitor, accumulate, and monetize details about folks. Talking at a Whitehouse Roundtable, Director Chopra commented: “At present, ‘synthetic intelligence’ and different predictive decision-making more and more depends on ingesting large quantities of information about our every day lives. This creates monetary incentives for much more knowledge surveillance.”
In September, the CFPB will publish a top level view of proposals and options into consideration for a proposed rule underneath the Truthful Credit score Reporting Act (FCRA) which is able to handle enterprise practices utilized by corporations that assemble and monetize knowledge. It’ll then suggest the rule for public remark in 2024.
The CFPB has revealed frequently-asked-questions (FAQs) which set out its work on this space and subsequent steps. [15 Aug 2023]
#Knowledge #AI
FDIC publishes 2023 Danger Evaluation
The Federal Deposit Insurance coverage Company (FDIC) has revealed its 2023 Danger Evaluation. The 2023 Danger Evaluation gives a complete abstract of key developments and dangers within the U.S. banking system; this version features a new part targeted on crypto-asset threat. The report focuses on the results of key dangers on neighborhood banks specifically, because the FDIC is the first federal regulator for almost all of neighborhood banks within the U.S. banking system.
The FDIC’s Danger Evaluation is an annual publication and based mostly on year-end banking knowledge from the prior yr. This yr’s expanded report incorporates knowledge and insights associated to the current stress to the banking sector by means of first quarter 2023. FDIC intends to publish its subsequent Danger Evaluation within the spring of 2024. [14 Aug 2023]
#Cryptoassets
