On 13 March 2024, the European Banking Authority (EBA) published a final report containing draft regulatory technical standards (RTS) to specify the requirements, templates and procedures for handling complaints received by issuers of asset reference tokens (ARTs) under Article 31 of the Regulation on markets in crypto-assets (MiCAR). The draft RTS set out: The draft … Continue Reading
On 8 March 2024, the FCA issued a report by the Synthetic Data Expert Group which discusses how synthetic data can be used to overcome data challenges and its practical applications in financial services. In particular the report focuses on 3 key themes across the data lifecycle: The FCA set up the Synthetic Data Expert … Continue Reading
On 7 March 2024, the Bank of England’s (BoE) Executive Director for Data and Analytics Transformation and Chief Data Officer, James Benford, delivered a speech on the steps being taken by the BoE to update its data and analytics strategy. Mr Benford explained that the BoE is carrying out a seven-step approach to refresh its … Continue Reading
On 6 March 2024, HM Treasury (HMT) published a consultation setting out the Government’s proposal for a new innovative market that aims to allow private companies to scale and grow, and to boost the pipeline of future initial public offerings (IPOs) in the UK. The consultation outlines a proposal for a new platform that will … Continue Reading
Background February was an important month in Hong Kong’s journey towards regulating the digital asset ecosystem and positioning itself as a leading innovation hub. On 20 February 2024, the Hong Kong Monetary Authority (HKMA) published comprehensive guidance on the provision of digital asset custody services (Custodial Services Circular) and the sale and distribution of … Continue Reading
In our 2024 FinTech Outlook, our lawyers from across Europe, the Middle East, Asia and the US share their insights on what to expect across the regulatory landscape in relation to FinTech and cryptoassets in 2024.… Continue Reading
On 22 February 2024, the European Commission (Commission) adopted two Delegated Regulations supplementing the Regulation on digital operational resilience for the financial sector (DORA): Both Delegated Regulations enter into force on the twentieth day following their publication in the Official Journal of the EU. They shall be directly applicable in all Member States.… Continue Reading
On 22 February 2024, the European Commission (Commission) adopted the following Delegated Regulations under the EU Markets in Crypto-Assets Regulation (MiCAR): The Council of the EU and the European Parliament will scrutinise the Delegated Regulations. If neither the Council of the EU nor the European Parliament objects, the Delegated Regulations will be published in the … Continue Reading
On 16 February 2024, the Government published correspondence from the Secretary of State for Science, Innovation and Technology, Michelle Donelan, and the Economic Secretary to the Treasury and City Minister, Bim Afolami, asking a set of regulators to publish an update on their strategic approach to artificial intelligence (AI). The correspondence included letters to the … Continue Reading
On 15 February 2024, the Office of Financial Sanctions Implementation (OFSI) published guidance on ransomware and financial sanctions, covering cyber sanctions legislation, sectoral sanctions risk and licensing. The guidance is intended to assist with the UK Government’s aim of disrupting and reducing the profitability of ransomware through using financial sanctions against the ransomware threat actors … Continue Reading
On 6 February 2024, the Government published its response to the March 2023 consultation on a pro-innovation approach to Artificial Intelligence (AI) regulation. The consultation response sets out a summary of the evidence the Government received along with its formal response and next steps for the AI regulation framework. The consultation sought views on the … Continue Reading
On 30 January 2024, the European Banking Authority (EBA) published a speech by its chair José Manuel Campa on digital finance, as well as confidence and resilience as a foundation of well-functioning financial markets. Before exploring digital finance, Mr Campa shared some observations on the theme of competitiveness. He emphasised that competitiveness equates to the … Continue Reading
On 1 February 2024, the European Banking Authority published a report on 2023 stocktaking of BigTech direct financial services provision in the EU. In 2023 the European Supervisory Authorities (ESAs) conducted a cross sectoral stocktake of BigTech subsidiaries carrying out financial services in the EU, through the European Forum for Innovation Facilitators (EFIF). The work … Continue Reading
On 29 January 2024, the European Securities and Markets Authority (ESMA) launched public consultations on two sets of guidelines it is mandated to develop for the purpose of the application of the Regulation on Markets in Crypto-Assets (MiCAR). The draft guidelines cover reverse solicitation and the qualification of crypto-assets as financial instruments. The following provides … Continue Reading
On 25 January 2024, the Bank of England (BoE) and HM Treasury (HMT) published their response to the consultation on a ‘digital pound’, which was launched in February 2023 and received over 50,000 responses. In the response they confirmed that no final decision has been made to pursue a digital pound, also known as a … Continue Reading
On 23 January 2024, the Bank for International Settlements’ (BIS) Innovation Hub announced its first six projects for its 2024 work programme. The projects focus on safety and security, green finance and next generation financial infrastructures. Additional work on advanced data analytics and tokenisation are also planned. Head of the BIS Innovation Hub Cecilia Skingsley … Continue Reading
In late 2023, HM Treasury set out its final proposals for the UK’s future financial services regulatory regime for cryptoassets, confirming its intention to bring a number of crypto activities into the regulatory perimeter for the first time. A week after HM Treasury’s final proposals were published, the FCA and the Bank of England both … Continue Reading
Background On 22 December 2023, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) issued an updated joint circular on intermediaries’ virtual asset-related activities (Joint Circular) with appendices. The Joint Circular supersedes the previous joint circular of 20 October 2023 (October Joint Circular). The Joint Circular was issued on the same … Continue Reading
On 27 December 2023, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly issued a public consultation paper on their legislative proposal to regulate issuers of stablecoin. The Hong Kong Government has decided that, in light of the important roles played by stablecoins in the Web3 and virtual … Continue Reading
On 27 December 2023, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly issued a public consultation paper on their legislative proposal to regulate issuers of stablecoin. The Hong Kong Government has decided that, in light of the important roles played by stablecoins in the Web3 and virtual … Continue Reading
On 18 December 2023, the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 (SI 2023/1398) were published, along with an explanatory memorandum. The Regulations create the first financial market infrastructure (FMI) sandbox, the Digital Securities Sandbox (DSS), which is intended to allow firms and the regulators to test the use of new … Continue Reading
On 19 December 2023, the International Organization of Securities Commissions (IOSCO) published a final report with policy recommendations to address market integrity and investor protection issues in decentralised finance (DeFi). The policy recommendations, which are principles-based and outcomes-focused, are addressed to relevant authorities and complement IOSCO’s policy recommendations for crypto and digital assets markets issued … Continue Reading
On 19 December 2023, the Financial Conduct Authority (FCA), the Bank of England (BoE) and the Prudential Regulation Authority (PRA) published the latest annual CBEST thematic report. CBEST tests the cyber resilience of firms and financial market infrastructures (FMIs) through live testing that mimics the actions of cyber attackers. The report, which contains cyber resilience … Continue Reading
On 15 December 2023, the European Parliament’s Economic and Monetary Affairs Committee published a draft report on the proposed Regulation on a framework for financial data access (FIDA). The FIDA proposal seeks to enable consumers and firms to more efficiently control access to their financial data beyond payments thereby allowing them to benefit from financial … Continue Reading