Global Fintech & Digital Assets Blog

Tag Archives: fintech

New York Department of Financial Services Issues Crypto Custody Guidance

The Guidance clarifies the regulator’s expectations on safekeeping customer digital assets, and the disclosures that must accompany such arrangements. By Arthur S. Long, Parag Patel, Marlon Q. Paz, Yvette D. Valdez, Barrie VanBrackle, Pia Naib, Donald Thompson, and Deric Behar On January 23, 2023, the New York Department of Financial Services (NYDFS) published Guidance on Custodial … Continue Reading

New York Department of Financial Services Issues Crypto Guidance for Banks

Digital asset activities of licensed institutions must be approved and will be assessed for potential safety and soundness risks. By Arthur S. Long, Pia Naib, and Deric Behar On December 15, 2022, the New York State Department of Financial Services (NYDFS) issued final guidance to covered institutions engaging in (or seeking to engage in) virtual currency-related … Continue Reading

E-Money, Payment Services, and Insolvency

Consumers and service providers should take note of some of the enhanced risks upon an e-money institution’s insolvency. By Hongbei Li Technology is rapidly changing the way customers and businesses interact with financial systems. Fintech companies are a driving force behind the disruption of traditional banking and payment services, with regulatory innovation close behind. In … Continue Reading

Hong Kong Launches International Carbon Marketplace, Singapore Introduces ESG Hub

Hong Kong’s Core Climate aims to facilitate trading of carbon credits, while the Hub plans to expedite Singapore’s ESG ecosystem growth. By Farhana Sharmeen, Paul A. Davies, and James Bee On 28 October 2022, the Hong Kong Exchange and Clearing Limited (HKEX) launched Core Climate, Hong Kong’s International Carbon Marketplace. The birth of Core Climate … Continue Reading

Hong Kong Continues Developing Its Virtual Asset Framework

The latest statements from the government and regulators indicate that Hong Kong is moving forward with enhancing its virtual asset regulatory and legal regime. By Simon Hawkins and Adrian Fong The Hong Kong government and the Securities and Futures Commission (SFC) announced their policy stances and further measures to support the development of virtual assets (VA) in … Continue Reading

CFPB Puts Fintechs in the Crosshairs

The agency just revived its dormant authority to supervise nonbank financial entities that it determines pose risk to consumers.  By Matt Hays, Benjamin Naftalis, Parag Patel, Barrie VanBrackle, and Deric Behar On April 25, 2022, the Consumer Financial Protection Bureau (CFPB) — the US government agency established under the Dodd-Frank Wall Street Reform and Consumer … Continue Reading

Hong Kong Fintech Week 2020: 3 Key Policy Initiatives of the HKMA

The HKMA introduces a new data sharing initiative, reported on the central bank digital currency initiative, and outlined regtech plans.  By Simon Hawkins, Kieran Donovan, and Kenneth Y.F. Hui The fifth annual Hong Kong Fintech Week conference kicked off with speeches and panels from both Hong Kong and international regulatory representatives, in addition to key … Continue Reading

MiCA: EU Commission Publishes Comprehensive Cryptoasset Market Regulation Proposal

The proposed regulation will provide greater consumer and investor protection and lessen the risks of participating in digital finance. By Stuart Davis The EU Commission has published a proposal for a wide-ranging EU regulation covering cryptoassets and e-money tokens, both of which are currently largely unaddressed in EU financial services legislation. The draft Markets in … Continue Reading

UK Government Proposes to Strengthen Protections Around Promotion of Financial Products and Cryptoassets

HM Treasury is planning significant changes to the financial promotion regime, including expanding its scope to certain cryptoassets, and amending the approval process for promotions of unauthorised firms. By Stuart Davis, Sam Maxson, and Anna Lewis-Martinez On 20 July 2020, HM Treasury published two consultation papers on a regulatory framework for approval of financial promotions … Continue Reading

UK Government Launches Major Independent Review of UK Fintech Sector

The Fintech Strategic Review aims to ensure the ongoing growth and success of UK fintech as a world leader in financial innovation. By Stuart Davis and Anna Lewis-Martinez On 20 July 2020, HM Treasury announced the launch of an independent review into the UK’s fintech industry to “identify opportunities to support further growth in the … Continue Reading

Bank of England Selected to Host New Innovation Hub Centre

Bank for International Settlements selects Bank of England as UK centre to host new fintech hub. By Stuart Davis, Brett Carr, and Sam Maxson On 30 June 2020, the Bank of England announced that it had been selected to host a centre of the Bank for International Settlements’ Innovation Hub. The UK centre will support … Continue Reading

Going Live: Vicarious Learning for Blockchain Deployment With the World Economic Forum

Latham Fintech partner Jenny Cieplak discussed consortium governance on a panel hosted by WEF at the Consensus: Distributed Conference. Jenny Cieplak, a member of Latham & Watkins’ Fintech Industry Group, recently discussed blockchain consortia governance issues as part of a panel hosted by the World Economic Forum (WEF) at the Consensus: Distributed conference. A replay … Continue Reading

Competition and Innovation in the UK’s New Payments Architecture

Call for input: market players need to engage with the process for the procurement of the NPA By Stuart Davis, David Little, Christian McDermott, Brett Carr, and Nathan Wilkins This Call for Input is part of the development of the Payment Systems Regulator’s (PSR) policy for the future regulation of the newly procured New Payments … Continue Reading

The CFTC Takes New Steps to Promote Innovation and ‘Explore the Unwritten Future’

The US derivatives regulator continues to foster FinTech adoption and leadership in US markets. By Yvette D. Valdez, Douglas K. Yatter, and Deric Behar The US Commodity Futures Trading Commission (CFTC) has affirmed its commitment to engaging the fast-moving financial technology world by elevating its LabCFTC unit to be an independent operating office within the … Continue Reading

Hong Kong FinTech Week: Day 1 in Review

SFC outlines new regulatory framework for virtual asset trading platforms, HKMA highlights recent FinTech initiatives, and PBOC discusses China’s forthcoming central bank digital currency. By Simon Hawkins and Kenneth Y.F. Hui The fourth annual Hong Kong FinTech Week conference kicked off with a major announcement from Mr. Ashley Alder, Chief Executive Officer of the Securities … Continue Reading

Harbor Finds Calmer FINRA Waters Outside the Custody Storm

In line with its previous guidance, FINRA has granted broker-dealer (but not custodian) status to a digital asset platform. By Stephen P. Wink, Cameron R. Kates, Shaun Musuka, and Deric Behar In a follow-up to the July 2019 SEC and FINRA joint staff statement (Joint Statement) clarifying the regulators’ position on the custody of digital … Continue Reading

Cryptoasset Trading Platforms: A Regulatory Trip Around the World

Latham & Watkins lawyers provide an in-depth look at the regulation of cryptoasset trading platforms in key jurisdictions. By Todd Beauchamp, Nozomi Oda, Yvette D. Valdez, Stephen P. Wink, and Simon Hawkins Cryptoasset trading is a fast-growing part of the financial sector. Some countries have wholeheartedly embraced cryptoassets; others have been more reticent to permit … Continue Reading

Navigating Data Processing Ethics for FinTech in Hong Kong

If adopted efficiently, the PCPD’s Ethical Accountability Framework should help organizations to demonstrate and enhance trust with individuals. By Kieran Donovan In October, 2018, Hong Kong’s Privacy Commissioner for Personal Data (PCPD) presented the findings of an inquiry into the ethics of data processing, commissioned by the PCPD with the help of the Information Accountability … Continue Reading

UK and Singapore Regulators Announce Enhanced Cybersecurity Collaboration

By Andrew C. Moyle, Grace Erskine, and Charlotte Collins As leading global financial and FinTech centres, the UK and Singapore will benefit from strengthening their cybersecurity alliance. On 13 June 2019, the Bank of England, the Financial Conduct Authority, and the Monetary Authority of Singapore announced that they will be working together to strengthen cybersecurity … Continue Reading

UK FinTech State of the Nation Report Highlights UK’s Leading Position

Report highlights key strengths and regulatory innovations to inform stakeholders for trade and investment. By Laura Holden and Nootan Vegad The Department for International Trade, with the support of Innovate Finance, has published a report titled the “FinTech State of the Nation”. Providing an overview of the UK’s FinTech industry and highlighting the UK’s appeal … Continue Reading

To Charter or Not to Charter? Federal Judge Presses Pause on the OCC’s Plans

Federal court allows NYSDFS lawsuit against OCC FinTech charter to proceed, raising further questions about the charter’s viability. By Alan W. Avery, Todd Beauchamp, Loyal T. Horsley, Pia Naib, and Charles Weinstein In a May 2 order, US District Court Judge Victor Marrero rejected the Office of the Comptroller of the Currency’s (OCC’s) recent motion … Continue Reading

What EBA’s Outsourcing Guidelines Mean for Financial Institutions

The guidelines create new obligations for financial, payment, and electronic money institutions that will impact cloud outsourcing and deployment of FinTech. By Fiona M. Maclean and Laura Holden On 25 February 2019, the European Banking Authority (EBA) published a final report on its draft guidelines on outsourcing arrangements (Guidelines). The report followed the EBA’s publication … Continue Reading

FCA Speaks Out on the Ethics of Big Data

FCA Chair hints that new regulation addressing data ethics in the FinTech space may be on the horizon. By Nicola Higgs, Fiona Maclean and Terese Saplys Will societies of the future be ruled by algocracy, in which algorithms decide how humans are governed? Charles Randell, Chair of the Financial Conduct Authority (FCA) and Payment Systems … Continue Reading

FCA Sets Expectations for Robo-Advisers

Many auto advisers and automated discretionary investment managers risk poor outcomes for customers by falling short of FCA expectations. By Nicola Higgs and Brett Carr The Financial Conduct Authority (FCA) has issued a statement outlining its expectations of firms providing automated online discretionary investment management (ODIM) services and retail investment auto advisers (auto advisors). The … Continue Reading
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