FinTech Law Watch

At the Crossroads of Law, Innovation and Commerce

 

1
Japan’s New Crypto Regulation – 2019 Amendments to Payment Services Act and Financial Instruments and Exchange Act of Japan
2
OCC and FDIC Propose Rules to Confirm “Valid-When-Made” Doctrine
3
International FinTech Watch: China Announced Positive Stance on Blockchain Technology
4
Open super in Australia: The Consumer Data Right could be extended to the superannuation industry
5
Proposed Regulations under the California Consumer Privacy Act
6
Biometrics Replacing Passwords: Prospects and Concerns
7
ASX releases Compliance Update for listed entities on cryptocurrency-related activities
8
Rhode Island & Nevada Enter the Cryptocurrency Fray
9
To regulate or not to regulate? That was the question: UK FCA provides its Final Guidance on regulation of crypto-assets
10
When Does “Actual Delivery” of a Purchased Cryptocurrency Occur? U.S. Ninth Circuit Court of Appeals Sheds Some Light

Japan’s New Crypto Regulation – 2019 Amendments to Payment Services Act and Financial Instruments and Exchange Act of Japan

By Tsuguhito Omagari and Yuki Sako

Japan will fundamentally change its crypto asset regulations effective in spring of 2020.

In May, 2019, the National Diet, the Japanese national legislature, passed an amendment bill to the Payment Services Act (the “PSA”) and the Financial Instruments and Exchange Act (the “FIEA”), which was promulgated on June 7, 2019 (the “2019 Amendment”).  The 2019 Amendment will become effective within one year from promulgation, following further rulemaking by the Japan Financial Services Agency (the “JFSA”) to implement the 2019 Amendment, which is anticipated sometime soon and includes public comment process.

Read More

OCC and FDIC Propose Rules to Confirm “Valid-When-Made” Doctrine

By Rebecca Laird, Anthony Nolan and Daniel Cohen

Over the last two days, the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”) (together, the “Agencies”) each issued a proposed rule (collectively, the “Proposed Rules”) that would codify the Agencies’ position that the interest on a loan originated on a bank, if permissible when the loan was made, will continue to be a permissible and an enforceable term of the loan following the sale, assignment, or transfer of the loan. This is known as the “valid-when-made” doctrine.

Read More

International FinTech Watch: China Announced Positive Stance on Blockchain Technology

By Jim Bulling and Wendy Li

On 24 October 2019, China President Xi Jinping expressed strong support for blockchain, which was depicted as “a core technology” to promote China’s industry innovation and digital economy development. In his speech, he also noted that blockchain technology has already been applied in a number of sectors like digital finance, internet of things, intelligent manufacturing and supply chain management, and that since China has a solid foundation of blockchain technology, it should seize the opportunity to build up blockchain industrial ecology and accelerate the integration of blockchain, AI, big data and other cutting edge technologies.

Read More

Open super in Australia: The Consumer Data Right could be extended to the superannuation industry

By Jim Bulling and Rebecca Gill

On 23 October 2019, the Senate Committee on Financial Technology and Regulatory Technology (Committee) published an issues paper regarding its comprehensive inquiry into fintechs and regtechs in Australia.  One aspect of the inquiry looks into the possibility of extending the Consumer Data Right (CDR) to the superannuation industry. 

Read More

Proposed Regulations under the California Consumer Privacy Act

By Linda Odom and John ReVeal

On October 10, 2019, the California Attorney General issued proposed regulations under the California Consumer Privacy Act (CCPA). The Attorney General will hold four public hearings, on December 2 through December 5, 2019, during which statements or comments may be presented, orally or in writing. Written comments in addition to those submitted at the public hearing also may be mailed or emailed to the Attorney General’s office until 5:00 p.m. on December 6, 2019.

Read More

Biometrics Replacing Passwords: Prospects and Concerns

By Jim Bulling, Felix Charlesworth and Wendy Li

With the prevalence of smartphones in everyday life, momentum has been building for the use of biometrics to replace traditional passwords. To date, the most popular biometric authentication is fingerprint technology, followed by facial recognition technology. Less used types of biometrics also include eye-scanning, heartbeats and voice pattern.

Read More

ASX releases Compliance Update for listed entities on cryptocurrency-related activities

By Jim Bulling and Rebecca Gill

On 1 August 2019, the Australian Securities Exchange (ASX) published its Compliance Update (Update) which sets out its guidance for listed entities that are proposing to engage in cryptocurrency-related activities, being initial coin offerings (ICOs) and initial exchange offerings (IEOs).

The Update notes that many tokens offered to investors in Australia as part of an ICO or an IEO may be regulated by the Corporations Act 2001 (Cth) as the tokens may constitute interests in managed investment schemes. As such, listed entities should seek legal advice prior to engaging in cryptocurrency-related activities.

Read More

Rhode Island & Nevada Enter the Cryptocurrency Fray

Jeremy McLaughlin and Dan S. Cohen

Effective January 1, 2020, Rhode Island will join the growing list of states that require entities to obtain a money transmitter license to provide certain services involving cryptocurrency (a.k.a. virtual currency).  The Rhode Island General Assembly recently amended the state’s money transmitter law to require licensing for “currency transmission,” which is defined to include “maintaining control of virtual currency or transactions in virtual currency on behalf of others.” Similar to other states, the revised statute defines “control” as “the power to execute unilaterally or prevent indefinitely a virtual currency transaction.”

Read More

To regulate or not to regulate? That was the question: UK FCA provides its Final Guidance on regulation of crypto-assets

By Jim Bulling and Rebecca Gill

The UK Financial Conduct Authority (FCA) has released its Feedback and Final Guidance (Guidance) on crypto-assets, specifying when certain types of crypto-assets fall under existing categories. The Guidance is in response to the FCA’s consultation paper from January 2019 on crypto-assets. As we have previously blogged, the consultation paper looked at whether crypto-assets could be considered ‘specified investments’ under the Regulated Activities Order (RAO) and other instruments, and therefore should be regulated.

Read More

When Does “Actual Delivery” of a Purchased Cryptocurrency Occur? U.S. Ninth Circuit Court of Appeals Sheds Some Light

By Judith Rinearson

Back in 2018, four different courts in the U.S. held that cryptocurrencies were commodities. This did not cause a huge ripple in the cryptocurrency community because the Commodity Exchange Act does not apply to retail commodity sales if the “actual delivery” of the commodity occurs within 28 days after the execution of the transaction, and generally cryptocurrencies are delivered in merely a few days or less.

Read More

Copyright © 2019, K&L Gates LLP. All Rights Reserved.