Category: Crowdfunding

1
P2P lending: UK rule changes
2
SEC Sends Wave of ICO Subpoenas
3
ASX Listings and Cryptocurrencies
4
Top 5 regulatory changes to watch for in 2018
5
Next FinTech Steps in Bahrain
6
Australian Securities and Investments Commission announces the commencement date for its crowd-sourced funding regime
7
Monetary Authority of Singapore on Initial Coin Offerings
8
Dubai launches regulatory framework for crowdfunding
9
Crowdfunding Regulation Part 2: Guidance For CSF Intermediaries
10
Crowdfunding Regulation Part 1: Guidance For Public Companies

P2P lending: UK rule changes

By Jonathan Lawrence

The UK Financial Conduct Authority (FCA) has issued its recommendations for changes to P2P lending regulations for loan-based crowdfunding platforms. Based on the FCA’s findings it invites responses to rule changes for loan-based firms which cover proposals to:

  • ensure investors receive clear and accurate information about a potential investment and understand the risks involved;
  • ensure investors are adequately remunerated for the risk they are taking;
  • provide transparent and robust systems for assessing the risk, value and price of loans, and fair/transparent charges to investors; and
  • promote good governance and orderly business practices.

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SEC Sends Wave of ICO Subpoenas

By Clifford Histed

According to press accounts, the SEC recently issued dozens of subpoenas and Requests For Information seeking details about the targeted initial coin offerings.  The correspondence accompanying the subpoenas and RFIs also reportedly make an unusual offer – in lieu of producing voluminous documents the subpoena recipients may voluntarily appear at the SEC’s office to answer questions.

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ASX Listings and Cryptocurrencies

By Jim Bulling and Edwin Tan

The Australian Securities Exchange (ASX) has recently provided several comments in relation to entities that are listed or looking to list on the ASX that are involved in cryptocurrency-related businesses, such as developing cryptocurrency tokens, conducting Initial Coin Offerings and operating cryptocurrency exchanges.

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Top 5 regulatory changes to watch for in 2018

By Jim Bulling and Michelle Chasser

As one year has drawn to a close it is time to look forward to 2018 and our tips for the most important 5 regulatory changes for the FinTech industry in Australia.

  1. Increased access to bank data.

The Government has announced its intention to introduce an open banking regime in Australia under which customers will have the ability to give third parties such as FinTechs access to the customer’s banking data. Treasury is currently conducting a review into open banking models, with the report which was due at the end 2017 yet to be released.

Also planned to come in to effect by 1 July 2018 is mandatory comprehensive credit reporting which will give lenders access to deeper and richer sets of data on consumers to base their credit decisions on. Comprehensive credit reporting is currently voluntary.

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Next FinTech Steps in Bahrain

By Jonathan Lawrence

The Central Bank of Bahrain (CBB) has announced the creation of a FinTech Unit. The aim of the Unit is to ensure the services are provided to individual and corporate customers in the FinTech sector. The announcement follows the CBB’s recent initiatives, which include a Regulatory Sandbox (which four companies have entered to date), in addition to the issuance of crowdfunding regulations for both conventional and Sharia compliant services.

The proposed Fintech Unit will be responsible for the approval process to participate in the Regulatory Sandbox, supervision of licensed companies’ activities and operations, including cloud computing, payment and settlement systems, and monitoring technical and regulatory developments in the FinTech field.

Australian Securities and Investments Commission announces the commencement date for its crowd-sourced funding regime

By Jim Bulling, Daniel Knight and Felix Charlesworth

The Australian Securities and Investments Commission (ASIC) has announced that will begin accepting applications under its new crowd sourced funding  (CSF) regime from 29 September 2017 onwards. From this date, applications can be submitted via the existing ASIC ‘eLicensing’ portal.

In preparation for the commencement of the CSF regime, ASIC has released an information sheet outlining:

  1. the expected application process and timeframe; and
  2. its approach of assessing applicants.

During the period between 29 September 2017 and 27 October 2017, ASIC will assess applications lodged on similar dates in ‘batches.’ Successful applications from each batch will progress broadly at the same time. Incomplete or inadequate applications lodged during this period may be refused or placed in later application batches. Applications which are lodged from 27 October 2017 onwards will be considered individually as soon as possible.

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Monetary Authority of Singapore on Initial Coin Offerings

By Judith Rinearson and Rizwan Qayyum

On August 10, 2017, the Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) jointly published a Consumer Advisory document which urged consumers to exercise due diligence before investing in digital tokens, with particular emphasis on the emergence of Initial Coin Offerings (ICOs). In Singapore, several ICOs have taken place in the past year and this has resulted in organisations raising millions of dollars in a few days since their launch.

An ICO is a crowdfunding method, facilitated by blockchain, through which a project or venture, usually a start-up organisation, raises funding by creating and selling its own digital asset, currency or token in exchange for digital currencies or assets of immediate value such as a Bitcoin. The practice is thus far unregulated and enables a new brand of alternative finance. An ICO campaign ‘runs’ for a defined period during which investors are able to support the project, with the aspiration that this digital asset becomes successful and their investment reaps profit.

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Dubai launches regulatory framework for crowdfunding

By Jonathan Lawrence

On 1 August, the Dubai Financial Services Authority (DFSA) launched its regulatory framework for loan and investment-based crowdfunding platforms, the first such framework in a Gulf Cooperation Council country. The regulations aim to ensure clear governance for FinTech businesses and provide appropriate protection for their customers. They also formalise the DFSA’s approach to regulating crowdfunding platforms which had operated through interim arrangements since 2016. The framework has not been officially released as yet so we will publish a link to the regulations when available.

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Crowdfunding Regulation Part 2: Guidance For CSF Intermediaries

By Jim Bulling, Michelle Chasser and Daniel Knight

The Australian Securities and Investments Commission (ASIC) has published Consultation Paper 289 Crowd-sourced funding: Guide for intermediaries. CP 289 includes a draft Regulatory Guide outlining ASIC’s proposed guidance for crowd-sourced funding platform operators (CSF intermediaries) who can apply to ASIC for a licence from 29 September 2017, including an explanation of the new Corporations Amendment (Crowd-sourced Funding) Regulations 2017.

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Crowdfunding Regulation Part 1: Guidance For Public Companies

By Jim Bulling, Michelle Chasser and Daniel Knight

While the Australian government considers including private companies in the crowd-sourced funding (CSF) regime, the Australian Securities and Investments Commission (ASIC) has published Consultation Paper 288 Crowd-sourced funding: Guide for public companies. CP 288 includes a draft Regulatory Guide outlining ASIC’s proposed guidance for public companies which will raise funds through the CSF regime from 28 September 2017, including an explanation of the new Corporations Amendment (Crowd-sourced Funding) Regulations 2017.

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