FinTech and Blockchain Law Watch – Page 10 – At the Crossroads of Law, Innovation and Commerce

An Empire State Glimmer of Hope for Crypto

Jun 27 2020

It’s no secret that accessing the New York market is difficult, if not impossible, for some digital asset companies, especially those in their early stages. New York’s Department of Financial Services (“DFS”) is hoping to change that—at least incrementally—with several initiatives it recently announced. Our digital asset team will soon provide a detailed analysis of the initiatives, but in the meantime here is a brief summary:

The OCC’S ANPR on Digital Banking: Is this a Harbinger for Digital and Open Banking in the US?

Jun 19 2020

By Judie Rinearson, John ReVeal and Stan Ragalevsky

The office of the Comptroller of the Currency (OCC) issued an Advance Notice of Proposed Rulemaking (ANPR) on June 3, 2020, focusing on digital banking activities. Typically such ANPRs are a precursor to new federal regulation; following collection of data from the industry and other interested parties, the OCC may propose new regulations by issuing a Notice of Proposed Rulemaking within 6-12 months. Responses to the ANPR are due on August 3, 2020.

OCC Issues Final Rule to Fix Madden

Jun 15 2020

John ReVeal and Judie Rinearson

On May 29, 2020, the Office of the Comptroller of the Currency (“OCC”) issued a final rule (https://www.occ.gov/news-issuances/federal-register/2020/nr-occ-2020-71a.pdf) to clarify that, when a federal or state-chartered savings association transfers a loan portfolio, interest permissible on the loans before the transfer continues to be permissible after the transfer. In this way, the OCC hopes to resolve the uncertainty created by the Madden v. Midland Funding, LLC decision (“Madden”).

ECB reflections around central bank digital currencies

May 21 2020

By Giovanni Campi and Sofia Karagianni

The digitalization of finance is accelerating during the COVID-19 outbreak. Even before the pandemic, FinTechs and BigTechs had begun to change market dynamics by offering new forms of money and new means of payment. Central banks are also looking into the future of money and payments, and at the potential issuance of digital currencies.

FSB consults on cyber-attack response and recovery

Apr 28 2020

By Giovanni Campi and Sofia Karagianni

The Financial Stability Board (FSB) issued a consultation on a toolkit of measures designed to help ensure firms and regulators are well prepared to tackle cyber incidents. This consultation is part of the work initiated in 2017 following the launch of the FSB report gathering financial sector cybersecurity regulations, guidance and supervisory practices from several jurisdictions. The consultation is expected to lead to the submission of the toolkit to the G20 in October 2020.

Expanding Your Fintech/Payments Business to the U.S.

Mar 31 2020

By Judie Rinearson, Daniel Knight and Daniel Atkin

With Australia joining the boom in new and innovative Fintechs around the world, our challenger banks, payments businesses and Fintechs have gained global recognition.

While entering into the lucrative U.S market is enticing, it can also be a daunting concept for those without insider knowledge.

K&L Gates’ New York Fintech partner Judie Rinearson, was able to provide us with the information necessary for making the transition, successfully.

The FDIC’s Recent Brokered Deposit Rulemaking Might Provide Relief to the Prepaid Industry

Dec 19 2019

By Judie Rinearson and John ReVeal

On December 12, 2019, the Federal Deposit Insurance Corporation (“FDIC”) released a Notice of Proposed Rulemaking (“NPR”) to amend the brokered deposit regulation. While the proposed regulation will not eliminate the restrictions or remove all burdens from those institutions that accept brokered deposits, the NPR indicates that the FDIC has recognized that changes in technology call for changes in regulation. As a result, banks working with innovative prepaid payments companies to provide financial services might get some brokered deposit relief.

UK JURISDICTION TASKFORCE STATEMENT ON CRYPTO ASSETS AND SMART CONTRACTS – A “WATERSHED MOMENT”

Dec 19 2019

By Judith Rinearson and Philip Morgan

On November 18, 2019, Geoffrey Vos, Chancellor of the UK High Court, announced the launch of a “Legal Statement on Crypto Assets and Smart Contracts,” which he described as a “watershed moment” for English Law. The statement, which can be found here, brings new clarity to the likely status of both smart contracts and cryptocurrencies under English law.

A committee of experts has prepared the statement and, although technically it carries no binding legal authority, it is likely to be regarded as the most authoritative position available until the matters it covers are dealt with specifically by the English courts or by revised legislation.

To List or Not to List? NYDFS Seeks Comment on Proposed Rules Authorizing Bitlicensees to Self-Certify Cryptocurrency Listings

Dec 16 2019

Daniel S. Cohen and Jeremy M. McLaughlin

On December 11, 2019, the New York Department of Financial Services (“NYDFS”) published “Proposed Guidance Regarding Adoption or Listing of Virtual Currencies” (“Proposal”). The Proposal would establish a framework to allow “regulated virtual currency licensees” and entities exempt from licensure, such as trust companies, to offer or incorporate into their services cryptocurrencies that are:

pre-approved by NYDFS; or
certified by the licensee as being compliant with the licensee’s NYDFS-approved listing criteria.

The Proposal is intended to “enhance efficiency” and enable licensees to “offer and use new coins in a timely fashion”.

US Consumer Financial Protection Bureau Seeking Comments on Proposed Remittance Rule Revisions

Dec 12 2019

Jeremy M. McLaughlin and Daniel S. Cohen

On December 3, the United States Consumer Financial Protection Bureau (“CFPB”) published a notice of proposed rulemaking to revise the Remittance Rule (“Proposed Rule”) and is accepting comments until January 21, 2020. The proposal follows the CFPB’s April 2019 request for information on the Remittance Rule (see here for our previous discussion). The key provisions of the Proposed Rule address two aspects of the Remittance Rule: (1) the Rule’s applicability to a company that executes 100 or more remittances per year in the normal course of business, and (2) the Rule’s allowance for insured banks and credit unions to disclose estimates, rather than exact figures, under certain circumstances. This latter allowance is set to expire on July 21, 2020.