Product innovation (including in pooled investment vehicles) is encouraged, but innovation must be consistent with the law. By Yvette D. Valdez, Douglas K. Yatter, J. Ashley Weeks, and Deric Behar The US Commodity Futures Trading Commission’s (CFTC’s) Division of Swap Dealer and Intermediary Oversight (DSIO) Director Joshua B. Sterling issued a statement on February 10, 2020, supporting responsible digital asset product innovation, including pooled investment vehicles seeking exposure to digital assets and…

The final guidelines create new obligations for insurers that will impact cloud outsourcing arrangements. By Fiona M. Maclean, Andrew C. Moyle, and Victoria Sander On 6 February 2020, the European Insurance and Occupational Pensions Authority (EIOPA) published its final guidelines on outsourcing to cloud service providers (CSPs) (the Guidelines). The Guidelines have been finalised following public consultation on the draft guidelines launched on 1 July 2019, and closely follow the European Banking Authority’s…

The landmark authorization signals the Mexican government will likely grant similar licenses to more FinTech companies in the coming months. By Yvette Valdez, Roderick Branch, and Daniel Gallo Mainero* Nearly two years after the Mexican government enacted its Financial Technology Institutions Law (FinTech Law), the Mexican National Banking and Securities Commission (CNBV) issued its first license on January 22, 2020. The license authorizes NVIO Pagos México, an affiliate of Bitso, a cryptocurrency…

Latham derivatives and FinTech partner Yvette Valdez explores regulatory issues impacting cryptocurrency derivatives on the Fintech Beat podcast. By Yvette D. Valdez New York partner Yvette Valdez, a member of Latham & Watkins’ FinTech Industry Group, recently discussed timely issues at the intersection of cryptoassets and derivatives law on a new episode of Fintech Beat. Valdez spoke with host Chris Brummer about a number of regulatory issues impacting cryptocurrency derivatives, including: Whether cryptocurrencies or…

The FinTech sandbox would aim to foster innovation in the financial, credit, and insurance sectors. By Antonio Coletti and Isabella Porchia The Italian Ministry of Economy and Finance has launched a public consultation on a draft ministerial decree (Draft Decree) implementing the mandate received by the Italian legislature (Decreto Crescita) to set up a regulatory sandbox to test FinTech activities in the financial, credit, and insurance sectors and establish a FinTech Committee. FinTech…

SEC Commissioner Peirce has proposed a three-year safe harbor for qualifying token projects, but regulatory clarity remains elusive. By Stephen P. Wink, Carolina Bernal, Shaun Musuka, and Deric Behar SEC Commissioner Hester Peirce has been a perennial advocate of innovation in the financial services and digital asset space. Continuing that tradition, she unveiled a Token Safe Harbor Proposal in a speech at the International Blockchain Congress on February 6, 2020. The proposal…

Upgraded legislation creates an enhanced regulatory framework for the new age of payments, including e-money and digital payment tokens.  By Farhana Sharmeen and Simon Hawkins After much anticipation, and following consultations with the industry at large, the game-changing Payment Services Act 2019 (PSA) has finally become operational. The PSA, which came into effect on 28 January, is the omnibus legislation dealing with payment services and systems, which adopts an activity-based licensing framework and risk-based regulatory…