Archive: February 2023

The US federal bank regulatory agencies issued a joint advisory to banks about the liquidity risks associated with taking deposits from crypto asset entities that are for the benefit of those entities’ customers. The advisory warned that such deposits may not be stable during periods of market volatility in the crypto sector. The regulators also warned about the stability of deposits that constitute stable-coin related reserves. This is a continuation of what has been a steady stream of cautionary guidance from the regulators over the past 2+ years about the risks associated with banking crypto businesses, or offering crypto-related products.

Thursday, March 9, 2023 | 09:00-10:15 GMT / Thursday, March 16, 2023 | 09:00-10:15 GMT

Australia’s recent announcement of a Token Mapping Consultation has generated much interest (and circumspection) in the crypto community.

On 6 February 2023 the three European Supervisory Authorities (ESAs) held a joint public hearing on the implementation of Regulation (EU) 2022/2554 on digital operational resilience for the financial sector (“Digital Operational Resilience Act” or DORA). As per a follow up press release, the event – held online – gathered over 2,000 representatives from credit and payment institutions, investment firms, (re)insurance undertakings, ICT third-party service providers and other financial entities. The focus of the joint hearing was to provide an opportunity for industry participants to engage with regulators on the new legislation, share their initial views and raise any potential areas of concern regarding the policy mandates that the ESAs have to develop over the course of 2023 and 2024.

The Commercial Court in Jinxin Inc v Aser Media Pte Ltd and others & Others has ruled that an employer’s right to monitor and access private information of an employee held on its systems does not extend to a loss of confidentiality in those documents, and therefore a loss of privilege, as against the employer.

On 8 February 2023, the European Banking Authority (EBA) published the keynote speech by Jose Manuel Campa at the AFORE’s 7th annual conference on fintech and regulation.

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here.

On 3 February 2023, the European Securities and Markets Authority (ESMA) updated its Questions and Answers (Q&As) on the implementation of Regulation (EU) 2022/858 on a pilot regime for market infrastructures based on distributed ledger technology (DLT).

Over a year ago the FTC fired the first warning shot – the FTC health breach notification rule would be used as the basis for enforcement actions where sites and apps shared health information without a user’s permission. Following suit, a few months ago, OCR announced guidance of its own that expanded the class of websites and apps governed by HIPAA. (You can read our coverage of both moves here and here.) Combined, these two moves restrict the sharing of health data with third parties –specifically when that data is shared with online advertisers.

On 1 February 2023, HM Treasury issued its latest proposals for the UK’s financial services regime for cryptoassets. It also issued a policy statement on its approach to the regulation of cryptoasset financial promotions. In this podcast Jonathan Herbst is joined by Albert Weatherill and Hannah Meakin who provide their views on the key headlines including scope, authorisation, timing and process.