Banking News

US regulators inc. SEC join cross border finance sandbox

fintech

On the 24th October, the US Securities and Exchange Commission (SEC) announced that it and other US monetary regulators had joined the Global Financial Innovation Network (GFIN). The Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and the SEC signed up to the network to foster innovation and collaboration in finance.

Launched in January, the GFIN aims to be a global sandbox for testing fintech solutions with cross-border applications. It came about after a proposal from the UK Financial Conduct Authority (FCA) last year, which suggested there was a lack of infrastructure for firms to trial potential projects across different regulatory areas.

Upon launch, the GFIN had 29 international regulators, including the FCA, the monetary authorities of Singapore (MAS) and Hong Kong (HKMA), and the US Consumer Financial Protection Bureau (CFPB). By June, as the group’s annual report states, that membership had grown to 35.

Now, the network has 46 international monetary organizations, including four more US regulators. All have a role in overseeing digital currencies; the SEC had numerous disputes over virtual tokens and has its own blockchain unit. The CFTC, for instance, also has guidelines in regulating cryptocurrencies. CFTC Commissioner Brian Quintenz spoke with the SEC’s Hester Peirce on blockchain innovation earlier this year.

The GFIN is currently working on cross-border tests involving the FCA, MAS, HKMA, Australian Securities & Investments Commission, Bank of Lithuania, and Dubai Financial Services Authority, among others. The regulators are working with eight firms, many of which use blockchain.

Alphapoint is working with Lithuanian and Bermudian authorities on its digital assets test. So is Coinvestion, also with the MAS and others, for a blockchain real estate shares project. DACX utilizes the technology for cross-border transactions while Tradle uses it for know your customer (KYC) policies.

Coordination Group
Organisation Jurisdiction
Australian Securities & Investments Commission (ASIC) Australia
Central Bank of Bahrain (CBB) Bahrain
Autorité des marchés financiers (AMF) Québec, Canada
Guernsey Financial Services Commission (GFSC) Guernsey
Hong Kong Monetary Authority (HKMA) Hong Kong
Hong Kong Securities and Futures Commission (HKSFC) Hong Kong
Astana Financial Services Authority (AFSA) Kazakhstan
Monetary Authority of Singapore (MAS) Singapore
Dubai Financial Services Authority (DFSA) United Arab Emirates
Financial Conduct Authority (FCA) United Kingdom
Consumer Financial Protection Bureau (CFPB) United States
Members
Organisation Jurisdiction
Bermuda Monetary Authority (BMA) Bermuda
Securities and Exchange Commission of Brazil (CVM) Brazil
Alberta Securities Commission (ASC) Alberta, Canada
British Columbia Securities Commission (BCSC) British Columbia, Canada
Ontario Securities Commission (OSC) Ontario, Canada
Financial Services Regulatory Authority of Ontario (FSRA Ontario) Ontario, Canada
Centrale Bank van Curaçao and Sint Maarten Curaçao and Sint Maarten
Central Bank of Eswatini Eswatini (Swaziland)
Gibraltar Financial Services Commission Gibraltar
Hong Kong Insurance Authority (IA) Hong Kong
Magyar Nemzeti Bank (Central Bank of Hungary) Hungary
Isle of Man Financial Services Authority (IOMFSA) Isle of Man
Israel Securities Authority (ISA) Israel
Capital Market, Insurance, and Savings Authority (CMISA) Israel
Jersey Financial Services Commission (JFSC) Jersey
Capital Markets Authority (CMA, Kenya) Kenya
Bank of Lithuania (BL) Lithuania
Commission de Surveillance du Secteur Financier (CSSF) Luxembourg
Financial Services Commission Mauritius (FSC) Mauritius
Comision Nacional Bancaria y de Valores (National Banking and Securities Commission) (CNBV) Mexico
Seychelles Financial Services Authority Seychelles
South African Reserve Bank (SARB) South Africa
Financial Supervisory Commission Taiwan Taiwan
Abu Dhabi Global Market (ADGM) United Arab Emirates
Central Bank of the UAE United Arab Emirates
Securities and Commodities Authority, UAE (ESCA) United Arab Emirates
Commodity Futures Trading Commission (CFTC) United States
Federal Deposit Insurance Corporation (FDIC) United States
Office of the Comptroller of the Currency (OCC) United States
Securities and Exchange Commission (SEC) United States
New York State Department of Financial Services (NY DFS) State of New York, United States
Office of the Arizona Attorney General State of Arizona, United States
Observers
Organisation Jurisdiction
Financial Sector Deepening Africa (FSD Africa) Africa
Qianhai Financial Authority China
European Bank for Reconstruction and Development (EBRD) Europe
Consultative Group to Assist the Poor (CGAP) Global
International Monetary Fund (IMF) Global
World Bank Group Global
Qatar Development Bank Qatar