2023 Fintech and Financing Conference & Expo

Global Financial Innovation Network (GFIN) – Regulators Launch Global Sandbox Pilot

FCA and GFIN Members | Jan 31, 2019

regulators open global sandbox GFIN - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox PilotThe Global Financial Innovation Network (GFIN) was formally launched in January 2019 by an international group of financial regulators and related organisations, including the FCA. This built on the FCA’s early 2018 proposal to create a global sandbox.

The GFIN is a network of 29 organisations committed to supporting financial innovation in the interests of consumers.

The GFIN seeks to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. This includes a pilot for firms wishing to test innovative products, services or business models across more than one jurisdiction.

It also aims to create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches.

Confirming the GFIN’s functions

The GFIN was proposed in a consultation paper in August 2018. The GFIN received 99 responses from 26 jurisdictions in response to the consultation paper. The response from industry and other international regulators was overwhelmingly positive in favour of establishing the GFIN to facilitate a new practical method of regulatory collaboration on innovation and creating an environment for cross-border testing.

Following this consultation, the GFIN has finalised terms of reference for governance and membership of the group and confirmed 3 primary functions:

  • To act as a network of regulators to collaborate and share experience of innovation in respective markets, including emerging technologies and business models, and to provide accessible regulatory contact information for firms.
  • To provide a forum for joint RegTech work and collaborative knowledge sharing/lessons learned.
  • To provide firms with an environment in which to trial cross-border solutions.

Since the end of the consultation, the GFIN has discussed further development of our core functions and next steps of the network. Alongside discussions on the sharing of experience, regulators involved agreed to launch a pilot phase of cross-border testing (for firms) and to formalise the membership and governance structure for regulators and international organisations interested in joining the Network.

See: 

 

Following the consultation feedback, the GFIN has:

  • Opened a 1-month application period for a pilot phase of cross-border testing. Interested firms are asked to submit applications to relevant participating regulators by 28 February 2019.
  • As part of the finalised terms of reference for governance and membership, expanding from the founding 12 members, the group now includes 29 organisations. Financial regulators and related organisations with a commitment to supporting innovation in the interest of consumers are invited to join.

Cross-border testing applications – pilot phase for firms

Consultation feedback indicated widespread support for creating an environment that allowed firms to simultaneously trial and scale new technologies in multiple jurisdictions, gaining real-time insight into how a product or service might operate in the market.

To support the development of cross border testing we have opened a 1-month application window for firms interested in joining a pilot cohort for cross-border testing.

Firms wishing to participate in this pilot phase must meet the application requirements of all the jurisdictions in which they would like to test. For example, a firm wishing to test in the UK, Australia and Hong Kong must independently meet the eligibility criteria, and/or other relevant standards, of the regulators in those jurisdictions.

Interested firms should note whether a particular regulator is the relevant authority for the proposed activity before applying to test in their jurisdiction.

Each regulator will decide whether a proposed test meets its individual screening criteria, areas of interest, and ability to support the activity. Each regulator will also make sure that appropriate safeguards for their jurisdiction are in place. Regulators are only responsible for tests in their jurisdictions and should consider the associated risks. We believe this is important to maintain high standards of consumer protection and market integrity in regulators’ respective jurisdictions.

Pilot tests will run for a 6-month period, unless regulators agree to extend them. We expect the pilots will run from Q2 2019.

This pilot is as much a trial for GFIN members as it will be for firms. We are looking for firms who can be flexible and agile in their participation, and can provide GFIN regulators with feedback on their experience. Firms will benefit from the opportunity to test and compete in the regulated space, and their tests will help inform the future work of the network. Over time, trials could inform regulatory authorities about potential areas of regulatory convergence (eg streamlined applications), although we stress this is a longer-term opportunity.

Since GFIN cannot override national legislation, a separate application is required to each regulator firms would like to test with. GFIN members will then coordinate with each other around the application. The deadline for testing applications is 28 February 2019.

Submit an FCA application.

Continue to the full article  --> here


NCFA Jan 2018 resize - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox PilotFF Logo 400 v3 - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilotcommunity social impact - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot




Decrypt | Stacy Elliott | Dec 7, 2022 Solana devs look to rebuild as they unwind DeFi on the network from Sam Bankman-Fried’s Serum, replace it with OpenBook, and plot a course for the future. Serum, founded in August 2020 by a consortium that included the Solana Foundation and Bankman-Fried’s FTX and trading desk Alameda Research, was a core decentralized exchange platform and liquidity provider for the burgeoning Solana DeFi ecosystem. Its order book was crucial for DeFi on Solana, integrated into virtually all of the biggest DeFi projects on the network, like Jupiter and Raydium. But its private keys were housed within FTX—which is exactly as bad as that sounds. See:  Crypto.com Halts Solana USDC and USDT Withdrawls and Deposits | $800 Million SOL Tokens Set to be Unstaked Following an apparent hack on FTX on November 11, the same day that the company filed for bankruptcy, DeFi projects on Solana rushed to cut ties with Serum out of fear that the private key that could be used to update the program had likewise been compromised. This effectively flipped the “off” switch on Solana DeFi. OpenBook: Since then, Solana developers, investors, and other stakeholders have been scrambling to turn ...
Read More
Solana forks Serum launches OpenBook - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot
IFLScience | James Felton | Dec 6, 2022 The creator of Gmail has made a prediction: the new chatbot ChatGPT will completely disrupt Google's business within a year or two, eliminating the search engine result page in the process. ChatGPT: By now, you have probably come across a number of creations from ChatGPT: an artificial intelligence (AI) based chatbot that can do everything from rewrite "Baby Got Back" in the style of Canterbury Tales to simulating its own chatbot within a chatbot. The chatbot, made open to the public last week, is surprisingly good.  Even if it hasn't yet convinced anyone that it's sentient – unlike Google's AI . The bot has a number of uses, including writing useable code and looking for errors in code created by amateur humans. The chatbot uses something called "reinforcement learning from human feedback" to achieve the impressive natural language processing it does.  "As the model receives more and more feedback, it uses this information to adjust its internal parameters and improve its performance. This iterative process continues until the model reaches a satisfactory level of performance on the task," the bot continued. Disrupt Google? As well as providing more detailed results than Google, and ...
Read More
Pexels Kindel Media AI bot - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot
Dec 8, 2022 Cryptocurrency index funds are an excellent way to invest in crypto. Index funds are excellent investments because of their accessibility, simplicity, and return rates. Cryptocurrency index funds offer the benefits of traditional investment vehicles like mutual funds and exchange-traded funds. But there is a problem with cryptocurrency: it's very risky to invest in an individual coin because of the volatile price fluctuations and lack of regulation. You can make investments in cryptocurrencies like Bitcoin, Ethereum, or Solana. Investors can avoid the hassle and expense of buying a large number of individual stocks by purchasing an index fund. Diversifying your cryptocurrency assets is difficult to do in regular brokerage accounts, let alone retirement plans. This causes some friction if you're new to the crypto world. Because to be an expert in trading, you have to learn how to indentify like a pro trader. Therefore, the reason investing in indexes makes it easy to buy into crypto is because they make it easy to buy indexes. If you're unsure about how crypto index funds work, don't worry! We'll cover everything we need to know about how to invest in Cryptocurrency Index Funds. So let’s get started! What are Cryptocurrency ...
Read More
Pexels Anna Nekrashevich index trading - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot
TechCrunch | Mary Ann Azevedo | Dec 7, 2022 Plaid, a Fintech decacorn, is laying off 260 employees, or about 20% of its workforce, the company announced today In April of 2021, Plaid raised a $425 million Series D led by Altimeter Capital, which valued the company at around $13.4 billion. This was after its deal to be acquired by Visa for $5.3 billion fell through due to regulatory concerns. Hired ahead of revenue growth: In a letter to employees that was posted on Plaid’s website, CEO and co-founder Zach Perret said the company saw a rapid increase in usage by its existing customers, a large number of new customers and “substantial revenue acceleration” during COVID.  As such, the company “hired aggressively” to meet customer demand and invest in new products. However, macroeconomic shifts resulted in Plaid customers experiencing “slower-than-expected growth,” causing the company to backpedal. See:  Plaid Officially Opens it’s Canadian Office and Announces RBC Data Sharing Agreement What they get: Severance: All impacted employees will get 16 weeks of base pay in severance. Those who have been with Plaid for more than one year will get additional weeks.  Plaid will also be paying the cash equivalent of six months ...
Read More
Layoffs - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot
Quartz | Nate DiCamillo | Dec 6, 2022 Crypto traders don’t have to move their funds offshore to evade US taxes, as long as the US government allows wash trading of the nascent asset class. Tax loss harvesting: A group of economists from Cornell University, the University of North Carolina, and Tel Aviv University have discovered that every time the US increases crypto tax scrutiny, trading activity rises at US-based exchanges. That’s because traders are selling crypto, recording losses on their taxes, and buying it back to avoid incurring any actual losses. The economists released their findings this week in a working paper published by the National Bureau of Economic Research. It is illegal for stock traders to engage in wash trading, which occurs when they buy and sell an equity within a 30-day period before or after the sale. This rule doesn’t exist for crypto in part because of the scattered regulatory approach the US has taken towards it, the economists argue. See:  Crypto Pragmatist: Checkout these free crypto (trading) tools Regulatory confusion: The IRS, for instance, treats crypto as property, while the Commodity Futures Trading Commision, which regulates derivatives markets, treats it as a commodity. Meanwhile, the SEC ...
Read More
Unsplash Wance Paleri trading - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot
Quant | Rebecca Hackworth | Nov 28, 2022 Alternative fund managers are starting to recognise the benefits of tokenised funds - a new dawn for alternatives For fund managers, the potential to tap into an even wider cohort of investors is a significant opportunity. A recent study of 100 European fund managers by Madrid-based tokenisation platform, Token City, found that 52% are looking at tokenisation and 73% plan to invest in the next three years. ​“Regarding adoption, more than 85% of fund managers think if they don’t consider tokenisation, they risk being left behind,” says Yael Oaknin, Founder and CEO of Token City. “Tokenisation could improve several areas within asset management such as issuance, exchange and servicing. Potential benefits include improved access to, and personalisation of, investment solutions,” she adds. It gives managers the option to provide fractional ownership of their funds in an evergreen structure and offers accredited investors the chance to invest more easily.  Evergreen funds have no termination date. They allow managers to re-invest capital in companies with the most attractive growth prospects, while avoiding missing the additional upside when they IPO. Simpler redemption:  additional benefit is that the underlying smart contracts controlling economic ownership ensure that ...
Read More
Fund Tokenization - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot
Crowdfund Insider | Alex Zeltcer | Nov 28, 2022 There’s no doubt in the minds of financial organizations and anti-laundering regulators that Know Your Customer (KYC) verified accounts prevent fraudulent activity– and that’s exactly the problem. Then:  In the early 1990s, governments around the globe had a growing concern about preventing the increasingly connected banking system from harboring international transfers of illicit funds. To combat this, they introduced KYC verification– a straightforward method of ensuring that the person a banker was speaking with was who they claimed to be. In practice, new banking customers had to present various documents, set forth by their local regulatory body, to open an account in their own name. In addition, it made it difficult for fraudsters using forged documentation to physically go from bank to bank. See:  Equifax Partners with Oasis Labs to Issue Anonymous KYC Credentials to DeFi and NFT Users Now - KYC verification in the digital era:   In line with anti-money laundering (AML) frameworks, cryptocurrency-related organizations, such as marketplaces and trading platforms, are considered a money service business (MSB) by the US government. As such, MSBs are legally required to KYC any account that reaches a daily trading threshold. In the ...
Read More
KYC verification does not prevent fraud - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot
Techstars Toronto | Sunil Sharma | Dec 7, 2022 We are excited to invite you to Techstars Toronto's seventh Demo Day Showcase! Join us on December 15th at 12:00 PM EST to meet the 12 companies graduating from the 2022 Winter Cohort. This Demo Day Showcase will give the investor community a look at 12 companies poised to disrupt industries and change the world through their technology. With our incredible network of mentors, investors, and partners across Canada already in place, Techstars Toronto sets out to bring the world’s best to Canada. This class spans from Canada to Africa. Investors take note, these companies mean business. Their traction and team size are seldom seen at this early stage, and their valuations are starting to soar, and surpassing a combined $100M USD already, which we believe is just the start. Techstars Toronto Winter 2022 Demo Day Dec 15th 12:00pm — 1:00pm EST Register for this online event Learn more about each of our 12 companies: Raenest - Modern financial management tool for African remote workforce talent and global businesses. Fez - Perfecting the last mile, one delivery at a time. Renda - Providing fulfillment and logistics infrastructure that enables and empowers ...
Read More
Techstarts Toronto DEMO Day 2022 Winter - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot
CryptoPotato | Chayanika Deka  | Dec 5, 2022 The long-running legal spat between Ripple and the SEC and Ripple is drawing close after two years. Stuart Alderoty, General Counsel of Ripple, confirmed the company’s “final submission,” urging the court to grant judgment in its favor and said that Ripple is proud of the defense it has mounted on behalf of the entire digital asset industry. According to the court document, the San Francisco-based blockchain company asserted that the United States Securities and Exchange Commission (SEC) has failed to prove the existence of any investment contracts governing the defendants’ offers and sales of XRP between the period 2013 and 2020. Ripple also said that both its founders are entitled to summary judgment on their decision to sell on foreign exchanges and added that the SEC could not provide any material fact to the contrary. See:  Legal experts say “This Is It” moment for XRP in Ripple lawsuit, Brad Garlinghouse CEO XRP took to Twitter to congratulate the team: “I said it on day 1, we will aggressively fight to get clear rules for the entire industry in the U.S. Congrats to all of Team Ripple for getting us to this point ...
Read More
XRP vs SEC - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot
Brookings | Dec 7, 2022 Tuesday, December 20, 2022, 9:00 - 10:00 a.m. EST Online: https://www.brookings.edu/events/a-debate-should-crypto-be-regulated-by-the-federal-government/ The explosion of interest in cryptocurrencies and the implosion of cryptocurrency exchange FTX shine a spotlight on the fact that today’s regulatory apparatus is ill-equipped to oversee this new financial technology. The Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the Federal Reserve are all wrestling with how best to oversee crypto. Several proposals are circulating in Congress. One camp argues that the risks to consumers and to financial stability demand a new rulebook. Another argues that regulating crypto would give it legitimacy and that it would be best to leave it alone. Debate moderator:  Kelly Evans, Anchor, CNBC's "The Exchange" YES, crypto should be regulated Peter Conti-Brown, Class of 1965 Associate Professor of Financial Regulation, Wharton School, University of Pennsylvania; Nonresident Fellow, Economic Studies, Brookings See:  Hester Peirce Reaffirms That the SEC’s Current Approach to Crypto Is ‘Not a Good Way of Regulating’ NO, crypto should not be regulated Stephen G. Cecchetti, Rosen Family Chair in International Finance, Brandeis International Business School Register for this virtual debate on Dec 20 --> ...
Read More
Brookings debate Dec 20 should crypto be regulated by the federal government - Global Financial Innovation Network (GFIN) - Regulators Launch Global Sandbox Pilot

 

Leave a Reply

Your email address will not be published. Required fields are marked *

twenty + seven =