The European Union Blockchain Observatory and Forum, an EC initiative, published its June newsletter, which offers an update on the entity's activities. The newsletter covers the activities and events in EU on topics such as blockchain and artificial intelligence. This issue of the newsletter contains reports on the recent workshops on governance and on digital assets, covers the current technology-related issues in focus, and announces the publication of the final version of the academic research paper on digital assets. Prepared by the University of Southampton, one of the Observatory’s Academic Partners, topics covered in the paper include tokens and transactions, fungible and non-fungible token standards, initial coin offerings, and digital asset ecosystems.
The research paper on digital assets highlights that regulators at the EU level have been working on clarifying the situation with respect to the link with legislation applicable to traditional securities. Allowing the "intrusion" of regulators might be considered an attack to the decentralized principles of blockchains that could slow down the impact EU companies and organizations could get from the technology. However, it is believed that this is not the case here, and that appropriate regulation is positive and will benefit all actors. On this topic, an interesting research and development direction is the implementation of regulatory frameworks in blockchains—in the same way that other approaches have explored the use of blockchains for verification and compliance (immutable records for e-government, ownership of real-world assets, GDPR compliance). If the rules of compliance can be encoded and deployed into a blockchain, it would be possible to leverage the transparency and trust capabilities of blockchains beyond the implementation of a closed economic system and into the interaction of these ecosystems with regulatory frameworks.
As mentioned in the newsletter, the issues of interest among the community during the month include the following:
- Facebook unveils Libra cryptocurrency, targeting 1.7 billion unbanked
- Italy’s banking sector will boost reconciliations with blockchain
- Iceland’s currency will be first in Europe to be traded as e-money
- Russia’s central bank is considering launching a digital currency
- French retail chain Carrefour registers sales boost following blockchain integration
- EU stimulates digital innovation by increasing the availability of publicly funded data
- Research Paper on Digital Assets (PDF)
- Report on Governance Workshop (PDF)
- Report on Digital Assets Workshop (PDF)
- EU Blockchain Observatory and Forum
Keywords: EU, Banking, Insurance, Securities, Blockchain, Newsletter, Blockchain Observatory, Fintech, Regtech, Digital Assets, Blockchain Governance, Compliance, EC
APRA announced that it is resuming consultation on the confidentiality of data submitted to APRA by the authorized deposit-taking institutions.
US Agencies (FDIC, FED, and OCC) finalized two rules, which are either identical or substantially similar to the interim final rules in effect and issued earlier this year.
EIOPA is consulting on a supervisory statement on the use of risk mitigation techniques by insurance and reinsurance undertakings.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
ESMA announced that it will recognize three central counterparties (CCPs) established in the UK as third-country CCPs, from January 01, 2021.
PRA published Version 02.04 of the PRA110 liquidity metric monitoring tool (PRA110 LMM tool).
BoE and FCA are supporting and encouraging liquidity providers in the sterling swaps market to adopt new quoting conventions for inter-dealer trading based on SONIA, instead of LIBOR, from October 27, 2020.
Deutsche Bundesbank published special schema files for securities holdings statistics (SHS), along with a document on the XML format description.
FSB confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System (GLEIS) as the International Governance Body for the globally harmonized identifiers used to track over-the-counter (OTC) derivatives transactions, with effect from October 01, 2020.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.