The European Union Blockchain Observatory and Forum published its January-February 2020 newsletter, which covers the activities and events in EU on topics such as blockchain and artificial intelligence. This issue of the newsletter highlights the publication of thematic report on blockchain and the future of digital assets. It also highlights the publication of a report that provides an account of the use cases in a social impact workshop that was held recently in Barcelona.
The thematic report on blockchain and the future of digital assets focuses on the emerging world of blockchain-based digital assets in all its diversity and complexity. The report covers the background on digital assets, their promise, the challenges and issues they pose, and how policy makers and authorities are reacting to the rise of these assets. The report states that EU is focused more on the risks that arise from digital assets, to the detriment of the great opportunities that they bring. It suggests that authorities should continue their efforts to ensure the healthy growth of digital assets in a safe environment and this starts with providing legal certainty for these actors, which actually means greater clarity for regulators to supervise the digital asset ecosystem. The key recommendations of the report are to develop a harmonized understanding of digital assets, determine the legal treatment of digital assets, strengthen the synergy between public authorities and private actors, and clarify regulatory oversight.
Additionally, the newsletter highlights the following issues that caught the attention of community during these months:
- Bafin guidance notice on crypto tokens
- Legal guidelines for smart derivatives contracts (equities)
- Private international law aspects of smart derivatives contracts utilizing the distributed ledger technology
- Companies that are working on distributed ledger technology solutions for capital markets
Keywords: Europe, EU, Banking, Insurance, Securities, Blockchain, Blockchain Observatory, Newsletter, Fintech, Regtech, Artificial Intelligence, EC
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting