US and UK regulatory authorities partner to study fintech |

US and UK regulatory authorities partner to study fintech

Peter Terlato 23 February 2018 NEWS

One area of fintech that is attracting mass business and consumer interest right now is cryptocurrencies.

Leading financial regulation authorities in the United States and United Kingdom have partnered to collaborate on a range of studies that will focus on advances within the burgeoning financial technology (fintech) industry.

U.S. Commodity Futures Trading Commission (CFTC) and the UK’s Financial Conduct Authority (FCA) signed an agreement this week that sees LabCFTC and FCA Innovate share information and work to facilitate innovation.

The Cooperation Arrangement on Financial Technology Innovation (Fintech Arrangement) focuses on information-sharing regarding fintech market trends and developments. It also facilitates referrals of fintech companies interested in entering the others’ market, and sharing information and insight derived from each authority’s relevant sandbox, proof of concept, or innovation competitions.

LabCFTC and FCA Innovate joint statement

LabCFTC was launched in 2017 to identify and promote responsible fintech developments, utilize emerging technologies for regulatory benefits and encourage competition in the digital markets that the CFTC oversees.

Similarly, FCA Innovate, established in 2014, operates independently of the government and works to assist businesses with innovative ideas navigate the regulatory landscape and engage with the UK regulator.

“As our first agreement of this kind with a US regulator, we look forward to working with LabCFTC in assisting firms, both here in the UK and in the US, who want to scale and expand internationally in our respective markets,” FCA chief executive Andrew Bailey said.

This is the first fintech-driven arrangement for the CFTC with a non-US counterpart.

The FCA and CFTC plan to host a joint event in London to demonstrate how firms can engage with regulators.

One area of fintech that is attracting mass business and consumer interest right now is cryptocurrencies.

In October last year, LabCFTC released a primer on virtual currencies. This was the first in a series of releases aimed at providing fundamental and essential information about fintech innovations.

Earlier this month, after receiving numerous complaints, the CFTC issued a consumer advisory warning against “pump-and-dump” schemes that are becoming more prevalent among virtual currencies and digital tokens.

Additionally, the U.S. Securities and Exchange Commission’s (SEC) compliance office highlighted the need to carefully monitor risks associated with initial coin offerings (ICOs) in 2018.

The department also published its annual list of priorities after SEC chairman Jay Clayton and CFTC chairman J. Christopher Giancarlo fielded questions concerning the oversight role of U.S. regulators with regards to virtual currencies at an open session Senate Committee hearing in Washington D.C.

Despite a crackdown by global central banks, some U.S. states issuing their own guidelines and others taking legal action against firms, the U.S. government is in no rush to regulate the burgeoning industry anytime soon.

You can learn all about different exchanges, understand exactly how to buy and sell cryptocurrencies, calculate your taxes, discover digital wallets to hold assets and explore a list of all the alternative coins on the market.

This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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