A Happy New Year and welcome to our first Fintech Global FS Regulatory Round-Up of 2024. In this regular post, we cover FinTech-related financial services regulatory developments to the week ending 5 January 2024.

ICYMI

Global

IMF Note: Digital Money, cross-border payments, international reserves, and the global financial safety net

The International Monetary Fund (IMF) has published a note which explores the possible implications of digital money and assets for the international monetary system from the perspective of cross-border payments, international reserves and the supply of global safe assets, and the global financial safety net. The findings of the paper suggest that, to the extent that digital money and assets lead to higher transaction efficiency, it could become more broadly adopted for cross-border payment purposes, alongside existing currencies. [5 Jan 2024]

#DigitalMoney #Payments

IOSCO publishes final policy recommendations for DeFi

IOSCO has published its final report with policy recommendations for decentralised finance (DeFi). The report sets out policy recommendations to address market integrity and investor protection concerns arising from DeFi by supporting greater consistency of regulatory frameworks and oversight in member jurisdictions. The recommendations cover six key areas: understanding DeFi arrangements and structures; achieving common standards of regulatory outcomes; identification and management of key risks; clear, accurate and comprehensive disclosures; enforcement of applicable laws; and cross-border cooperation.

The DeFi policy recommendations are complementary to the policy recommendations for crypto and digital asset markets issued in November 2023. The two sets of IOSCO recommendations have been developed in accordance with IOSCO's cryptoasset roadmap published in July 2022. Concurrently with the publication of this report, IOSCO has published an ‘umbrella note‘ to explain the interoperability between the two sets of recommendations. [19 Dec 2023]

#DeFi #Crypto #DigitalAssets

UK

BoE: Minutes of the CBDC Technology Forum – October 2023

The Bank of England (BoE) has published the minutes of the Central Bank Digital Currency (CBDC) Technology Forum from 13 October 2023. At the forum:

  • the Chair stated that a summary of responses to the BoE's and HM Treasury's (HMT's) consultation paper on the digital pound, as well as feedback on the BoE's technology working paper on the digital pound, would be published in due course;
  • the BoE noted the creation of temporary subgroups to help explore the design options for the digital pound architecture; and
  • the four subgroups set out high level information regarding their objectives, expected outputs and timelines.

The next meeting of the Technology Forum is expected to be in January 2024. [5 Jan 2024]

#CBDC #DigitalPound

DBT: Digital Markets, Competition and Consumers Bill supporting documentation

The Department for Business and Trade (DBT) has published the updated supporting documentation to the Digital Markets, Competition and Consumers Bill:

#DigitalMarkets

Lords: Answer to written questions on the ability of UK crypto and digital asset businesses to open UK bank accounts

For HMT, Baroness Vere of Norbiton has provided a single written statement in response to the following questions posed by Lord Goddard of Stockport, regarding:

#Crypto #DigitalAssets

Draft SI: The FSMA 2000 (Regulated Activities) (Amendment) Order 2024

The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2024 has been published. This draft statutory instrument (SI) will amend the regulatory framework, to make operating a pension dashboard service which connects to the Money and Pensions Service (MaPS) dashboards digital architecture a regulated activity. An explanatory memorandum accompanies the draft SI. [21 Dec 2023]

#PensionsDashboard

SI: Online Safety Act 2023 (Commencement No. 2) Regulations

The Online Safety Act 2023 (Commencement No. 2) Regulations 2023 has been made. This SI brings into force, from 10 January 2024 and 1 April 2024, various provisions of the Online Safety Act 2023 (OSA 2023) including but not limited to, sections 38 to 40 (duties about fraudulent advertising). [21 Dec 2023]

#OSA2023

FCA/PSR/HMT/CMA: JROC progress update and VRP consultation

The Joint Regulatory Oversight Committee (JROC), which is led by the FCA and the Payment Systems Regulator (PSR), with HM Treasury (HMT) and the Competition and Markets Authority (CMA) as the other members, has published an update on actions set out in the JROC April 2023 Report to enable the next phase of open banking in the UK.

The publication also includes a phased roadmap, comprising of five themes of activities to be delivered over the next two years and an update on HM Government's (HMG's) thinking on a long-term regulatory framework once the foundations for the next phase of open banking are in place. JROC will publish a progress update in Q4 2023.

In addition, JROC has published a response to the Variable Recurring Payments (VRP) Working Group's blueprint for rolling out non-sweeping VRP (ie payments between a customer and a business). This seeks to ensure that consumers and businesses can benefit from innovative, flexible payment methods across a range of different sectors.

JROC is also considering the Future Entity Working Group's recommendations for the design and implementation of the future entity. JROC will make a decision as to its recommended structure, governance and funding model early next year. It expects to publish this decision and the immediate steps which will be taken to establish the future entity, in Q1 2024.

In line with JROC's recommendations, the PSR and JROC have also launched a consultation on the commercial model needed to support the expansion of VRP. Responses to the consultation are requested by 2 February 2024. [19 Dec 2023]

#OpenBanking #VRP

FCA/PRA/BoE: 2023 CBEST thematic report

The FCA, the PRA and the Bank of England (BoE) have published the latest annual CBEST thematic report. The annual CBEST thematic is intended to inform the sector on the findings and lessons learned from the CBEST programme, which assesses the cyber resilience of systemic financial institutions through live testing performed in their corporate networks. The report highlights the importance of building strong cyber hygiene and the need for firms and FMIs to simulate a range of cyber testing scenarios to remain resilient to threats. [19 Dec 2023]

#CyberResilience #CBEST #FMIs

PSR PS23/4: APP scams reimbursement policy statement

The PSR has published Policy Statement 23/4 – Fighting authorised push payment scams: final decision (PS23/4) which sets out the final detailed parameters of the reimbursement requirement policy in relation to authorised push payment (APP) scams.

PS23/4 covers the following policy:

  • the consumer standard of caution exception, which narrows the consideration of gross negligence to four specific circumstances, including the requirement to have regard to interventions, prompt notification, responding to requests for information and police reporting; this exception does not apply to vulnerable consumers;
  • allowing sending payment service providers (PSPs) to apply an excess up to £100 to a claim under this policy, except for claims made by vulnerable consumers; and
  • setting the maximum level of mandatory reimbursement at £415,000.

The reimbursement requirement will come into effect on 7 October 2024.

The PSR has also published the three legal instruments which require Pay.UK and all payment firms that use Faster Payments Scheme (FPS) to implement the requirements of the reimbursement policy:

#APPScams #Payments

SI: The Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023

The Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2023 has been laid before Parliament. These Regulations, which are made under FSMA 2023, provide for the testing of the use of developing technology in the carrying on of FMI activities. These provisions are referred to as a ‘digital securities sandbox' or ‘DSS'. The Regulations come into force on 8 January 2024. [18 Dec 2023]

#FSMA2023 #DigitalSandbox

SI: The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023

The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 has been made. These Regulations amend the Payment and Electronic Money Institution Insolvency Regulations 2021, so that they are extended to limited liability partnerships (LLPs) formed under the law of Scotland. They also extend the Regulations to payment institutions and electronic money institutions (EMIs) incorporated in, or formed under, the law of Northern Ireland. The Regulations come into force on 4 January 2024. [18 Dec 2023]

#Payments #Emoney

Europe

ECB to stress test banks' ability to recover from cyber-attacks

The European Central Bank (ECB) has announced that it will conduct a cyber resilience stress test on 109 directly supervised banks in 2024. The exercise will assess how banks respond to and recover from a cyberattack, rather than their ability to prevent it. Under the stress test scenario, a cyberattack will succeed in disrupting daily business operations. Banks will then test their response and recovery measures Supervisors will subsequently assess the extent to which banks can cope under such a scenario.

As part of the exercise, 28 banks will undergo an enhanced assessment for which they will submit additional information on how they coped with the cyberattack. This sample covers different business models and geographies to provide a meaningful reflection of the euro area banking system and ensure there is efficient coordination with other supervisory activities.

The exercise's main findings will be communicated in the summer of 2024. [3 Jan 2024]

#Cyber #StessTest

ECB: Update on the work of the digital euro scheme's RDG

The ECB has published a report summarising the progress of the digital euro scheme's Rulebook Development Group (RDG).

Since the last update in June 2023, the RDG has drafted the first chapters of the digital euro rulebook in line with the legislative proposal and the digital euro design decisions approved by the Governing Council of the ECB. This first draft of the rulebook is an intermediate version which covers:

  • the functional and operational models, including the end-to-end flows describing the functioning of all use cases and services relating to a digital euro;
  • the technical scheme requirements depicting a high-level architecture and standards which should potentially be considered in a digital euro landscape; and
  • the adherence model setting out the rights and obligations of scheme members in accordance with the draft legislation. [3 Jan 2024]

#DigitalEuro #CBDC

EBA consults on Guidelines to ensure the implementation of EU and national sanctions

The European Banking Authority (EBA) has published a consultation paper (CP) on two sets of Guidelines on internal policies, procedures and controls to ensure the implementation of EU and national sanctions/restrictive measures. One set of draft Guidelines is addressed to financial institutions and prudential supervisors and sets common, regulatory expectations regarding the role of senior management, internal governance and risk management in the restrictive measures context. A second set of draft Guidelines, sets out what payment service providers (PSPs) and cryptoasset service providers (CASPs) should do to be able to comply with restrictive measures when performing transfers of funds and cryptoassets. These focus, in particular, on know your customer (KYC), screening and due diligence.

Responses are requested by 25 March 2024. The EBA will hold a virtual public hearing on the consultation paper on 8 February 2024. [21 Dec 2023]

#Crypto #KYC

EIOPA: Single Programming Document 

The European Insurance and Occupational Pensions Authority (EIOPA) has published the Single Programming Document which sets out the activities EIOPA will undertake in the period 2024-2026. The publication also includes the Annual Work Programme 2024.

The strategic focus of EIOPA in 2024 will continue to be on the supervisory convergence, sustainable finance and digital transformation. EIOPA is also expected to deliver simultaneously policy work and implementation for a number of legislative initiatives including the Digital Operational Resilience Act (DORA), Solvency II Review, Insurance Recovery and Resolution Directive (IRRD), European Single Access Point (ESAP), the AI Act, and Cyber Security and Information Security Regulations, and possible work stemming from the Retail Investment Strategy. [20 Dec 2023]

#DORA #AI #Cyber

ECB: Supervisory priorities for 2024-2026

The European Central Bank (ECB) has published its supervisory priorities for 2024-2026 as well as the outcome of the 2023 risk identification and assessment exercise, which includes, in the context of the Single Supervisory Mechanism (SSM), making further progress in their digital transformation and building robust operational resilience frameworks (Priority 3).

The ECB has also published details of the Supervisory Review and Evaluation Process (SREP) methodology applied to significant institutions under the direct supervision of the ECB. [19 Dec 2023]

#DigitalTransformation #OpRes

Hong Kong

FSTB and HKMA jointly launch public consultation on legislative proposal to regulate issuers of fiat-referenced stablecoins and announce plan to introduce sandbox arrangements

The Financial Services and the Treasury Bureau (FSTB) and the HKMA have jointly issued a consultation paper to gather views on the legislative proposal to regulate issuers of stablecoins. Feedback on the proposal is required to be submitted by 29 February 2024.

The Government considers that a regulatory regime should be introduced for fiat-referenced stablecoin issuers, adopting a risk-based and agile approach that will facilitate proper management of the potential monetary and financial stability risks, and provide transparent and suitable guardrails. This approach received general support in an earlier round of consultation which concluded in January 2023 (see our previous update).

The legislative proposal in the present consultation paper has taken into account the feedback received on the earlier consultation, the ongoing engagement exercises with stakeholders, local market conditions and needs, as well as applicable international standards. The key proposals include:

  • Introducing a new piece of legislation to implement a licensing regime requiring all fiat-referenced stablecoin issuers that meet certain conditions (ie, who (i) issue an fiat-referenced stablecoin in Hong Kong; (ii) issue a HKD-referenced stablecoin; or (iii) actively market their issuance of fiat-referenced stablecoins to the public of Hong Kong) to be licensed by the HKMA;
  • Requiring that fiat-referenced stablecoins be offered only by specified licensed entities (ie, licensed fiat-referenced stablecoin issuers, authorised institutions, licensed corporations and licensed virtual asset trading platforms), and only stablecoins licensed by the HKMA can be offered to retail investors;
  • Prohibiting the advertising of (i) fiat-referenced stablecoin issuance by unlicensed entities; or (ii) non-specified licensed entities' offering of such stablecoins;
  • Providing necessary powers for the authorities to adjust the parameters of in-scope stablecoins and activities having regard to the rapid development of the virtual asset market; and
  • Providing a transitional arrangement to facilitate the implementation of the regulatory regime.

The HKMA will introduce a sandbox arrangement for communicating supervisory expectations and guidance on compliance to entities having a genuine interest in (and a reasonable plan on) issuing fiat-referenced stablecoins in Hong Kong, as well as obtaining their feedback on the proposed regulatory requirements, with a view to facilitating the subsequent implementation of the regulatory regime and ensuring that it is fit-for-purpose. Details of the sandbox arrangement will be announced separately.

The HKMA Chief Executive, Mr Eddie Yue, has published an inSight article to discuss the potential use cases and risks of stablecoins and thoughts regarding the proposed regulatory regime. [27 Dec 2023]

#Stablecoins #Sandbox

SFC issues circular on requirements for authorising funds with specified exposure to VAs for public offering in Hong Kong

The SFC has issued a circular to set out the requirements under which it would consider authorising investment funds with exposure to virtual assets (VAs) of more than 10% of their net asset value (NAV) for public offering in Hong Kong (SFC-authorised VA Funds).

The circular supersedes the Circular on Virtual Asset Futures Exchange Traded Funds issued on 31 October 2022 (see our previous update).

The circular is not applicable to recognised jurisdiction schemes (including undertakings for the collective investment in transferable securities (UCITS) funds) and those under mutual recognition of funds arrangements, save for the prior consultation and approval requirement under paragraph 29 of the circular.

The circular sets out the requirements for SFC-authorised funds to:

  • Invest directly in the same spot VA tokens accessible to the Hong Kong public for trading on SFC-licensed VATPs (ie, direct exposure); and/or
  • Acquire indirect investment exposure to such VA (ie, indirect exposure), for example, through futures traded on conventional regulated futures exchanges and other exchange-traded products.

SFC-authorised VA Funds should meet the applicable requirements in the Overarching Principles Section and the Code on Unit Trusts and Mutual Funds in the SFC Handbook for Unit Trusts and Mutual Funds, Investment-Linked Assurance Schemes and Unlisted Structured Investment Products. Additional requirements are set out in the present circular as well as the SFC-HKMA joint circular issued on 22 December 2023 (see ‘SFC and HKMA further updates joint circular on intermediaries' VA-related activities' below) (such as those relating to distribution).

The requirements in the present circular include those relating to management companies, eligible underlying VAs, investment strategy, transactions and direct acquisitions of spot VAs, custody, valuation, service providers, disclosure and investor education.

Prior consultation with and approval of the SFC are required for both new and existing funds intending to have VA exposure of more than 10% of their NAV. [22 Dec 2023]

#VirtualAssets

SFC and HKMA further updates joint circular on intermediaries' VA-related activities

In light of the publication of the SFC circular on authorised funds with exposure to virtual assets (VAs) on 22 December 2023 (see ‘SFC issues circular on requirements for authorising funds with specified exposure to VAs for public offering in Hong Kong' above), the SFC and the HKMA have further updated their joint circular (with appendices) to provide updated guidance regarding the distribution by intermediaries of investment products with exposure to VAs.

The updated joint circular supersedes the joint circular issued on 20 October 2023 (see our previous update).

The updated joint circular states that the SFC and the HKMA have revised their VA policy in light of the latest market developments, where the SFC has authorised VA futures exchange traded funds (ETFs) and is prepared to accept applications for the authorisation of other funds with exposure to VAs, including VA spot ETFs. Specifically, the updated joint circular:

  • clearly specifies the requirements applicable to intermediaries when they distribute VA-related products; and
  • sets out the standards of conduct expected of intermediaries when distributing VA funds authorised by the SFC.

VA funds authorised by the SFC for public offering will not be restricted to ‘professional investors only'. The updated joint circular sets out the requirements that apply to the distribution of such funds. Different requirements apply to funds that are listed and traded on the Stock Exchange of Hong Kong, and funds that are not listed (or those that are listed but with trading in their fund units conducted off exchange).

As with the joint circular of 20 October 2023, the updated circular continues to cover intermediaries' provision of VA dealing services, asset management services in respect of VAs, and VA advisory services. [22 Dec 2023]

#VirtualAssets

HKMA issues circular on managing cyber risk associated with third-party service providers

The HKMA has issued a circular on sound practices for managing cyber risk associated with the use of third-party service providers with a view to assisting authorised institutions (AIs) in strengthening their overall cyber resilience. The sound practices have been identified from a round of thematic examinations conducted by the HKMA in 2023.

AIs are expected to review their existing controls to manage cyber risk associated with third parties against the guidance. Where gaps are identified, they should consider applying the sound practices in a manner commensurate with their cyber risk exposures and the level of reliance on third parties.

As stated in the HKMA's various Supervisory Policy Manual modules, including ‘TM-G-1 General Principles for Technology Risk Management' and ‘OR-2 Operational Resilience', AIs are required to put in place effective cyber defence covering their own operations as well as linkages with third-party service providers. AIs should (among other things):

  • Ensure sufficient emphasis on cyber risk associated with third parties in risk governance framework;
  • Holistically identify, assess and mitigate cyber risk throughout the third-party management lifecycle;
  • Assess supply chain risks associated with third parties supporting critical operations;
  • Expand cyber threat intelligence monitoring to cover key third parties and actively share intelligence with peer institutions;
  • Strengthen the preparedness for supply chain attacks with scenario-based response strategies and regular drills; and
  • Continuously enhance cyber defence capabilities through adopting the latest international standards, practices and technologies.

The HKMA will continue to monitor international and industry developments in third-party cyber risk management and provide further guidance to the industry as appropriate. [21 Dec 2023]

#Cyber #Outsourcing #OpRes

HKMA announces launch of Interbank Account Data Sharing pilot programme on 1 January 2024

The HKMA has announced the launch of the pilot programme of the Interbank Account Data Sharing initiative on 1 January 2024. This initiative is aimed at allowing customers to securely and efficiently share their bank account data with other banks subject to their consent.

Earlier in 2023, the HKMA's Fintech Facilitation Office completed a preliminary study of the initiative in collaboration with the Hong Kong Association of Banks and the banking industry. The study findings suggested that sharing customer bank account data between banks could help digitalise banking operations, strengthen risk management of banks, and enhance customer experience. The rules and standards facilitating interbank customer-consented data sharing were developed through the study, covering retail, corporate and small and medium-sized enterprise customer segments. In August 2023, the HKMA issued a circular to invite selected licensed banks to participate in the pilot programme (see our previous update).

28 banks are participating in the pilot programme, covering deposit account information, (namely account availability, status, balance, and transaction details). It is expected that the banks will gradually develop new and innovative banking services, such as streamlined loan applications, consolidated account views and tailored data-driven services.

The HKMA considers that by enabling consent-based and secure interbank account data sharing, both banks and customers will benefit from improved efficiency, lowered cost and innovative digital services and solutions. The HKMA will monitor the implementation progress and market developments, and further formulate a possible implementation approach of the initiative in the future. [21 Dec 2023]

#InterbankDataSharing

HKEX publishes Compliance Bulletin (Issue no. 10) on current regulatory issues

The HKEX has published the tenth issue of its Compliance Bulletin  to provide exchange participants with a better understanding of its enforcement work and regulatory expectations in relation to specific issues.

This issue sets out the relevant requirements and discusses the common deficiencies identified from participants in a number of areas, including an exchange participant's responsibility to ensure the integrity of electronic trading system in use – it has been observed that a few exchange participants fail to recognise their responsibilities to manage and supervise third party system vendors, and the need to have adequate and effective internal control measures in place to preserve the integrity of their trading system in use to ensure compliance with the relevant requirements at all times. Reminders of the key steps that should be taken are set out.

The HKEX notes that the requirements and examples set out in the bulletin are not exhaustive and that participants should always take into consideration their own circumstances to ensure full compliance with the relevant rules and requirements (and, where appropriate, seek their own professional advice on their specific situation). The HKEX strongly advises participants to review their current set up and implement appropriate measures to strengthen their controls. Where necessary, they should take appropriate action to address any potential rule breaches or deficiencies. [21 Dec 2023]

#ElectronicTrading

HKMA issues circular on consumer protection in respect of digital marketing activities

The HKMA has issued a circular to share key observations and sound practices identified in its supervisory work on consumer protection in respect of digital marketing activities. Authorised institutions (AIs) should review their digital marketing activities and make necessary improvements (if any) to ensure that such activities are designed and conducted in such a way that can uphold consumer protection.

The HKMA notes that digital channels (such as third-party digital platforms and social media influencers) are gaining more prominence as marketing and promotion channels of financial institutions. AIs should implement appropriate consumer protection measures when conducting marketing activities through these digital channels.

The HKMA recently completed a thematic review on the digital marketing activities of general banking products (such as bank accounts, personal loans, and credit cards) with a focus on consumer protection. The HKMA identified common issues that AIs should address, including (among other things) the review of marketing materials, selection of third parties (such as personal financial service platforms and influencers), editorial controls over third-party marketing materials, informed decision making by customers, and influencer marketing. The HKMA also observed some sound practices during the review which AIs may find useful.

This follows the publication by the industry associations of the revised Code of Banking Practice on 7 December 2023 (see our previous update), which included enhancements to customer experience and protection in the digital banking environment. [20 Dec 2023]

#DigitalMarketing

SFC warns public of suspected VA-related fraud

The SFC has warned the public of suspected virtual asset (VA)-related frauds involving entities operating under the names of ‘LonShiX' and ‘BitBank (Global) Financial Holding Group'. The names were placed on the SFC's Suspicious Virtual Asset Trading Platforms alert list on 20 December 2023.

At the SFC's request, the Hong Kong Police Force has taken steps to block access to the websites of LonShiX and BitBank (Global) Financial Holding Group, as well as relevant X (formerly known as Twitter) accounts.

LonShiX claims to offer digital currency, foreign exchange and other investment services through its platform at https://lonshix.com/. It claims to be located in Hong Kong with a fake address on its website. It also lures investors to open investment accounts via individuals falsely claiming to be investment professionals authorised by banks on social media platforms and instant messaging apps.

Bitbank (Global) Financial Holding Group claims to be a digital asset trading platform at the websites of www.bitbank.world and bitbanksupport.zendesk.com/hc/en-us. The SFC notes that it adopts a name similar to that of a Japan-based cryptocurrency exchange, when in fact they are not associated. The SFC suspects that it may be disseminating false and misleading information about itself and its business through online channels by falsely claiming that it has obtained SFC licences to conduct specified regulated activities and is applying for a virtual asset service provider's licence. [20 Dec 2023]

#Fraud #VirtualAssets

India

RBI: Deputy Governor meets MD & CEOs of CICs

The RBI has summarised a meeting between its Deputy Governor and Managing Directors (MDs) and Chief Executive Officers (CEOs) of all the Credit Information Companies (CICs). Following a rise in customer complaints related to credit information and concerns that emerged during the RBI's supervisory assessment, the following were noted as areas of focus for CICs: improving the data quality; timely redressal of customer complaints; strengthening of internal ombudsman framework; streamlining the process for handling data correction requests; strengthening of cybersecurity and data privacy through robust information security governance framework; and tackling concerns arising out of usage of data for consulting, analytics, etc.

The CICs shared their feedback and highlighted the initiatives that are being taken in collaboration with credit institutions (CIs) for enhancing data quality. [2 Jan 2024]

#Data #Cyber

RBI: PIDF – Extension of Scheme and Enhancements

The RBI has issued a circular regarding the Payments Infrastructure Development Fund (PIDF). As previously announced, the PIDF Scheme is being extended by two years to December 31, 2025. Further, with a view to provide impetus to deployment of acceptance infrastructure, a number of enhancements are being made to the Scheme. [29 Dec 2023]

#Payments

RBI: CoFT – Enabling tokenisation through card issuing banks

The RBI has issued a circular regarding its decision to enable card-on-file tokenisation (CoFT) directly through card issuing banks and institutions. This will provide cardholders with an additional choice to tokenise their cards for multiple merchant sites through a single process. The circular has detailed requirements listed in an annex. [20 Dec 2023]

#CoFT #Tokensiation

Philippines

BSP extends moratorium on the entry of EMI-NBFI

The BSP has announced that it has extended the moratorium on the entry of new electronic money issuer-non-bank financial institutions (EMI-NBFI). Applications for exemption from the moratorium may be granted under the conditions set out in the BSP's November 2021 Memorandum, involving i) new business models; ii) unserved, targeted niches, and/or iii) new technologies. These exceptions are intended to modify the current landscape in the e-money industry with entry of new players that have new business models and new technologies and shift in focus to unserved and underserved markets. The moratorium is extended until 15 December 2024. [29 Dec 2023]

#EMI-NBFI #eMoney

BSP: Strategy for sustained economic growth

Bangko Sentral ng Pilipinas (BSP) announced at the Philippine Economic Briefing in Iloilo City on 11 December that its strategy to support sustained economic growth is focused on three key challenges: managing monetary policy in a supply-shock economy; digitalizing the banking system; and maintaining a safe and efficient payments system that serves the unbanked. [23 Dec 2023]

#DigitalBanking

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