Global Payments Newsletter - September 2016

In this monthly publication we provide an overview of the most recent payments regulatory and market developments from major jurisdictions around the world as well as sharing interesting reports and surveys on issues affecting the market.

Key developments of interest over the last month include:


Real time gross settlement system

  • On 1 August 2016, the Bank of England (BoE) published its first self-assessment on its real-time gross settlement (RTGS) system against the Principles for Financial Market Infrastructures (PFMI).
  • Although the RTGS is not a payment system, the self-assessment was primarily undertaken against the principles that apply to payment systems.
  • Of the principles that were judged to be applicable, the BoE found that the RTGS service fully observed all of them, with principle 2 (governance) and principle 3 (framework for the comprehensive management of risks), only being broadly observed.
  • The self-assessment highlights any findings that are relevant to the BoE's on-going strategic review of the RTGS.
  • The BoE has also published a service description of the RTGS service.
  • The self-assessment was carried out by the BoE in its role as operator of the RTGS service, and not in its supervisory capacity. The BoE plans to update the self-assessment on a broadly annual basis.

Bitcoin ATM

  • Deloitte's bitcoin transaction machine (BTM) is based in the Rubix blockchain division of its Toronto office, and is now ready to exchange digital currency for Candian dollars.
  • The BTM was manufactured by Bitaccess, and can accept up to 1,000 bills in multiple currencies.
  • According to Bitaccess' co-founder, Moe Adham, this advances Bitaccess' mission to commercialise blockchain technologies.

Proposed bitcoin regulations in Singapore

  • Under the proposed framework, applicable companies would have to obtain a licence from the Monetary Authority of Singapore (the MAS). The framework would also divide payment activities into several categories.
  • The MAS said "it is likely that under the [Proposed Payments Framework], virtual currency intermediaries which buy, sell, or facilitate the exchange of virtual currencies, such as bitcoin, will also be considered to undertake [money transmissions and conversion services]."
  • The MAS also highlighted the need for a regulatory framework that reflected the changing nature of financial institutions amidst a period of technological change.
  • A comment period for the proposal runs through to the 31 October 2016.

The full proposal can be found here.


The EBA consults on RTS specifying requirements on strong customer authentication under PSD2

As mentioned in August's newsletter, on 12 August 2016, the EBA published a consultation paper (EBA-CP-2016011) on the draft regulatory technical standards (RTS) relating to strong customer authentication and common and secure communication under the Directive on payment services in the internal market ((EU) 2015/2366) (PSD2).

See our briefing on the consultation paper here.

See the EBA consultation paper here.

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