On the 24th October, the US Securities and Exchange Commission (SEC) announced that it and other US monetary regulators had joined the Global Financial Innovation Network (GFIN). The Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and the SEC signed up to the network to foster innovation and collaboration in finance.
Launched in January, the GFIN aims to be a global sandbox for testing fintech solutions with cross-border applications. It came about after a proposal from the UK Financial Conduct Authority (FCA) last year, which suggested there was a lack of infrastructure for firms to trial potential projects across different regulatory areas.
Upon launch, the GFIN had 29 international regulators, including the FCA, the monetary authorities of Singapore (MAS) and Hong Kong (HKMA), and the US Consumer Financial Protection Bureau (CFPB). By June, as the group’s annual report states, that membership had grown to 35.
Now, the network has 46 international monetary organizations, including four more US regulators. All have a role in overseeing digital currencies; the SEC had numerous disputes over virtual tokens and has its own blockchain unit. The CFTC, for instance, also has guidelines in regulating cryptocurrencies. CFTC Commissioner Brian Quintenz spoke with the SEC’s Hester Peirce on blockchain innovation earlier this year.
The GFIN is currently working on cross-border tests involving the FCA, MAS, HKMA, Australian Securities & Investments Commission, Bank of Lithuania, and Dubai Financial Services Authority, among others. The regulators are working with eight firms, many of which use blockchain.
Alphapoint is working with Lithuanian and Bermudian authorities on its digital assets test. So is Coinvestion, also with the MAS and others, for a blockchain real estate shares project. DACX utilizes the technology for cross-border transactions while Tradle uses it for know your customer (KYC) policies.
Coordination Group |
|
| Organisation | Jurisdiction |
| Australian Securities & Investments Commission (ASIC) | Australia |
| Central Bank of Bahrain (CBB) | Bahrain |
| Autorité des marchés financiers (AMF) | Québec, Canada |
| Guernsey Financial Services Commission (GFSC) | Guernsey |
| Hong Kong Monetary Authority (HKMA) | Hong Kong |
| Hong Kong Securities and Futures Commission (HKSFC) | Hong Kong |
| Astana Financial Services Authority (AFSA) | Kazakhstan |
| Monetary Authority of Singapore (MAS) | Singapore |
| Dubai Financial Services Authority (DFSA) | United Arab Emirates |
| Financial Conduct Authority (FCA) | United Kingdom |
| Consumer Financial Protection Bureau (CFPB) | United States |
Members |
|
| Organisation | Jurisdiction |
| Bermuda Monetary Authority (BMA) | Bermuda |
| Securities and Exchange Commission of Brazil (CVM) | Brazil |
| Alberta Securities Commission (ASC) | Alberta, Canada |
| British Columbia Securities Commission (BCSC) | British Columbia, Canada |
| Ontario Securities Commission (OSC) | Ontario, Canada |
| Financial Services Regulatory Authority of Ontario (FSRA Ontario) | Ontario, Canada |
| Centrale Bank van Curaçao and Sint Maarten | Curaçao and Sint Maarten |
| Central Bank of Eswatini | Eswatini (Swaziland) |
| Gibraltar Financial Services Commission | Gibraltar |
| Hong Kong Insurance Authority (IA) | Hong Kong |
| Magyar Nemzeti Bank (Central Bank of Hungary) | Hungary |
| Isle of Man Financial Services Authority (IOMFSA) | Isle of Man |
| Israel Securities Authority (ISA) | Israel |
| Capital Market, Insurance, and Savings Authority (CMISA) | Israel |
| Jersey Financial Services Commission (JFSC) | Jersey |
| Capital Markets Authority (CMA, Kenya) | Kenya |
| Bank of Lithuania (BL) | Lithuania |
| Commission de Surveillance du Secteur Financier (CSSF) | Luxembourg |
| Financial Services Commission Mauritius (FSC) | Mauritius |
| Comision Nacional Bancaria y de Valores (National Banking and Securities Commission) (CNBV) | Mexico |
| Seychelles Financial Services Authority | Seychelles |
| South African Reserve Bank (SARB) | South Africa |
| Financial Supervisory Commission Taiwan | Taiwan |
| Abu Dhabi Global Market (ADGM) | United Arab Emirates |
| Central Bank of the UAE | United Arab Emirates |
| Securities and Commodities Authority, UAE (ESCA) | United Arab Emirates |
| Commodity Futures Trading Commission (CFTC) | United States |
| Federal Deposit Insurance Corporation (FDIC) | United States |
| Office of the Comptroller of the Currency (OCC) | United States |
| Securities and Exchange Commission (SEC) | United States |
| New York State Department of Financial Services (NY DFS) | State of New York, United States |
| Office of the Arizona Attorney General | State of Arizona, United States |
Observers |
|
| Organisation | Jurisdiction |
| Financial Sector Deepening Africa (FSD Africa) | Africa |
| Qianhai Financial Authority | China |
| European Bank for Reconstruction and Development (EBRD) | Europe |
| Consultative Group to Assist the Poor (CGAP) | Global |
| International Monetary Fund (IMF) | Global |
| World Bank Group | Global |
| Qatar Development Bank | Qatar |
