Having knowledge about the latest innovations in the financial services industry is a must for any country that has intentions of properly regulating all the innovative technologies that are quickly taking the scene. If that knowledge can be shared and discussed by several regulators and watchdogs around the world, the whole field will be improved.
Thankfully, a positive development took place in the last few hours, as the United Kingdom’s Financial Conduct Authority, or FCA, received four new organizations in its international alliance of regulators with the objective of sharing policies, experiences, and bolstering the future of Fintech in general.
The Global Financial Innovation Network
The body promoted by the FCA is called the Global Financial Innovation Network, and it was announced via a joint press release that four prominent United States-based regulators would be joining it, cementing its place as a truly international institution.
The four American financial watchdogs joining the alliance are the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC.)
The four financial regulators are arguably the most influential in the United States’ current landscape. All of them are widely recognized at a global scale and make for welcome additions to the strategic partnership promoted by the UK’s FCA.
Proactive Steps to Enhance Regulatory Clarity
“U.S. financial regulators have taken proactive steps in recent years to enhance regulatory clarity and understanding for all stakeholders and promote early identification of emerging regulatory opportunities, challenges, and risks,” per the joint statement.
The cooperative network was initially formed in August 2018. The participation of the four new American members will bring federal watchdogs into the equation, which will benefit an organization that wants to develop what it calls a “global sandbox” for innovations in the ever-changing industry.
The joint press release that announced the news had the regulators saying that “by promoting knowledge-sharing on innovation in financial services, U.S. members of GFIN will seek to advance financial and market integrity, consumer and investor protection, financial inclusion, competition, and financial stability.”
Representing the Interests of the Nation
The document also said that taking “participation in international organizations such as this helps U.S. financial regulators represent the interests and needs of the nation and its financial services stakeholders.”
Ever since the GFIN was up and running last year, the organization found other institutions with a keen interest in studying cross-border solutions ranging from distributed ledger technology (DLT) to initial coin offerings (ICOs.) Some of the alliance’s members had begun using cross-border payment channels and tools via the DLT.
There are other 46 financial authorities that are currently members of the alliance. Some of the members are regulators whilst others are central banks and international organizations from several nations around the world. The group’s primary intentions are to foster cooperation in various points, fields, and topics, including regulatory approaches towards specific assets, and lessons to be learned.
By Andres Chavez