Fintech businesses struggling to stay inbounds of government rules may soon receive a dose of much-needed guidance via the Consumer Financial Protection Bureau (CFPB). Through its newly-created Office of Innovation, agency leadership intends to develop a regulatory framework designed to open the spigot in terms of the development of new products and services for those companies involved in cryptocurrencies, blockchain technologies and microlending, and also loans by individuals. Paul Watkins, the architect of Arizona’s fintech regulatory sandbox that launches in August, was named to spearhead the federal effort.
In recent regulatory news, U.K. minister, Eddie Hughes has published a report that advocates for the creation of a “Chief Blockchain Officer,” the U.K. Financial Conduct Authority has announced that a number of distributed ledger (DLT) companies have been accepted into cohort 4 of its regulatory sandbox, and Finland’s Central Bank has published a report calling cryptocurrency a “fallacy.”
The Financial Conduct Authority (FCA), responsible for conduct and relevant prudential regulation of financial services firms and financial markets in the U.K., has announced the details of the firms selected to be part of cohort 4 of its regulatory sandbox, according to an FCA post. Of the 29 firms selected, about 40 percent of them are blockchain focused.