*This article was originally published by DataGuidance in October 2018.
On 6 September 2018, the Monetary Authority of Singapore (‘MAS’) issued a consultation paper on its draft notice on cyber hygiene (‘the Notice’) which will require financial institutions operating in Singapore to implement a set of fundamental controls to raise their overall level of cyber resilience. Han Ming Ho and Yuet Ming Tham, partners at Sidley, discuss and focus on the key features of the draft Notice.
The fifth edition of The Privacy, Data Protection and Cybersecurity Law Review takes a look at the evolving global privacy, data protection and cybersecurity landscape in a time when mega breaches are becoming more common, significant new data protection legislation is coming into effect, and businesses are coming under increased scrutiny from regulators, Boards of Directors and their customers. Several lawyers from Sidley’s global Privacy and Cybersecurity practice have contributed to this publication. (more…)
On November 1, 2018, following a rising tide of speculation, the Hong Kong regulator Securities and Futures Commission (SFC) announced a series of initiatives to regulate digital assets for the first time (and, apparently, without the need for any kind of legislative approval or backing). The initiatives, discussed below, take effect immediately. For purposes of the new regime, the SFC refers to “virtual assets” broadly defined to include initial coin offerings (ICOs), digital tokens (such as digital currencies, utility tokens or security or asset-backed tokens) and any other virtual commodities, cryptoassets and other assets of essentially the same nature (together “digital assets” herein as commonly understood in the industry). (more…)
Former Department of Homeland Security Chief Privacy Officer Hugo Teufel III and Sidley’s Edward McNicholas addressed a packed room on Chinese Cybersecurity Law at the 2018 Privacy + Security Forum hosted at George Washington University. The timely presentation highlighted how, with significant attention in the past few years focused on the GDPR, many have not fully appreciated the significant policy and legal developments coming out of Beijing. In particular, China has been creating a materially different approach to cybersecurity which serves the central purpose of defending the Chinese notion of cyber sovereignty. Much uncertainty remains about the newly-effective laws and regulations, but it is clear that foreign technology and other companies operating in China should rapidly focus on its significant restrictions on outbound data transfer, the expansive definitions of “important data”, as well as reviews of network equipment security. Their presentation is available here.
On August 7, a group of regulators from 11 jurisdictions published a consultation (the Consultation) on the Global Financial Innovation Network (the GFIN), which aims to promote international cooperation on innovation and the use of technology in financial services (FinTech) and in regulatory processes (RegTech).
The group — which includes the U.S. Consumer Financial Protection Bureau, the UK Financial Conduct Authority (the FCA), the Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Singapore (MAS) — is one of the first major collaborative efforts on FinTech and RegTech issues among regulators in developed financial services markets. The Consultation builds on the FCA’s proposal earlier this year to create a “global sandbox” for innovative financial services firms.
This post summarizes the proposed role of the GFIN, the issues on which its founding regulators are consulting and how these may affect financial services firms.
On July 17, 2018, the European Commission released a press release announcing Japan and the European Union have concluded talks on reciprocal adequacy of their respective data protection systems, alongside a corresponding Q&A on reciprocal adequacy. After successful negotiations, both jurisdictions have reached a mutual adequacy arrangement, recognising the adequacy in each jurisdiction’s data protection framework and representing the first time that the EU and a third country have agreed on a reciprocal recognition of the level of “adequate” data protection. (more…)
On March 6, 2018, Singapore announced that it has joined the APEC Cross-Border Privacy Rules (CBPR) system as well as the APEC Privacy Recognition for Processors (PRP) program. Singapore is the sixth member of the CBPR system, which includes Canada, Japan, Korea, Mexico and the United States, and is the second member of the PRP program after the US. (more…)
On November 7, 2016, the Standing Committee of the National People’s Congress of China promulgated the Cyber Security Law of the People’s Republic of China (the “Cyber Security Law”) after three rounds of readings in June 2015, June and October 2016, respectively. The Cyber Security Law will enter into force on June 1, 2017. As early as July 1, 2015, the National Security Law of the People’s Republic of China was promulgated, expressly providing that the state shall “safeguard sovereignty and security of cyberspace in the state,” a theme that is reiterated and emphasized in Article 1 of the Cyber Security Law. The introduction of the concept of “cyber space sovereignty” in the Cyber Security Law echoes the views of President Xi Jinping, who is also the head of the Office of the Central Leading Group for Cyberspace Affairs, and who has stated in February 2014 that “[n]o cyber safety means no national security.” Critically, the Cyber Security Law may have global implications, as the Law applies to both Chinese and international businesses engaging in the construction, operation, maintenance or use of information networks in China.
On Sept. 6, the Hong Kong Monetary Authority (the HKMA) announced two initiatives targeted at raising Hong Kong’s profile as a fintech hub: the setting up of the Fintech Innovation Hub (the Hub) and the Fintech Supervisory Sandbox (the Sandbox).
The Singapore government has renewed its emphasis on cybersecurity due to the increase in incidents affecting the private and public sectors both domestically and around the world. As a result, Singapore set up its Cyber Security Agency (CSA) on April 1, 2015, to oversee strategy, education, outreach and industry development. On April 11, 2016, Dr. Yaacob Ibrahim, Minister for Communications and Information, announced that the government would develop a Cybersecurity Act (Cybersecurity Bill), which is expected to be tabled in Parliament next year.