Understanding China’s Data Regulatory Regime: What Are Important Data? And Can They Be Transferred Outside Of China?
The concept of “important data” is a cornerstone of China’s data regulatory regime. The Cyber Security Law (2017) (the CSL) prohibits operators of critical information infrastructures (CIIs) from transferring their “important data” and personal information outside of China. The Data Security Law (2021) (the DSL) and some recent draft regulations indicate that the prohibition on exports of “important data” is likely to apply to all companies, whether CII operators or not.
Then, what are “important data”? (more…)
SEC Announces 2022 Examination Priorities: Private Funds, ESG, Retail, Cyber, Digital Assets Top the List
On March 30, 2022, the U.S. Securities and Exchange Commission (SEC) Division of Enforcement (EXAMS or Division) issued its annual examination priorities.1 Consistent with its recent rulemaking activity, in its accompanying release, the SEC highlighted private funds; Environmental, Social and Governance (ESG) investing; retail; cyber; and digital assets as key examination priorities. This article provides a concise summary of upcoming examination priorities and perennial issues registrants can anticipate in the following year’s examinations.
White House Urgent Warning: Act Now to Protect Against Potential Russian Cyberattacks
On March 21, 2022, the White House issued a dramatic warning based on “evolving intelligence” about the potential for Russia to threaten America with cyber attacks in response to U.S.-imposed economic sanctions. In a separate statement, President Biden said that “the Russian Government is exploring options for potential cyberattacks.” He urged the private sector, especially those that operate critical infrastructure, to “harden your cyber defenses immediately by implementing the best practices we have developed together over the last year.” According to Anne Neuberger, the Deputy National Security Advisor for Cyber and Emerging Technology, Russia has been conducting “preparatory activities”, which she said could include scanning of websites and hunting for software vulnerabilities.
In addition to CISA’s Shields-Up campaign, which we covered in a previous blog post, the White House’s March 21 Fact Sheet stresses the urgency of key cyber hygiene steps including recommendations to: (more…)
Congress Passes Cyber Incident Reporting for Critical Infrastructure Act of 2022
The U.S. Congress has passed a significant new cybersecurity law that will require critical infrastructure entities to report material cybersecurity incidents and ransomware payments to the Cybersecurity and Infrastructure Security Agency (CISA) within 72 and 24 hours, respectively. The reporting requirements will cover multiple sectors of the economy, including chemical industry entities, commercial facilities, communications sector entities, critical manufacturing, dams, financial services entities, food and agriculture sector entities, healthcare entities, information technology, energy, and transportation. CISA must promulgate a proposed implementing regulation within 24 months from final enactment date of March 15, 2022, and a final regulation no later than 18 months thereafter. The effective date of the act’s reporting requirements will be set by the final rule. (more…)
Executive Order on Ensuring Responsible Innovation in Digital Assets
On March 9, 2022, President Joe Biden signed an executive order (EO) to engage several federal agencies in a comprehensive review of the federal government’s approach to cryptocurrencies and digital assets. The broad scope of the EO outlines a unified, “whole-of government” approach to developing policy for digital assets across five key priorities: (1) potential introduction of a United States Central Bank Digital Currency (CBDC); (2) consumer, investor, and business protection; (3) financial stability and systemic risk; (4) illicit finance and national security; and (5) U.S. leadership in the global financial system and economic competitiveness. The EO also focuses on the impact that blockchain technology and digital assets can have on financial inclusion and human rights (including the unbanked and underbanked) as well as on climate change and environmental pollution (including energy usage from mining and grid management). (more…)
5 Global Data Protection Trends To Watch In 2022
*This article was first published by Law360 on January 3, 2022.
A recent discussion with Elizabeth Denham and Claudia Berg of the U.K. Information Commissioner’s Office provided ample food for thought on the direction in which data protection regulation both in the U.K. and internationally is headed, including key trends to watch for in data protection.
View article.
A Software Primer For Attorneys After Cyber Executive Order
When President Joe Biden issued his major cybersecurity executive order on May 12, a White House press briefing said the order would invoke:
“the power of federal procurement to say, “If you’re doing business with us, we need you to practice really good — really good cybersecurity. And, most importantly, we really need you to focus on secure software development.” (more…)
How to Mitigate Corporate Risk and Respond to Crises
Recent events have given the term “corporate crisis” a whole new meaning. From cyberattacks and pandemic disruptions to political divisions and tweets that go viral, companies are being challenged in ways they never have before. How should they respond in a fast-moving crisis? (more…)