New York, France Sign MoU to Support Fintech Regulation and Development across Borders

With the worst passed with respect to the coronavirus disease, countries are looking to reboot their economies after suffering massive economic meltdowns. Every nation had its share of economic recession as the coronavirus forced the lockdown of businesses. It may be very difficult for businesses to rebound with the tempo with which performances plunged. However, the responsibility lies on every government to facilitate alliances and programs that will help businesses to recover fast and a report released on June 8, New York and France have signed a memorandum of understanding (MoU) that will help fintech companies, banks, and startups to take advantage of emerging technologies such as blockchain technology. 

New York’s Headstart in Tech

The new alliance can be attributed to the current technological advancement New York City has relative to other major cities of its kind. The city has had tremendous involvement in the emergence of tech startups. The city also has a positive orientation towards blockchain technology with the introduction and approval of BitLicense in 2015. BitLicense debuted as the first comprehensive regulatory framework for firms dealing in virtual currency such as Bitcoin. It also includes key consumer protection, Anti-money Laundering, cybersecurity rules to help safeguard customer funds and root out the illicit activity. The introduction of BitLicense has spiked a positive outlook for the blockchain ecosystem in New York City.

As reported by thetokenist, In September 2019, New York announced the creation of a crypto task force that was formed to advise on cryptocurrency regulation. The official body, which was approved by New York governor Andrew Cuomo in August 2018, was the first in the U.S. to be dedicated to digital asset regulation. These and many more instances of New York Tech advancement gives a region the needed headstart to aid technology transfer to other regions.

Implications of New York and France Fintech Alliance

The MoU was signed between the New York State Department of Financial Services (DFS) and Autorité de Contrôle Prudentiel et de Résolution (ACPR). With this MoU, both region’s tech ex-pats will be able to penetrate each other’s markets with ease. The MoU will also favor the modeling of policy and regulatory framework from one region to the other.

Reacting to the MoU, the Governor of the Banque de France and ACPR Chairman Villeroy de Galhau said that the agreement “underscores the ties between the two authorities and their strong commitment to innovation. I am sure this agreement will help connect two major fintech ecosystems and promote innovative financial services in both countries.”

Hopes are renewed and observers hope this alliance will yield positive dividends for both regions in years to come.