Vancouver – GFIN (The Global Financial Innovation Network), of which the British Columbia Securities Commission (BCSC) is a member, is moving ahead with its next step in creating an international testing pilot for firms wishing to market innovative products, services or business models across multiple jurisdictions.
In total, 44 unique applications were submitted across the 17 participating regulators.
After initial screening, GFIN members will continue working with eight firms, including the Vancouver-based Coinvestion. The proposed investment and exchange platform for real estate shares is the only Canadian-based firm moving ahead.
The next phase is for the firms to develop plans to implement their proposed test with the relevant regulators for their cross-border trial. Firms that develop a testing plan satisfactory to each jurisdiction’s criteria will take part in the pilot testing phase.
An announcement about the firms formally selected for the cross-border testing pilot will be made in the second quarter of this year.
The following tests are under consideration for the cross-border trials:
|Firm||Proposed test||Current regulators involved*|
|Alphapoint||Software company offering products built on public and private blockchains that support the requirements for issuance, custody and trading of digital assets with liquidity across multiple exchanges.||Bermuda Monetary Authority (BMA), Bank of Lithuania (LB)|
|Ascent RegTech||AI-driven RegTech solution that automatically maps a customer’s specific regulatory obligations and ongoing rule changes, while also enabling end-to-end compliance management. The product helps firms see similarities and differences in regulatory obligations across regulators and countries.||Australian Securities & Investments Commission (ASIC), Autorité des marchés financiers (AMF Québec), Dubai Financial Services Authority (DFSA), Financial Conduct Authority (FCA), Hong Kong Monetary Authority (HKMA), Ontario Securities Commission (OSC)|
|ATLANT||Digital securities platform offering primary issuance of digital shares & debentures, secondary trading and optimized post-trade, with automatic clearing, settlement and custody.||Central Bank of Bahrain (CBB), Monetary Authority of Singapore (MAS), Jersey Financial Services Commission (JFSC), LB|
|Coinvestion||Platform that uses blockchain to allow users to invest in shares backed by real estate investments.||British Columbia Securities Commission (BCSC), BMA, JFSC, LB, MAS|
|DACX||Platform that uses DLT and machine learning to facilitate cross-border transactions of multi-currency payments, assets and commodities via tokenisation, smart contracts and escrows.’||Astana Financial Services Authority (AFSA), plus others to be confirmed|
|Onfido||A technology provider that has developed a proposition to allow consumers to securely control their verified identity Digital ID and share/transfer that verified identity across financial services organisations for the purposes of KYC checks.||HKMA, FCA, LB, OSC|
|Starling Trust||Applied behavioural sciences technology company that has developed a Predictive Behavioural Analytics platform using machine learning and electronic communications data to allow users to measure, manage and mitigate culture and conduct risks. They will be partnering with a select group of global banks, with an initial focus on the three lines of defense risk framework.||ASIC, DFSA, FCA, HKMA|
|Tradle||A blockchain-based KYC and onboarding platform that uses AI, IoT and cloud to help financial institutions meet regulatory obligations for SMEs, Corporates, Capital markets, Wealth Management, Retail and Unbanked customers and helps regulators provide guidance and supervision for their markets. They will work with GFIN on self-executing cross-border KYC policies.||Abu Dhabi Global Market (ADGM) and FCA|
*regulators are only responsible for those applications relevant to them
This announcement does not mean the eight firms have been given regulatory approval, nor does it guarantee the companies will be allowed to participate in the pilot. Their involvement is conditional on further work being undertaken and tests being agreed by the regulators involved.
About the Global Financial Innovation Network
The GFIN is a network of 29 organizations committed to supporting financial innovation in the interests of consumers.
The GFIN seeks to provide a more efficient way for innovative firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. It also aims to create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches.
About the British Columbia Securities Commission ( www.bcsc.bc.ca )
The British Columbia Securities Commission is the independent provincial government agency responsible for regulating capital markets in British Columbia through the administration of the Securities Act . Our mission is to protect and promote the public interest by fostering:
- A securities market that is fair and warrants public confidence
- A dynamic and competitive securities industry that provides investment opportunities and access to capital