Keeping up to date with current online banking laws and updates is incredibly important when entering the online finance industry. There are constantly rules and regulations being added and altered to ensure everyone’s safety while shopping and selling online. Let’s discuss the important online banking laws in this Macropay review with notes from Adam J Clarke, CEO & Founder of Macropay.
Laws and Updates
Different countries and regions have different rules and regulations when it comes to online banking. Therefore, keeping up to date with laws in your region and the regions in which you wish to sell is incredibly important. Remaining compliant and legal while managing your online business is essential in keeping your business running.
Here are some recent significant updates within the open banking industry.
Cybersecurity
In 2021, in the United States, government policymakers reviewed and focused on improving cybersecurity, strengthening digital identities, and protecting consumers. Emphasis is cast on online payments, digital currencies, and online authentication during financial transactions.
There are updates to several key global regulations, policies, and laws that will have an impact on the banking industry at large, such as with financial institutions, fintech companies, and payment systems. In addition, the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) published a final rule for banking organizations.
Adam J Clarke furthers that “being legally compliant is important. It is in the best interest of any management to assure their client base that their data is protected. Trust is created when clients know that they are dealing with a law-abiding business.”
Cryptocurrency
In the European Union, Markets in Crypto-Assets Regulation (MiCA) aims to establish a comprehensive crypto-assets regulatory framework. This will enhance legal certainty surrounding cryptocurrency and ensure harmonization across the EU. Main priorities include transparency, consumer protection, prevention of market abuse, authorization, and supervision. There is also a clear definition of crypto-assets that are now classified into three categories: e-money tokens, asset-referenced tokens, and a third group covering all other types like utility tokens. MiCA’s legislative process is to be completed in early 2022.
Artificial Intelligence
The European Union has also started to implement a strategy for data concerning the use of AI. The Artificial Intelligence Act, pays particular attention to “high risk” systems and contexts. The regulation would apply to all providers and users located within the EU, as well as extra-territorial providers whose services are utilized within the EU.
Digital Identity
Denmark’s MitID, the digital identity infrastructure, will replace NemID. MitID is to be more flexible and secure and can be used for approving logins and payments. However, due to delays, the solution will most likely be ready in summer 2022.
Furthermore, in Canada, the Pan-Canadian Trust Framework (PCTF) from the Digital Identity and Authentication Council of Canada (DIACC) will launch its Voila Verified Trustmark program in 2022.
Data Protection
In Japan, amendments to the Enforcement Rules for the Act on the Protection of Personal Information (APPI) were published in 2021 and took effect on April 1, 2022. The amendments strengthen the rights of data subjects and impose new requirements in regard to processing personal data and open banking.
The amended APPI requires foreign persons to report on their processing activities, and they will face fines in the case of non-compliance.
In Review: Macropay Experts Can Help
Macropay are experts in the online payments landscape. They can help make accepting client payments and accessing open banking simple and legally compliant. “We are quite knowledgeable when it comes to financial technology. Macropay started out operating in a living room. Now, we are one of the most successful FinTechs in Europe,” Adam J Clarke, CEO & Founder of Macropay notes.
With expert advice and an eye on changing regulations and trends, Macropay can ensure your online business is compliant, safe, and straightforward for your customers. Contact Macropay through support@macropay.net for more information.
