CFTC and South African Reserve Bank join hands to promote FinTech innovation

By Pavithra R

The Commodity Futures Trading Commission (CFTC) and the South African Reserve Bank (SARB) has announced signing a Statement of Intent to cooperate and support innovation through each authority’s respective financial technology (FinTech) initiatives: CFTC’s LabCFTC and SARB’s FinTech Unit.

Collaboration efforts amongst authorities are increasingly becoming a critical component to understanding approaches to FinTech innovation. Such efforts are expected to promote ongoing joint knowledge sharing on complex FinTech matters.

“We welcome the opportunity for enhanced cooperation with our South African colleagues to promote responsible FinTech innovation. This arrangement builds on recent efforts by the CFTC to strengthen international collaboration in this realm. Coordinating with our international partners has many benefits, including helping us keep up with the rapid pace of technological changes in our markets,” said CFTC Chairman Heath P. Tarbert.

The Statement of Intent on Cooperation and the Exchange of Information on FinTech Innovation focuses on information-sharing regarding market trends and developments. It also facilitates referrals of FinTech businesses and the sharing of information and insights derived from each authority’s experiences and relevant events, proofs of concept, trials, or innovation competitions. The arrangement will support both authorities’ efforts to facilitate market-enhancing FinTech innovations and ensure international cooperation on emerging regulatory best practices.

The South African Reserve Bank (SARB) is the central bank of the Republic of South Africa. SARB’s FinTech Unit was founded in 2017, to further the SARB’s efforts to embrace FinTech innovation whilst ensuring appropriate alignment to policies, regulations, and supervisory regimes.