A new report from the International Bar Association’s Banking Law Committee (IBA BLC) provides an overview of the regulatory framework for financial technology (fintech) in 39 countries.

The report, titled ‘Fintech: how is the world shaping the financial innovation industry?’, addresses how different regulators around the world are dealing with the application of technology and innovation to banking and financial services, as well as society’s concerns.

The IBA says that fintech helps to achieve financial inclusion by provides opportunities for reducing the gap between traditional financial users, and people who may not have access to banking and payment services.

Resource

Lukasz Szegda (IBA BLC Academic Liaison Officer) pointed out that the fintech industry was multi-jurisdictional by its very nature.

He said that the committee’s regulatory guide was designed to be a resource for industry players seeking international expansion, as well as for their corporate counsel, and other international practitioners.

“It provides a comprehensive legal background in a given jurisdiction of interest across a broad spectrum of fintech landscape,” he stated, adding that it was based on the contributions of leading fintech lawyers in their respective countries.

Challenges for regulators

The report contains outlines of the laws and regulations governing five different aspects of fintech: financial innovation; crypto assets; payment-service providers and digital wallets; open banking; and special programmes supporting the fintech eco-system.

The guide covers nine European countries – including France, Germany and the UK – as well as other major economies such as the US, China and Japan.

The guide does not cover Ireland, but a discussion hosted by the Department of Finance late last year heard that the rapid increase in fintech activity would pose challenges for regulators.