Tomorrow, when you buy your morning coffee will you rifle through your wallet for some coins or a card, or wave your phone? Or maybe send a text, or deposit a digital token? The way we pay for things is changing, with e-money challenging traditional cash and bank deposits. How should we think of new digital […]
The European Banking Authority (EBA) have published a report analysing how the regulatory framework is applicable to fintech firms, illustrating the changing regulatory status of fintech firms and the different approaches of authorities across Europe. The report has noted two particular developments in the regulatory status of fintech firms. Firstly, many firms are shifting from […]
The European Securities and Markets Authority (ESMA) have published a report looking into the inconsistencies of fintech licencing across the EU. ESMA surveyed national competent authorities on the licensing regime of fintech firms in their jurisdictions, looking to assess how existing regulation of fintech firms diverge. While national authorities across the EU do not treat […]
As we’ve reported here before, the financial system is currently undergoing a technological revolution that regulators must respond to. Cryptocurrencies, new payment systems (tap to pay is becoming the norm) and digital banking all need new forms of oversight. At the same time, banking supervision is a highly complex system, with regulatory submissions reaching record […]
The International Monetary Fund (IMF) have added their voice to those highlighting the unique challenge big tech and fintech pose to financial stability at the opening of the G20 Seminar on “Our Future in the Digital Age” in Japan last week. Christine Lagarde, head of the IMF, voiced concerns that, if not managed with balance, […]
How best to balance the opportunities and threats presented by fast-growing Fintech? The IMF’s First Deputy Managing Director, David Lipton, called for a multilateral, international approach at the 2nd IMF Fintech Roundtable this week. Fintech has seen world-wide changes, with reduced costs and transaction times and boosts to growth and living standards – however, it […]
The Securities and Exchange Commission (SEC) announced this week that in May they will be holding a Fintech forum to discuss distributed ledger technology and digital assets.
The SEC has taken a mixed approach to digital asset regulation, with SEC Chairman Jay Clayton suggesting that digital assets both do and don’t qualify as securities, depending on their design. To help clarify the regulatory ambiguity around digital assets the SEC established its Strategic Hub for Innovation and Financial Technology in 2018 (FinHub). Finhub now seeks to improve communication with and understanding of the digital asset industry with this forum.
Yves Mersch, Member of the Executive Board of the European Central Bank (ECB), recently made a speech on the upheaval fintech is causing to the lending and payments system. Financial technology uptake has been accelerating fast, with new technologies giving entrants better and cheaper ways to compete for core banking business. Regulation like the Payments […]
A speech given last week by Denis Beau, First Deputy Governor of the Bank of France, examines the risks and challenges to regulation posed by the explosion of Big Tech and Fintech firms. In the past decade there has been a structural shift stemming from the digitisation of finance, utilising cutting-edge technologies like big data, […]
What lies ahead for Europe’s supervisors? In an interesting speech last week at the Future Supervisory Landscape conference Ms Sabine Lautenschläger of the European Central Bank attempted to tackle this question, outlining some the challenges that European supervisors will face in 2019 – including the increasing involvement of tech in finance. Of course, predictions are […]