Why is fintech of interest to authorities?

The fintech sector can improve the efficiency in the financial system and lead to financial services being cheaper and better. But it also gives rise to different kinds of challenges for authorities. For example, there is a fear of fintech firms circumventing prevailing rules by using new technology. Cryptoassets can present particular challenges and risks, while at the same time data availability is low, which limits the ability to monitor risk progression. Cryptoassets are largely unregulated in many countries, although there are some countries that have put a total ban on cryptoassets and related operations. Work is in progress in many jurisdictions, including the EU, on devising legislation that encompasses cryptoassets. Efforts are also under way within a number of standard-setting bodies on preparing standards that, on the whole, aim to reduce the risks caused by cryptoassets.

Published: 19 May 2022