Exploring Fintech Regulations Across Five Nations

Abstract

The chapter explores the rise of fintech regulation in India, China, USA, UK and Singapore that are strong in the fintech industry. The nations have proved themselves to be strong in terms of number of fintech unicorns, driving global fintech innovation, strong regulatory framework, presence of leading fintech companies and fintech hubs as well as attracting large fintech financing. The chapter intend to see the regulatory framework of fintech in five countries viz. USA, UK, China, India & Singapore. The comparison is based on the following criterion on the fintech regulatory framework: Specific Fintech Functions and Specific Fintech Domains. The chapter explored the literature on fintech regulations and identified literature on the need for regulatory adaptation, regulatory sandboxes as a testing ground for innovation, differences in regulatory approaches across the globe, balancing innovation & public interest objectives, focus on consumer protection, etc. The framework that has been used is the one used by IMF to examine countries identified with foundational fintech regulation and countries with fintech specified regulations. The examination of the fintech regulations in the five countries revealed that regulations are not necessarily from the central banks or the controller of the capital market alone, but from different controlling authorities and those have control over the technology users and usage, concern for consumer/investor protection, concerned with preventing money laundering or use of funds for anti-social activities. The chapter concludes that the fintech regulatory framework is expanding and enabling for the fintech industry and benefitting the stakeholders of the industry.