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Regulating Fintech: Objectives, Principles, and Practices

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  • Amstad, Marlene

    (Asian Development Bank Institute)

Abstract

We provide an overview and key elements on the ongoing debate of whether and how to regulate fintech. We review three objectives of financial regulation (investor protection, market integrity, safeguarding financial stability) in the context of recent fintech developments, cover three guiding principles many regulators follow (legal certainty, technology neutrality, and proportionality), and end with a suggested synopsis of current fintech regulatory practices: “wait-and-see”, “same risk, same rules” (“duck typing”), or “new functionality, new rules” (“coding”).

Suggested Citation

  • Amstad, Marlene, 2019. "Regulating Fintech: Objectives, Principles, and Practices," ADBI Working Papers 1016, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:1016
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    References listed on IDEAS

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    1. Stijn Claessens & Jon Frost & Grant Turner & Feng Zhu, 2018. "Fintech credit markets around the world: size, drivers and policy issues," BIS Quarterly Review, Bank for International Settlements, September.
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    3. Armour, John & Awrey, Dan & Davies, Paul & Enriques, Luca & Gordon, Jeffrey N. & Mayer, Colin & Payne, Jennifer, 2016. "Principles of Financial Regulation," OUP Catalogue, Oxford University Press, number 9780198786474.
    4. Lin William Cong & Zhiguo He, 2019. "Blockchain Disruption and Smart Contracts," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1754-1797.
    5. Antoine Bouveret, 2018. "Cyber Risk for the Financial Sector: A Framework for Quantitative Assessment," IMF Working Papers 2018/143, International Monetary Fund.
    6. Xavier Freixas & Jean-Charles Rochet, 2008. "Microeconomics of Banking, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262062704, December.
    7. Michel Rauchs & Andrew Glidden & Brian Gordon & Gina Pieters & Martino Recanatini & Francois Rostand & Kathryn Vagneur & Bryan Zhang, 2018. "Distributed Ledger Technology Systems. A Conceptual Framework," Cambridge Centre for Alternative Finance Reports 201810-dlts, Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge.
    8. Susan Athey & Christian Catalini & Catherine Tucker, 2017. "The Digital Privacy Paradox: Small Money, Small Costs, Small Talk," NBER Working Papers 23488, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Metzger, Martina & Were, Maureen & Pédussel Wu, Jennifer, 2022. "Financial inclusion, mobile money and regulatory architecture," IPE Working Papers 202/2022, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    2. Treu, Johannes, 2022. "FinTech, General Purpose Technology und Wohlfahrt," IU Discussion Papers - Business & Management 5 (Juni 2022), IU International University of Applied Sciences.
    3. Carlo Gola & Andrea Caponera, 2019. "Policy issues on crypto-assets," LIUC Papers in Economics 2019-7, Cattaneo University (LIUC).
    4. Marius FOTSO KAMGA & Emmanuel BANKOLE, 2023. "gouvernance financière des cryptomonnaies en Afrique," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 14(1), pages 83-98, June.

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    More about this item

    Keywords

    fintech; financial technology; digital currency;
    All these keywords.

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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