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Global Fintech Landscape Undergoes Regulatory Overhaul: Transformative Changes Across Payments, Startups, and Digital Securities
February 01, 2024
A wave of regulatory transformations is sweeping through the global fintech realm, reshaping key facets of the industry. Covering payments, startups, markets, wealth management, crime prevention, security measures, cryptocurrency regulations, and sustainability initiatives, these updates are set to mold the trajectory of the financial and fintech landscape.
In Australia, a new regulatory framework mandates that payments service providers secure an Australian Financial Services Licence (AFSL) within six months. This move aims to bolster oversight and accountability within the payments ecosystem. Notably, traditional concepts are evolving to embrace a broader definition, encompassing diverse payment products and services.
Europe, too, witnesses shifts as regulatory sandboxes and innovation hubs face scrutiny from the European Supervisory Authorities (ESAs). The ESAs, including EBA, EIOPA, and ESMA, are reviewing these hubs to adapt to the dynamic fintech industry, as highlighted in a recent report.
Cross-border market access between the UK and Switzerland is poised for improvement with the Berne Financial Services Agreement. This agreement aims to foster mutual recognition of domestic laws and regulations, reducing barriers and promoting open access between these financial powerhouses.
Singapore encourages environmentally friendly practices, with the Monetary Authority of Singapore (MAS) advocating ‘Fit-for-Gifting’ currency notes during Lunar New Year. Meanwhile, the Hong Kong Monetary Authority (HKMA) initiates the Interbank Account Data Sharing (IADS) pilot for seamless data sharing among banks.
A groundbreaking move in the UK introduces the regulatory framework for the Financial Market Infrastructure (FMI) sandbox, specifically the Digital Securities Sandbox (DSS). Effective from January 8, 2024, these regulations establish the legal foundation for collaborative operations between the Bank of England and the FCA. This initiative is poised to drive innovation in digital securities within a controlled and supervised environment.
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