Fintech and Payments Regulation: Analytical Framework
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Summary:
Financial technology (Fintech) has prompted authorities to consider their potential financial stability benefits, risks, and effective regulation. Recent developments suggest that regulatory approaches and their legal foundations need to augment entity-based regulation with increasing focus on activities and risks as market structure changes. This paper draws on recent international experiences in modernizing legal and regulatory frameworks for payment services. An analytical framework based on a four-step process is proposed—(i) identifying payment activities; (ii) licensing entities and designating systems; (iii) analyzing and managing risks, and (iv) promoting legal certainty. As payment activities evolve and potential systemic risks heighten, adherence to international standards and additional regulatory requirements should be warranted.
Series:
Working Paper No. 2020/075
Subject:
Anti-money laundering and combating the financing of terrorism (AML/CFT) Crime Digital currencies Financial markets Legal support in revenue administration Mobile banking Payment systems Revenue administration Technology Virtual currencies
English
Publication Date:
May 29, 2020
ISBN/ISSN:
9781513531496/1018-5941
Stock No:
WPIEA2020075
Pages:
38
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