IMF Working Papers

Fintech and Payments Regulation: Analytical Framework

By Tanai Khiaonarong, Terry Goh

May 29, 2020

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Tanai Khiaonarong, and Terry Goh. Fintech and Payments Regulation: Analytical Framework, (USA: International Monetary Fund, 2020) accessed November 8, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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.

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

Keywords: Account directive, Africa, Anti-money laundering and combating the financing of terrorism (AML/CFT), Central bank, Digital currencies, Fintech, Global, Legal support in revenue administration, Mobile banking, Network organization, Nonbank payment institutions, Obligation law, Oversight department, Oversight framework, Payment activity, Payment infrastructure, Payment scheme, Payment services, Payment system, Payment system oversight, Payment systems, Payment token, Payment transaction, Regulation, Virtual currencies, WP

Publication Details

  • Pages:

    38

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2020/075

  • Stock No:

    WPIEA2020075

  • ISBN:

    9781513531496

  • ISSN:

    1018-5941

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