Fintech and Payments Regulation: Analytical Framework
IMF Working Papers, May 29, 2020
Source details
- Canonical URL
- Fintech and Payments Regulation: Analytical Framework
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Bibliographic details
- Authors: Tanai Khiaonarong, Terry Goh
- Published: May 29, 2020
- Series: IMF Working Papers
Overview and key findings
- Financial technology (Fintech) has prompted authorities to consider their potential financial stability benefits, risks, and effective regulation.
- Recent developments suggest regulatory approaches and their legal foundations need to augment entity-based regulation with increasing focus on activities and risks as market structure changes.
- The paper draws on recent international experiences in modernizing legal and regulatory frameworks for payment services.
- As payment activities evolve and potential systemic risks heighten, adherence to international standards and additional regulatory requirements should be warranted.
Analytical framework (four-step process)
- (i) identifying payment activities
- (ii) licensing entities and designating systems
- (iii) analyzing and managing risks
- (iv) promoting legal certainty
Policy implications and analysis
- Regulatory frameworks should move beyond pure entity-based approaches and incorporate activity- and risk-focused oversight as market structure changes.
- Modernization of legal and regulatory frameworks for payment services should reflect international experiences and standards.
- When payment activities carry heightened potential systemic risks, additional regulatory requirements and alignment with international standards are warranted.
Subjects and keywords (as listed)
- Subjects: 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
Content in this bundle
- Working Paper