Topic: Future of fintech

Legal developments concerning blockchain and digital assets are not limited to the English-speaking world or to common-law jurisdictions. Earlier this year brought some thought-provoking developments on digital assets and related technologies from Spanish-speaking civil law jurisdictions. These include a ruling from a Barcelona court on the intersection of intellectual property rights with NFT and metaverse applications, and a new law in Mexico recognizing the use of online, smart-contract-based alternative dispute resolution systems.

2023 was a challenging year for global FinTech M&A and investment. Intense macroeconomic and geopolitical headwinds led to investor caution. The result was that the sector experienced the lowest levels of M&A and investment activity since 2017, both in terms of deal value and volume.

Our lawyers from across Europe, the Middle East, Asia and the US share their insights on what to expect across the regulatory landscape in relation to FinTech and crypto-assets in 2024.

Türkiye has positioned itself as a dynamic hub for FinTech innovation, undergoing substantial transformation in its financial landscape in recent years. Driven by technological advancements, evolving consumer preferences and proactive regulatory initiatives, the FinTech sector in Türkiye, especially in payment services, e-money and digital banking, has experienced noteworthy growth. Despite limited regulation, the crypto assets sector has also emerged as a very strong force, adding another dimension to the country's evolving FinTech narrative.

What relevance does a tort doctrine from the late Middle Ages hold for modern electronic forms of property like digital assets? Quite a bit, it turns out. Recent court rulings show the venerable common-law tort of conversion providing an effective vehicle for relief in a number of cryptocurrency and NFT disputes.

On 11 December 2023, the European Banking Authority (EBA), European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA) – together, the European Supervisory Authorities (ESAs) – published a report on ‘innovation facilitators’, a term that encompasses innovation hubs and regulatory sandboxes.

Deputy Secretary of the Treasury Wally Adeyemo, speaking last week at a virtual currency summit in Washington, DC, made an urgent call to action to the digital asset industry to partner with the US Government to cut off illicit actors’ access to virtual currency exchanges. Pointing to regulatory partnerships forged over decades with traditional financial institutions, Adeyemo called on digital asset players in blunt terms to work with Treasury “to prevent terrorists, transnational criminals and rogue states” from using virtual currencies to move and shield their assets while recognizing the great potential the still relevant infant technology holds.

On October 24, 2023, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (FDIC) (hereinafter the agencies) released a final rule to implement changes to the Community Reinvestment Act (CRA).

During UK FinTech Week earlier this year, the Economic Secretary to the Treasury announced the launch of the UK FinTech Census.

On 5 October 2023, the FCA published a speech by Jessica Rusu (FCA Chief Data, Information and Intelligence Officer) entitled Flipping the coin in financial services.