Fintech law in the European Union, the United States and China: Regulation of financial technology in comparative context

This comparative study identifies and explains commonalities and differences in regulation of fintech in the EU, the US and China. Since fintech is deeply shaped by the local financial system, which fintech sectors have received more regulatory attention, as well as the pace and scope by which regulatory reforms fit for fintech in each jurisdiction have been introduced, are jurisdiction-specific. Although each jurisdiction has shown interest in developing its own central bank digital currency, motivations are partly rooted in different causes. Regulation of mobile payment and data protection also differ, with recent convergence to the EU approach. Similarities between the compared jurisdictions can be found in the policy aims for fintech regulation as well as in the struggle to balance these regulatory aims. Owing to the rapid pace and constant evolution of fintech, none of the jurisdictions has a single legislative framework for fintech nor a single fintech regulator, resulting in fragmented regulatory frameworks for fintech firms and services. The local level has been significant in regulating fintech while allowing space for regulatory flexibility and experimentation. Lastly, cryptocurrencies have raised similar concerns in all three jurisdictions, even if the regulatory approach has differed.