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As new regulations come into force across a number of sectors , we look at the areas most likely to be affected
The past few months have been turbulent for fintechs . With tanking economies , falling investment interest and an extremely long crypto winter , change has become a familiar state of being .
But , as the industry continues to mature , more changes are expected – this time in the form of regulations that will seek to stabilise and secure fintechs by building trust in the space . Here , we take a look at the top four fintech sectors set to experience new regulations .
Cryptocurrency and DeFi regulatory changes Since US President Joe Biden formalised his intentions to regulate cryptocurrency and the decentralised finance space in 2022 , much debate has been aired about exactly how such a task could be done without compromising the privacy and autonomy of the space , which has made it so successful with investors . James Corcoran , Chief Growth Officer of KX , explains the quandary . He says a common worry in the industry is that , once the regulators and additional technology get involved in the crypto sphere , innovation will slow down .
“ Regulation is inevitable – the IMF has said
crypto assets are no longer niche and regulators need to catch up . The European Central Bank has urged eurozone countries to harmonise different rules around crypto regulation before EU-wide laws come into force at the end of 2023 . The US is also pushing for more regulation , with the US Treasury encouraging new laws to address crypto regulation gaps .”