Creative Commons

The digitalization of the economy and especially of the financial sector has led to the emergence of FinTech. By filling the gaps created by the inability of banks to keep up with this digitalization, FinTech services have the effect of supporting markets, promoting investment and protecting consumers and investors. However, there are certain risks arising from the said innovative addition to the market which jeopardize all the above. It is therefore imperative to develop a legislative framework that mitigates these risks and promotes and reinforces the benefits of FinTech. The goals of the present dissertation are to examine the existing framework for FinTech in the European Union, its effectiveness to regulate the respective matters mainly in terms of financial and capital markets growth, investor and consumer protection. It is a fact, that there is no existing unified legal framework addressing FinTech within the EU. In the first chapter a brief analysis of the nature of FinTech is pursued followed by an examination of FinTech regulatory framework in the EU and the various approaches applied thereto. The third chapter deals with the importance of a unified EU supervisory system for FinTech and the fundamental contribution of regulatory sandboxes to its proper regulation and supervision. The Capital Markets Union and the contribution of FinTech to its further development and growth is examined in the fourth chapter whereas the fifth chapter focuses on the Union’s endeavor to create a solid legal framework for FinTech through the publishing of the FinTech Action Plan followed by the Digital Finance Package. Lastly, the present dissertation also provides with a brief comparison between the European regulatory approach and that adopted in the USA and China, two of the most dynamic FinTech markets.