The International Monetary Fund (IMF), a financial agency of the United Nations, with 190 member countries, has published a discussion paper on the monitoring of new developments in fintech. The IMF said it believes monitoring will provide data which regulators around the world can use to inform future policy.
The paper outlines the different regulatory approaches to fintech which the IMF believes regulatory authorities can follow. These range from a “wait and see” approach that allows some development of fintech-driven products and services outside of the regulatory perimeter to outright bans or restrictions on certain activities or technologies.
The IMF paper outlines four key areas of focus for improving the monitories of fintechs and the effectiveness of these different approaches:
Expand and utilise existing regulatory structures.
Use of innovation hubs.
Sandboxes for technological testing and innovation.
TechSprints to tackle key issues.
Full details are available here.
[Image Source: International Monetary Fund]
