Hardback
FinTech
Law and Regulation
2nd edition
9781800375949 Edward Elgar Publishing
This fully updated and revised second edition provides a practical examination of the opportunities and challenges presented by the rapid development of FinTech in recent years, particularly for regulators, who must decide how to apply current law to ever-changing concepts driven by continually advancing technologies. It addresses new legislative guidance on the treatment of cryptoassets and smart contracts, the European Commission’s Digital Finance Strategy and FinTech Action Plan, as well as analysing significant recent cases.
More Information
Critical Acclaim
Contributors
Contents
More Information
This fully updated and revised second edition provides a practical examination of the opportunities and challenges presented by the rapid development of FinTech in recent years, particularly for regulators, who must decide how to apply current law to ever-changing concepts driven by continually advancing technologies. It addresses new legislative guidance on the treatment of cryptoassets and smart contracts, the European Commission’s Digital Finance Strategy and FinTech Action Plan, as well as analysing significant recent case law.
Key features of the second edition include:
• Discussion of the impact of Brexit and the Covid-19 pandemic on the development and adoption of FinTech products
• Detailed treatment of a broad spectrum of legal and regulatory issues in the FinTech sector, featuring insights from 33 experts from 10 countries
• Examination of potential blockchain applications in the financial services industry, with a focus on smart contracts and regulatory challenges to widespread adoption
• Analysis of the key legal, regulatory and compliance issues surrounding FinTech developments in banking, payments and fundraising, from patents and robo-advice to novel solutions for supporting innovation such as regulatory sandboxes.
Offering a thorough guide to the sector for practical use, this book will be invaluable for in-house lawyers as well as law firms looking for an overview of the legal and regulatory landscape of FinTech. It will also be an essential text for academics and students looking to understand the key issues in the field, as well as those interested in perspectives across the breadth of the sector.
Key features of the second edition include:
• Discussion of the impact of Brexit and the Covid-19 pandemic on the development and adoption of FinTech products
• Detailed treatment of a broad spectrum of legal and regulatory issues in the FinTech sector, featuring insights from 33 experts from 10 countries
• Examination of potential blockchain applications in the financial services industry, with a focus on smart contracts and regulatory challenges to widespread adoption
• Analysis of the key legal, regulatory and compliance issues surrounding FinTech developments in banking, payments and fundraising, from patents and robo-advice to novel solutions for supporting innovation such as regulatory sandboxes.
Offering a thorough guide to the sector for practical use, this book will be invaluable for in-house lawyers as well as law firms looking for an overview of the legal and regulatory landscape of FinTech. It will also be an essential text for academics and students looking to understand the key issues in the field, as well as those interested in perspectives across the breadth of the sector.
Critical Acclaim
‘A proper textbook with impressive chapter authors who know their stuff, and someone who has carefully curated and edited it all into one cohesive and comprehensive tome. When it comes to this book, that is exactly the sense of reassuring authority the reader takes away. This book delivers the sort of tangible, dependable reassurance that often feels out of reach when sifting through contradictory articles online on subjects such as AI, blockchain, crypto, defi and fintech generally. This is an old school textbook on a very modern subject, and as such, it is a very welcome addition to my desk library. The only question is how long it will take until one of my colleagues pinches it....’
– Vanessa Whitman, Legal Women
‘I would recommend this edition to both students and practitioners of Fintech. Helpfully, it provides thoughtful summaries of the legal and regulatory position on a range of Fintech-related topics and gives a good sense of the developing areas in this fast-moving sector. Crucially, it places these observations in their market and international context.’
– Martin Cook, Head of Fintech, Burges Salmon LLP, UK
‘A sector variously described as innovative, disruptive, high risk and subject to regulatory arbitrage requires a new approach to business operations, lawyering and regulation. This book provides a toolkit for this new approach for anyone working at the intersection of finance, technology and regulation. The legal and regulatory overview and detail is second to none, but a small part of why this book is an essential reference and guide. We can all visit, and get lost in, the FCA, FINRA or MAS online rulebooks, but the objective here is to go beyond isolated black letter law and regulation. Readers will benefit from the authors’ extensive operational experience with practical application of cross-border regulations to business processes and commercial situations, backed up by industry knowledge and digitisation strategies. Leading experts navigate existing laws and regulations while guiding practitioners and regulators towards areas requiring more certainty in the future. This will resonate with those building FinTech ventures, whether as a startup, scaleup or within an institution, or indeed with those regulating them. The path ahead can be uncertain or not yet considered by industry and regulators, requiring interpretation and invention, such as developing your own iterative rulebooks along the way. FinTech: Law and Regulation provides invaluable insight and context to establish these key decision frameworks to master the rapidly evolving Fintech universe.’
– Paul Massey, Founder and CEO, Tabled, London, UK
‘FinTech sliced and diced, and utterly up to date. If only I had this beside me when I leapt into FinTech/RegTech. In a sector full of jargon, amid scale-ups that defy easy definition and rapidly disintermediate; FinTech: Law and Regulation breaks this all down for the reader then deep dives elegantly into the pressing issues.’
– Amy Wallace, General Counsel, Onfido, London, UK
‘The fast pace of technological change and regulation that follows it, are some of the greatest challenges and exciting opportunities for any FinTech lawyer. FinTech: Law and Regulation provides a superbly detailed, yet equally accessible, overview of some of the most important and disruptive technologies and the accompanying regulatory landscape. As a FinTech lawyer who has worked across banking, payments, crowdfunding, cryptocurrency, blockchain and legal optimisation, I highly recommend this work to anyone working in or considering entering this sector.’
– James Sullivan, Chief Operating Officer and General Counsel, Ziglu, London, UK
– Vanessa Whitman, Legal Women
‘I would recommend this edition to both students and practitioners of Fintech. Helpfully, it provides thoughtful summaries of the legal and regulatory position on a range of Fintech-related topics and gives a good sense of the developing areas in this fast-moving sector. Crucially, it places these observations in their market and international context.’
– Martin Cook, Head of Fintech, Burges Salmon LLP, UK
‘A sector variously described as innovative, disruptive, high risk and subject to regulatory arbitrage requires a new approach to business operations, lawyering and regulation. This book provides a toolkit for this new approach for anyone working at the intersection of finance, technology and regulation. The legal and regulatory overview and detail is second to none, but a small part of why this book is an essential reference and guide. We can all visit, and get lost in, the FCA, FINRA or MAS online rulebooks, but the objective here is to go beyond isolated black letter law and regulation. Readers will benefit from the authors’ extensive operational experience with practical application of cross-border regulations to business processes and commercial situations, backed up by industry knowledge and digitisation strategies. Leading experts navigate existing laws and regulations while guiding practitioners and regulators towards areas requiring more certainty in the future. This will resonate with those building FinTech ventures, whether as a startup, scaleup or within an institution, or indeed with those regulating them. The path ahead can be uncertain or not yet considered by industry and regulators, requiring interpretation and invention, such as developing your own iterative rulebooks along the way. FinTech: Law and Regulation provides invaluable insight and context to establish these key decision frameworks to master the rapidly evolving Fintech universe.’
– Paul Massey, Founder and CEO, Tabled, London, UK
‘FinTech sliced and diced, and utterly up to date. If only I had this beside me when I leapt into FinTech/RegTech. In a sector full of jargon, amid scale-ups that defy easy definition and rapidly disintermediate; FinTech: Law and Regulation breaks this all down for the reader then deep dives elegantly into the pressing issues.’
– Amy Wallace, General Counsel, Onfido, London, UK
‘The fast pace of technological change and regulation that follows it, are some of the greatest challenges and exciting opportunities for any FinTech lawyer. FinTech: Law and Regulation provides a superbly detailed, yet equally accessible, overview of some of the most important and disruptive technologies and the accompanying regulatory landscape. As a FinTech lawyer who has worked across banking, payments, crowdfunding, cryptocurrency, blockchain and legal optimisation, I highly recommend this work to anyone working in or considering entering this sector.’
– James Sullivan, Chief Operating Officer and General Counsel, Ziglu, London, UK
Contributors
Contributors: Sophia Adams-Bhatti, Douglas Arner, Colleen Baker, Claude Brown, Ross Buckley, Karen Butler, Peter Chapman, Sofya Cherkasova, Daniel Cooper, Simon Crown, Patricia L. de Miranda, Hubert de Vauplane, Anton Didenko, Tim Dolan, Mark Fenwick, Jane Finlayson-Brown, John Ho Hee Jung, Wulf A. Kaal, Charles Kerrigan, Byungkwon Lim, Charles Low, Jelena Madir, Gemma Nash, Kieran Pender, Ben Regnard-Weinrabe, Lee Reiners, Adam Robins, Mirjana Stankovic, Harriet Territt, Erik P.M. Vermeulen, Kevin Werbach, Anna Yamaoka-Enkerlin, Dirk Zetzsche
Contents
Contents:
Preface xxv
1 INTRODUCTION – WHAT IS FINTECH? 1
Jelena Madir
PART I PAYMENTS, ALTERNATIVE FINANCING AND CRYPTOASSETS
2 ADAPTING TO A CHANGING PAYMENTS LANDSCAPE 23
Ben Regnard-Weinrabe and Jane Finlayson-Brown
3 CROWDFUNDING 64
Peter Chapman, updated by Simon Crown and Adam Robins
4 CRYPTOASSETS AND INITIAL COIN OFFERINGS 90
Claude Brown, Tim Dolan and Karen Butler
5 CRYPTOCURRENCIES AND CENTRAL BANKS 121
Hubert de Vauplane
PART II BLOCKCHAIN AND DISTRIBUTED LEDGERS
6 BLOCKCHAIN IN FINANCIAL SERVICES 148
Colleen Baker and Kevin Werbach
7 SMART CONTRACTS 175
Jelena Madir
8 GOVERNING THE BLOCKCHAIN: WHAT IS THE APPLICABLE LAW? 199
Harriet Territt
9 LIABILITIES ASSOCIATED WITH DISTRIBUTED LEDGERS: A COMPARATIVE ANALYSIS 219
Dirk Zetzsche, Ross Buckley, Douglas Arner and Anton Didenko
10 CYBERSECURITY AND BLOCKCHAIN 242
Patricia L. de Miranda and Charles Kerrigan
11 BLOCKCHAIN AND PRIVACY 267
Daniel Cooper and Gemma Nash
PART III REGULATION AND COMPLIANCE
12 REGTECH AND SUPTECH: THE FUTURE OF COMPLIANCE 291
John Ho Hee Jung
13 THE RISE OF TECHFINS: REGULATORY CHALLENGES 317
Dirk Zetzsche, Ross Buckley and Douglas Arner
14 REGULATORY SANDBOXES 340
Byungkwon Lim and Charles Low
15 COMPLIANCE AND WHISTLEBLOWING: HOW TECHNOLOGY WILL REPLACE, EMPOWER AND
CHANGE WHISTLEBLOWERS 365
Kieran Pender, Sofya Cherkasova and Anna Yamaoka-Enkerlin
16 REGULATION OF ROBO-ADVISORY SERVICES 395
Lee Reiners
17 PATENTABILITY OF FINTECH INVENTIONS 420
Mirjana Stankovic
PART IV TECHNOLOGICAL INNOVATIONS IN LEGAL SERVICES
18 THE INNOVATION PROCESS IN LAW FIRMS 440
Sophia Adams-Bhatti
19 FUTURE LAWYERS, DIGITAL SKILLS AND SELF-LEARNING 470
Mark Fenwick, Wulf A. Kaal and Erik P. M. Vermeulen
Index 497
Preface xxv
1 INTRODUCTION – WHAT IS FINTECH? 1
Jelena Madir
PART I PAYMENTS, ALTERNATIVE FINANCING AND CRYPTOASSETS
2 ADAPTING TO A CHANGING PAYMENTS LANDSCAPE 23
Ben Regnard-Weinrabe and Jane Finlayson-Brown
3 CROWDFUNDING 64
Peter Chapman, updated by Simon Crown and Adam Robins
4 CRYPTOASSETS AND INITIAL COIN OFFERINGS 90
Claude Brown, Tim Dolan and Karen Butler
5 CRYPTOCURRENCIES AND CENTRAL BANKS 121
Hubert de Vauplane
PART II BLOCKCHAIN AND DISTRIBUTED LEDGERS
6 BLOCKCHAIN IN FINANCIAL SERVICES 148
Colleen Baker and Kevin Werbach
7 SMART CONTRACTS 175
Jelena Madir
8 GOVERNING THE BLOCKCHAIN: WHAT IS THE APPLICABLE LAW? 199
Harriet Territt
9 LIABILITIES ASSOCIATED WITH DISTRIBUTED LEDGERS: A COMPARATIVE ANALYSIS 219
Dirk Zetzsche, Ross Buckley, Douglas Arner and Anton Didenko
10 CYBERSECURITY AND BLOCKCHAIN 242
Patricia L. de Miranda and Charles Kerrigan
11 BLOCKCHAIN AND PRIVACY 267
Daniel Cooper and Gemma Nash
PART III REGULATION AND COMPLIANCE
12 REGTECH AND SUPTECH: THE FUTURE OF COMPLIANCE 291
John Ho Hee Jung
13 THE RISE OF TECHFINS: REGULATORY CHALLENGES 317
Dirk Zetzsche, Ross Buckley and Douglas Arner
14 REGULATORY SANDBOXES 340
Byungkwon Lim and Charles Low
15 COMPLIANCE AND WHISTLEBLOWING: HOW TECHNOLOGY WILL REPLACE, EMPOWER AND
CHANGE WHISTLEBLOWERS 365
Kieran Pender, Sofya Cherkasova and Anna Yamaoka-Enkerlin
16 REGULATION OF ROBO-ADVISORY SERVICES 395
Lee Reiners
17 PATENTABILITY OF FINTECH INVENTIONS 420
Mirjana Stankovic
PART IV TECHNOLOGICAL INNOVATIONS IN LEGAL SERVICES
18 THE INNOVATION PROCESS IN LAW FIRMS 440
Sophia Adams-Bhatti
19 FUTURE LAWYERS, DIGITAL SKILLS AND SELF-LEARNING 470
Mark Fenwick, Wulf A. Kaal and Erik P. M. Vermeulen
Index 497
