Fintech Regulations in Europe and USA

Bálint Molnár (), Galena Pisoni (), Hanna Kristín Skaftadóttir () and Szabolcs Korba ()
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Bálint Molnár: Eötvös Loránd University of Budapest
Galena Pisoni: York Business School, York St John University
Hanna Kristín Skaftadóttir: Bifröst University
Szabolcs Korba: Eötvös Loránd University of Budapest

A chapter in Transparency in FinTech, 2025, pp 151-172 from Palgrave Macmillan

Abstract: Abstract The rapid evolution of financial technology (fintech) has significantly transformed the global financial ecosystem, necessitating responsive and forward-thinking regulatory frameworks. This paper provides a comparative analysis of fin-tech regulation in the European Union (EU) and the United States (US), highlighting their divergent approaches in fostering innovation, ensuring consumer protection, and addressing emerging technological and financial risks. While the EU employs a harmonized and prescriptive regulatory model exemplified by the Revised Payment Services DirectiveRevised Payment Services Directive (PSD2), General Data Protection RegulationGeneral Data Protection Regulation (GDPR), and Digital Operational Resilience ActDigital Operational Resilience Act (DORA), the US adopts a more fragmented, innovation-driven strategy, often resulting in regulatory inconsistencies and arbitrage opportunities. Through thematic analysis of selected studies, this paper identifies key regulatory domains, including open banking, data privacy, crypto-asset oversight, and the implementation of RegTechRegTech and SupTechSupTech solutions. It also evaluates the role of regulatory sandboxesRegulatory sandboxes and sustainability initiatives in shaping fintech policy. The findings suggest that while the EU’s structured framework enhances trust and stability, it may pose challenges to flexibility and market access, particularly for emerging sectors.

Keywords: Fintech regulations; Regulatory sandbox; Crypto-asset regulationCrypto-asset regulation; Data protection; Privacy approachesPrivacy Approaches (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/978-3-032-03523-3_6

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