Fintech

Our current research focus is fintech regulation. The term "fintech" is an amalgamation of "finance" and "technology". It describes new technology-based services, business models and market participants in the financial markets. Popular examples are crowdsourcing, crypto currencies, regtech, initical coin offerings (ICOs), digital payment systems and robo-advisory.

Financial markets regulation is typically designed technologically neutral. It primarily regulates conduct and not the technology used by the market participants. This approach has its merits because it is flexible and open to new technological developments. However, sometimes the use of innovative technology does not fit well into the existing framework. Sometimes it even raises important questions about the interplay of man and machine.

The focus of our work is on distributed ledger technology (DLT) and blockchain. The current development is remarkable. Before 2017, Bitcoin or initial coin offerings were only known to tech enthusiasts. Only four years later, various countries have introduced legislation regarding the freshly-dubbed ‘crypto assets’. Issues such as the suitability of cryptocurrencies for money-laundering as well as their impact on energy consumption and climate change have found their way into the general media. While some countries compete to create a suitable legal ‘crypto environment’, others react with crackdowns on the fledging crypto scene. The establishment of DLT-based digital currencies seems only a question of time.

This site is supposed to give an overview of our work in research and teaching in the field of fintech regulation.

At present, the pressing question is how blockchain technology fits into the current legal framework. Are token offerings subject to prospectus requirements; and if so, which ones? What is the regulatory status of crypto exchanges? Can cryptocurrencies be considered as legal tender? Are crypto assets subject to taxation like ‘normal’ assets? Where are the gaps in the regulatory quilt?

In this book, we attempt to answer as many of these questions as possible. The focus is on the laws of the European Union. This is not just because of the size of the internal market and the strength of its economies. Although commonly considered as sluggish, EU lawmakers have demonstrated surprising agility in implementing regulation specifically tailored to crypto assets. The 5^th Anti-Money Laundering Directive from 2018 was one of the first pieces of legislation that specifically addressed crypto-specific issues. The extensive Regulation for Markets in Crypto Assets (MiCAR) is expected to come into force in 2022. This will be accompanied by a pilot regime for crypto marketplaces. In addition, the existing EU rules for financial markets regulation have proved surprisingly well-suited for tackling the challenges presented by crypto assets. These EU-law based issues are discussed in the first half of this book, including inter alia EU private international law, consumer protection law, financial services and prospectus law, payment services law, data protection law, taxation law and funds regulation.

However, many countries, both inside and outside the EU, have enacted national legislation on crypto assets. Therefore, the second half of the book provides an overview of the development of crypto regulation in various major financial marketplaces. These country reports include inter alia the US, the UK, France, Germany, Russia, the PR of China, Singapore, Australia and New Zealand. It is our hope that these chapters allow further comparisons between jurisdictions and promote the international debate on best practice in the crypto space.

Maume/Maute/Fromberger, "The Law of Crypto Assets", (Beck-Shop).