The rise of Bitcoin and cryptocurrencies has created a network born global nevertheless blockchain technology brought regulation issues that local authorities still need to tackle. It highlights the importance of RegTech (regulation technology) to transform the current framework to foster the adoption of blockchain and new financial solutions. Traditional finance communities that gathered at the last Asian Financial Forum (AFF) are integrating Regtech topics. They are also looking for other financial innovation, that is not only based on Fintech, such as green finance and financial inclusion.
From Hong Kong’s perspective, the cooperation among the Guangdong – Hong Kong – Macao Greater Bay Area is the first step to consolidate its position as a global Fintech hub. The Greater Bay Area is a perfect stone to go global enjoying the benefits of the vast market and the proximity with Shenzhen to innovate, but that doors must be opened up further. The second step would be the cooperation between Asian Fintech Hubs through associations that foster collaboration inside the local fintech community as well as with other Asian communities through an Asia-Pacific Fintech Network.
Coordinating regulation frameworks is one of the reasons why it is so important to connect global fintech hubs. The aim is to manage risk and prevent legal uncertainty brought by new practices such as Initial Coin Offering (ICO). Thus, 29 regulatory bodies launched the Global Financial Innovation Network’s regulatory sandbox for companies to apply for a cross-border testing pilot. Financial innovation is not only about digital but also sustainability thanks to working groups led by green finance key players such as Finance for Tomorrow by Paris Europlace in Europe and Hong Kong Green Finance in Asia.
This article is part of the Global Fintech Ecosystem series