Fintech Regulation in Estonia

Abstract

Our analysis focuses on Estonian Fintech companies with particular interest in the reciprocal effects of Fintechs and the regulatory environment in which they operate. To this end, we give an overview of the legal implications and foundations of regulated and unregulated larger categories of activities in this paper, distinguishing between transactional banking (primarily payment interfaces and infrastructure) and alternative financing and investment (novel lending and capital raising and borrowing/investment options). We discuss the unregulated Fintech activities and the ‘market support’ services to the extent that they are connected to the two wider categories of financial services listed above.

Keywords: Fintech, Estonia, regulation, law