Fintech and Payments Regulation: Analytical Framework

39 Pages Posted: 18 Jun 2020

See all articles by Tanai Khiaonarong

Tanai Khiaonarong

International Monetary Fund (IMF)

Terry Goh

affiliation not provided to SSRN

Date Written: May 2020


Financial technology (Fintech) has prompted authorities to consider their potential financial stability benefits, risks, and effective regulation. Recent developments suggest that regulatory approaches and their legal foundations need to augment entity-based regulation with increasing focus on activities and risks as market structure changes. This paper draws on recent international experiences in modernizing legal and regulatory frameworks for payment services. An analytical framework based on a four-step process is proposed-(i) identifying payment activities; (ii) licensing entities and designating systems; (iii) analyzing and managing risks, and (iv) promoting legal certainty. As payment activities evolve and potential systemic risks heighten, adherence to international standards and additional regulatory requirements should be warranted.

Keywords: Fintech, payment services, central bank, regulation

JEL Classification: E42, E58, E59, G28, K20, O38

Suggested Citation

Khiaonarong, Tanai and Goh, Terry, Fintech and Payments Regulation: Analytical Framework (May 2020). IMF Working Paper No. 20/75, Available at SSRN:

Tanai Khiaonarong (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Terry Goh

affiliation not provided to SSRN

No Address Available

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