What exactly is Fintech

Fintech is a key competency that has developed rapidly in the last decade. These are financial innovations that are used by any company to enhance and optimize financial systems and functions. In 2020, investments in fintechs will total $10,631 billion USD. These technologies enable businesses to alter their interactions with their customers.

Fintech in Asia, the United States, and Europe has replaced outdated ideas, allowing market participants to diversify their product offerings, effectively manage risk, and begin working with a broader client base. To grow and develop, businesses must consider all of their problems and implement the key fintech trends of 2022.

Global digitalization and new financial technologies necessitate modern solutions that include legal considerations. Comprehensive legal support for a fintech project will allow you to better understand the fintech industry and ensure that the project is carried out within the framework of various jurisdictions' laws.

The term «FinTech» refers to innovative technologies that use software and other methods of data transfer, including «cryptocurrencies», specifically Bitcoin. The launch of a fintech startup in Europe, Asia, the United States, or Australia aims to transform existing financial services markets by implementing innovations to increase their efficiency.

Fintech legal regulation

Technological advancements are opening up new markets for FinTech, allowing FinTech-focused financial institutions and technology providers to operate more efficiently. The acceleration of technological change, combined with changing customer preferences, has an impact on the structure, delivery, and consumption of financial services. Simultaneously, FinTech regulatory environments in various jurisdictions are evolving to meet the demands of today's world of financial transparency.

Anti-corruption and investment in illegal transactions (AML/CTF) obligations are also part of fintech regulation in Australia, Europe, Asia, and other parts of the world. FinTech companies will be required to comply with all constantly changing AML / CTF conditions in order to comply with the conditions of financial transparency in many jurisdictions. To comply with all legal requirements, you must first thoroughly understand them. To do so, you should seek advice on the regulation of technological innovations in the financial services sector.

Across the entire industry value chain, the following areas are experiencing tangible innovation:

• trading and clearing; 
• lending; 
• information fintech; 
• retail and consumer banking; 
• insurance; 
• money transfers; 
• blockchain and cryptocurrencies; 
• artificial intelligence and robotics. 

Businesses must structure their operations around laws and regulations. Fintech regulation varies by jurisdiction, and each country's controlling fintech authorities have their own approach to the implementation of specific fintech projects. You must consider the above factors before registering a fintech company in the United States or any other country of your choice.

A FinTech lawyer's assistance is required because a FinTech project must be carried out within the framework of the law while protecting and preserving important assets such as intellectual property, know-how, specialists, and prestige. Furthermore, the assistance of a lawyer is required because all types of agreements with all business participants must be legally valid, enforceable, and protect commercial interests.

It is necessary to follow obligations when registering a fintech company abroad, taking into account international treaties, conventions, and declarations.

Comprehensive legal counsel for fintech and cryptocurrency projects

Many complex legal issues have arisen as a result of the widespread use of cryptocurrencies and other digital assets, including:

• сontrolling status; 
• compliance with all conditions; 
• corporate law; 
• securities transactions; 
• creating funds, launching ETFs; 
• venture capital for funding; taxation; 
• corruption fight; 
• litigation and law enforcement.

The analysis of the regulatory environment of the jurisdiction of your choice and obtaining a crypto license is an important aspect that specialized specialists providing legal support in registering a company for fintech must take into account.

When issuing tokens, registering a crypto exchange in a foreign jurisdiction, or launching a crowdfunding platform in a foreign jurisdiction, obtaining a license for crypto activities in Asia or Europe becomes the most important factor.

For the legality of these activities, it is worthwhile to examine the regulatory bodies of each state:

• Securities and Exchange Commission.
• The central bank.
• Bodies in charge of financial institutions.

Financial solutions emerging beyond the reach an equilibrium interbank money market areas via inventive and online streams, tools, and structures are referred to as alternate solution finance.

These are some examples:

• рeer-to-peer lending and equity crowdfunding; 
• equity crowdfunding (ECF); 
• virtual asset services; 
• token generation (TGE).

P2P lending platforms, companies selling tokens, firms providing storage services for crypto assets, digital wallet providers, and others are the primary participants in such markets. Consultants should have extensive legal knowledge of launching a cryptocurrency startup while keeping the rules and regulations in mind.

Our specialists provide tailored solutions for clients who have a strong understanding of the rapidly evolving space, based not only on the rules of financial services management in various countries, but also on the rapid integration of FinTech into everyday processes.

Our qualified team is ready to provide you with consulting services in the following areas:

• Management of crypto exchanges across continents; 
• the legitimacy of the crowdfunding platform; 
• legal issues surrounding the launch of innovative payment services, trading and lending, alternative financing; 
• and the launch of ICO, STO, and IEO.

Many regions' cryptoasset management and operation initial specification conditions on the clarification and equality of special offers, sector AML/KYC prerequisites, and where investment separation is possible. If lenders traded on P2P lending platforms are classified as securities, they may be required to obtain additional licenses in able to market on the resale market.

Many entrepreneurs are now faced with critical project questions (operating in the booming blockchain technology industry). Any cryptocurrency-based startup requires a compliance specialist who can assist you in selecting the appropriate jurisdiction, ensuring compliance with all regulations, and providing the following services:

• will consult on the legality of the proposed business model for launching a cryptoasset-based project; 
• will guide you through the complex and time-consuming aspects of registering a cryptocompany in Europe, Asia, the United States, and other parts of the world; 
• will assist you in obtaining licenses and other important state permits for a crypto project; 
• will advise on compliance with AML/CTF rules and other corporate governance rules; will advise on cybersecurity and privacy requirements.

How can we assist?

Fintech is a rapidly evolving field that is transforming retail banking, payment services, asset management, and fundraising. Participants must consider all potential risks, including regulatory challenges, competition, data leakage, and cybercrime, among others.

The growing popularity of cryptocurrencies and other digital assets has resulted in a plethora of complex legal nuances involving regulatory status and corporate law, securities transactions, fund formation, and enforcement.

From a legal standpoint, our experts can provide appropriate assistance and support for fintech projects. Our team can assist you with:

• In selecting a country for a startup fintech project based on tax burdens and business model definition
• In advising on all aspects of the launch of FinTech startups in various sectors, investing in blockchain projects, and implementing crowdfunding projects.
• Consultations on digital asset regulation.
• Assistance in obtaining permits for crypto-related activities.
• In the process of obtaining permission from a payment institution and an electronic money institution.
• Collaborating with financial authorities and representing the company's interests in government institutions.
• Legal counsel on Big Data projects
• With legal assistance in the listing process on cryptocurrency exchanges.
• With advice on legislation implementation (MiFID, PSDII, CMD, Crowdfunding, etc.) and assistance in developing internal rules in accordance with a specific jurisdiction's current legislation.
• With guidance on how to comply with the General Data Protection Regulation (GDPR).