Inadequate and strict regulations are hampering growth in
Asia's fintech sector, despite the technology surging in the
region during recent years
Hong Kong and Singapore have each established committees
tasked with reviewing the regulatory environment for fintech
with the aim of securing positions as fintech hubs.
But counsel in Hong Kong argue that the absence of a
regulatory framework for fintech and the reliance instead on
loosely relevant regulations, which are often stringent, have
suffocated the growth of new digital platforms.
"The regulatory environment in Hong Kong is set up to
regulate very large bricks‐and‐mortars‐based
financial institutions. The regime is complex and relies on
compliance expenditure," said
Ian Wood, partners at Simmons & Simmons in Hong Kong.
"Start‐ups don’t have the infrastructure or
funds to be able to comply with the regulations," he added.
The Hong Kong government published a report on
financial technologies in...