“The EU’s efforts to regulate financial markets has opened new opportunities for global fintechoperators looking for universal standards to tap into the lucrative 28-country marketplace. While over-regulation can stifle growth, the fintechindustry, in pursuit of consumer trust, has a lot to gain from a clearly defined regulatory framework.“Fintech startups will need a very clear regulatory and compliance strategy as well as their product and marketing strategies. The new regulatory environment is beneficial for thosefintech companies that are building data-driven businesses with transparency and data-integrity as the backbone,” said Marta Sjögren from Northzone, a Stockholm-based investment fund.
Regulation often is an entry barrier because companies must be licensed by regulatory bodies to do business in each jurisdiction. For startups that want to expand, compliance is mandatory and the financial system has low tolerance for risk.”
Sourced through Scoop.it from: techcrunch.com