Fintech Regulation

  • Nafis Alam
  • Lokesh Gupta
  • Abdolhossein Zameni


Well-established financial regulation is the key to innovation in the financial services industry; and with the emergence of numerous startups in the domain of payment, remittance, open banking, digital currency, there is much more need of formal regulation and oversight for the new participants of the finance industry. Regulatory sandboxes are giving innovators the opportunity to understand the expectations of customers in the financial services sector. Sandbox tests can help also help participants gather valuable regulatory input on design, evaluate strategy and devise potentially safer financial products. This chapter explores the need of regulation for fintech providers and presents a case study on fintech regulation in Malaysia, one of the key hub of Islamic finance.


  1. BCBS (Basel Committee on Banking Supervision). (2018). Sound Practices, Implications of FinTech Developments for Banks and Bank Supervisors. Available at:
  2. BIS. (2018). FSI Insights on Policy Implementation—No 9. Innovative Technology in Financial Supervision (Suptech)—The Experience of Early Users. Available at:
  3. Blumenstock, J. E., Callen, M., & Ghani, T. (2016). Mobile-Izing Savings with Automatic Contributions: Experimental Evidence on Present Bias and Default Effects in Afghanistan. Available at:
  4. BNM (Bank Negara Malaysia). (2017). Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT)—Money Services Business (Sector 3) (Supplementary Document No. 1). Available at:
  5. CGAP. (2017). RegTech: Are Supervisors Ready for the Data Revolution? Available at:
  6. CGAP. (2018). RegTech and Digital Finance Supervision: A Leap into the Future. Available at:
  7. DNA. (2018). Equity Crowdfunding Report Card for Malaysia in 2018. Available at:
  8. EBA (European Banking Authority). (2018). Roadmap on FinTech. Available at:
  9. FCA. (2019). RegTech Applies to New Technologies Developed to Help Overcome Regulatory Challenges in Financial Services. Available at:
  10. Fintech Malaysia. (2019). PitchIN Owns 75% of the Equity Crowdfunding Market in 2018. Available at:
  11. MacDonagh, M. (2016). Artificial Intelligence Set to Transform Regulatory Compliance. Banking Tech. Available at:
  12. SC. (2016). The Reporter, April–August, 2016. Vol. 7(3). Available at:
  13. SC. (2017). The Reporter, September–March, 2017. Vol. 7(4). Available at:
  14. SC. (2019). Guidelines on Recognized Markets. Available at:
  15. The Economist. (2017). Big Data, Financial Services and Privacy. Available at:
  16. TheStar. (2019). Law on Digital Currency Effective Tuesday, Says Guan Eng. Available at:
  17. UNSGSA FinTech Working Group and CCAF. (2019). Early Lessons on Regulatory Innovations to Enable Inclusive FinTech: Innovation Offices, Regulatory Sandboxes, and RegTech. New York/Cambridge: Office of the UNSGSA and CCAF. Available at:

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Nafis Alam
    • 1
  • Lokesh Gupta
    • 2
  • Abdolhossein Zameni
    • 1
  1. 1.Henley Business SchoolUniversity of Reading MalaysiaIskandar PuteriMalaysia
  2. 2.RM ApplicationsKuala LumpurMalaysia

Personalised recommendations