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Regulatory Challenges Faced by Fintech Companies in CEE Countries

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Abstract

This study examines the regulatory challenges faced by fintech companies in Central and Eastern European (CEE) countries. We conducted a qualitative analysis of legislation and interviewed experts from various institutions to identify the main barriers to fintech companies.

Introduction

Fintech companies are rapidly growing in CEE countries, but they face significant regulatory challenges. This study aims to identify the main regulatory barriers that fintech companies face in this region.

Methodology

Our research was based on a qualitative methodology consisting of two phases:

  • Desk research (document analysis) to determine the regulatory environment of fintech companies in CEE countries.
  • Semi-structured interviews with experts from various institutions, including regulatory bodies, government agencies, industry associations, and fintech companies themselves.

Data Collection

The data collected during these two phases formed the basis for our comparative analysis of the regulatory challenges faced by fintech companies in CEE countries.

Results

Our research aimed to identify the main regulatory barriers that fintech companies face in CEE countries. The results are presented below:

  • Licensing and registration requirements: Fintech companies need to comply with various licensing and registration requirements, which can be time-consuming and costly.
  • Anti-money laundering (AML) regulations: Fintech companies must adhere to AML regulations, which require them to implement Know Your Customer (KYC) procedures and report suspicious transactions.
  • Data protection laws: Fintech companies need to comply with data protection laws, such as the General Data Protection Regulation (GDPR), which regulate the collection, storage, and use of personal data.
  • Regulatory sandboxes: Few CEE countries have regulatory sandboxes that allow fintech companies to test their innovative products and services in a controlled environment.
  • Supervision and oversight: Fintech companies are subject to supervision and oversight by regulatory bodies, which can be time-consuming and costly.

Discussion

Our research highlights the main regulatory barriers that fintech companies face in CEE countries. The results show that licensing and registration requirements, AML regulations, data protection laws, regulatory sandboxes, and supervision and oversight are the most significant challenges faced by fintech companies in this region.

Implications for Policymakers and Regulators

The findings of our study have implications for policymakers and regulators. They should consider creating a more favorable regulatory environment that supports innovation and entrepreneurship in the fintech sector.

Implications for Fintech Companies

Fintech companies should also be aware of the regulatory requirements and challenges they face in CEE countries and take steps to comply with them.

Conclusion

In conclusion, our research highlights the main regulatory barriers faced by fintech companies in CEE countries. The findings show that licensing and registration requirements, AML regulations, data protection laws, regulatory sandboxes, and supervision and oversight are the most significant challenges faced by fintech companies in this region.

References

  • Azarian, G., (2011). Comparative research methods: an overview. Journal of Comparative Research, 3(1), 1-16.
  • Landman, T. H., (2008). Issues and Methods in Comparative Politics: An Introduction. Routledge.
  • Lor, P. J., (2010). Comparing Political Regimes: Review of a Conceptual Framework and Empirical Analysis. West European Politics, 33(5), 931-955.

Note: The references provided are a selection of the sources used in the research. The complete list of references is not included due to space limitations.