Harmonizing and coordinating financial policies has been the underlying strength behind the creation of trans-border finance. In the previous two decades, there has been significant work done on there is the emergence of exotic, new financial products in the market.
Though the crypto space has been a brave world for the financial regulators and the panelists on an international roundtable themed on regulation at Consensus, all agreed unanimously that the regulation has not in any way inhibit trans-border payment and transactions.
The general manager of Crypto.com in the United Kingdom, Teana Baker, said that the sandbox of the Financial Conduct Authority in the UK has evolved to an initiative called the Global Financial Innovation Network which is first launched in the early days of fintech. The initiative has now participated with the major regulatory agencies, including the Securities and Exchange Commission (SEC) on both sides of the Atlantic.
“There are agencies in the United States that have been involved with this initiative recently and basically are the whole alphabet of agencies.” She mentioned during the panel discussion themed on regulation at Consensus. “The innovative hub network has helped the Financial Conduct Authority collaborate with other authority.”
However, this initiative is not focused on the Atlantic alone. An example could be the 2016 fintech signed between the FCA of the United Kingdom and the MA (Monetary Authority) of Singapore. This was possible because of the follow-up bridges established with Hong Kong, China, South Korea, and Australia.
Some of the most aggressive fintech startups in the world that permit capital to move across the international borders with quick settlements and low fees, such as Revolut and Wise, previously known as TransferWise, called the UK their home for a reason.
A consultant on digital assets, and a special advisor to the Financial Services Commission of Mauritius, Loretta Joseph, said one of the other strengths of the United Kingdom when it comes to regulatory leadership is its involvement in proliferating Common law across the globe.
With the help of the colonial legacy of the UK, Common law has increased throughout the world to both emerging markets and financial hubs from Canada, the United States, Singapore, Hong Kong, and Bermuda to India and Pakistan. With the spread of the common law comes an easily accessible legal framework across all authorities.