Legal framework for fintechs in Germany in 2020

Since the publication of the second edition of The Financial Technology Law Review in 2019, the German fintech market has matured. It seems that a consolidation phase has been reached where the fintech market’s influence on the financial sector is of rather evolutionary nature. Although a ‘winner-takes-all’ phenomenon was recently observed in the fintech industry (attributed to increased competition and high acquisition costs), fintechs are expected to benefit from new business opportunities, especially in the field of artificial intelligence, big data and distributed ledger technology.

One of our partners, Jens H. Kunz, took a closer look at some of the main regulatory topics and new developments in the legal framework for fintechs in Germany in the third issue of the Financial Technology Law Review, published in 2020. His article focuses especially on financial regulatory requirements regarding licences and marketing for typical fintech business models. In the process, he discusses topical issues such as digital identity and onboarding, digital markets, payment services and funding, cryptocurrencies, ICOs and security tokens as well as other business models.

The article should be of interest not only to German companies but also to foreign companies thinking of entering the German market, for example as regards regulatory requirements when offering cross-border services to German customers.

You can find the link to the complete article here: The Financial Technology Law Review