That’s why the objectives of the German G20 presidency include taking stock of the different regulatory approaches. Our aim is to develop a set of common criteria for the regulatory treatment of fintechs. Fintechs should not base their business models on regulatory loopholes. Using lax regulation to attract business is a mistake that was already made before the latest financial crisis.
Whatever we do, we need to avoid a regulatory race to the bottom. Rather, we should go for a level playing field. To quote the words of the former ECB President Jean-Claude Trichet who said in 2010: “(…) the crisis has exposed the risk of regulatory arbitrage, shedding a more negative light on the competition among different systems and rules."