It is common practice for financial services regulators to sign Memorandum of Understanding (MoU) with their counterparts for cooperation and exchange of information in the field of conventional financial services. These MoU may now have to be extended to collaboration in Fintech and financial innovation.
It may be foreseen that such collaboration will improve the cross-border regulation of fintech and digital assets through: a. Harmonised/Equivalent fintech regulatory frameworks across jurisdictions which is an effective tool against regulatory arbitrage and will enable licensed fintech business to have access to other markets; b. Bridging the expertise gap between jurisdictions for efficient framework development; and c. Capacity building and knowledge sharing in the field of fintech supervision for financial services regulators.