For example, many states have enacted legislation governing the extension of credit and money transmission in their jurisdictions, combined with licensing requirements for such activities. Similarly, in the EU, Fintech companies operate under passportable licenses.
In the EU, certain services provided by FinTech companies, such as retail banking, payment services and financial market services, are subject to the panEuropean ‘passporting’ regime: a company licensed in one EU Member State (home state) may provide such services in another EU Member State (host state), e.g. via a local branch, using its home-state license as a sort of “European passport”.