A Critical Analysis of The Use of Regulatory Technologies by the European Financial Sector

Abstract

This dissertation focuses on the Regtech phenomena from a legal perspective in the context of the EU. Building on the previous literature and examining existing legislation manly the EBA Regtech report and creating a deeper understanding of the inner workings of Regtech and its role of a compliance tool and the financial sector and it’s role in the future labeled as Regtech 3.0. this study will contain a descriptive narration on the concept of Regtech from historical, technical and technological perspective. Examining its rule as a compliance tool in the financial sector. Highlighting its market segmen and it’ rule on streaming AML and KYC and incorporated technologies and explore it’s benefits and advantages while examining it’s operational, legal, market risks. This dissertation analyze its current state the European Union and unregulated. Applying regulation theory to test the hypothetical impact on the Regtech industry. This dissertation argues that a pan European sandbox would facilitate a massive positive impact on the industry.