FCA, ASIC Ink FinTech Deal, Easing Barriers to Entry For Startups

FinTech proponents across the UK and Australia will see the cohesion of regulatory authorities in both countries as startups and firms expand into each others markets, prompting a heightened level of cooperation.

More specifically, both the UK's Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC) have signed a cooperation agreement that facilitates the expansion of FinTech startups in each respective regulatory jurisdiction. The initiative was designed to help eliminate select barriers to entry into both the UK and the Australian markets, which helps streamline business innovation across a variety of channels.

These include, among others, automated financial advice, crowd-sourced equity funding, digital Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term business models, many of which have caught fire in both the UK and Australia over the past year. Both countries have seen substantial investments in this space, a process that is expected to only increase in frequency due to the new regulatory privileges afforded by the FCA and ASIC.

In particular, fintech industries in the UK and Australia are estimated to yield annual revenues of around $9.52 billion and $985,000 respectively. In terms of specifics, ASIC has already dealt with approximately 75 start-ups, which include 10 licensing agreements while the FCA's innovation hub has supported over 200 businesses and authorized 18.

The new agreement will also help entice entry into both markets given the impetus provided by the joint act – an initiative that is expected to promote overall investment and startup growth in the UK and Australia.