A Principles-Based Regulation for FinTech?

Abstract

The present article aims to explore whether we should adopt a principles-based regulation—i.e., one that is less prone to legislative prolixity and more favorable to open-ended legal formulations—to frame FinTech activities within the national legal system. The answer can only be given after an analysis of the current functioning of our legal order. The repetitive assertion that principles-based regulation is the best solution for innovation hinders a thorough examination of its contours, the advantages and disadvantages of this approach, and a comparison with its greatest benefits. It also prevents the identification and elimination of ineffective, counterproductive, and contradictory elements within our legal framework. Furthermore, it seeks to determine whether a principles-based regulation can foster innovation while simultaneously safeguarding essential legal values, as some authors argue.