Fintech 2025

INTRODUCTION Contributed by: Adrian Ang, Allen & Gledhill LLP

Conclusion In summary, we expect the trends of AI, Embed - ded Finance and Super Apps to continue to dominate the fintech scene. We also expect to see continued growth in the volume and speed of cross-border payments, an increase in the use-cases for “single-currency stablecoins”, an increased regulatory focus on consumer pro - tection requirements, and an increased scru - tiny of how fintechs are complying with regu - latory requirements. The last point is expected to translate into increasing market demand for regtech solutions that allow fintechs to comply with regulatory requirements. For 2025, the Fintech Global Practice Guide con - tinue to cover a wide variety of areas, including new additions on anti-money laundering rules, reverse solicitation, the regulatory treatment of staking, lending and cryptocurrency derivatives, and responsibility for losses. I am sure the Fin - tech Global Practice Guide for 2025 will be a useful resource for all practitioners and partici - pants in the field. Acknowledgement The author would like to acknowledge and thank Alexander Fong and Benjamin Samyna - than, senior associates at Allen & Gledhill, for their invaluable assistance in the writing of this overview.

and fulfil value/wire transfer requirements, more efficiently. Moving forward, we would also expect to see an increased focus on the interoperability of these regtech solutions. For example, some value transfer solution providers may currently require that a transfer of cryptocurrency from fintech A to fintech X can only be accompanied with value transfer information if both fintech A and fintech X have adopted the same value trans - fer solution. As different fintechs A, B, C and D may adopt different value transfer solutions, a single fintech X receiving cryptocurrencies from all of these fintechs may need to adopt all of the different value transfer solutions used by its counterparties, which increases its compliance costs. Accordingly, there may be a growing push for regulators to require value transfer solution providers to be “interoperable”, to prevent such fragmentation and its associated costs. Scams and Responsibility for Losses Regrettably, the remarkable growth of the fin - tech industry has also attracted malicious actors seeking to exploit vulnerabilities and defraud individuals and businesses. Hence, such growth has come alongside a growth in losses due to scams. By one measure, USD1.02 trillion was lost to scams between August 2022 and August 2023. We would expect consumers and regula - tors alike to require fintechs to do more to guard against scams. For example, regulators may implement frameworks for determining when losses to scams should be borne by fintechs as opposed to end-consumers. These frameworks may also aim to better define responsibility amongst the different types of entities that are involved in the “scam chain”, such as financial institutions, consumers and telecommunication companies.

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