The political and social climate towards RegTechs is positive.
RegTechs are not subject to an authorization requirement in and of themselves, because, first and foremost, their business modell consists of helping in handling the compliance with the growing regulation in the banking area.
A key word in this context is the blockchain, whose application is conceivable in different areas. Supervisory assessments hinge on how the technology might be applied and which activities are to be conducted with it. Generally, when assessing a business model or business activities and the associated use of blockchain technology, the following questions can be expected to figure prominently in deciding whether authorisation is required:
- Which areas and/or which financial instruments will the business activity involve?
- Can the regulatory requirements for the planned business activity actually be fulfilled by using blockchain technology?
- Is the business activity subject to legal provisions on the prevention of money laundering, terrorist financing and other criminal offences?
Due to the wide range of potential applications of blockchain technology, it would be both difficult and inappropriate to make any general statements about notification requirements.
It is therefore still too early for any comprehensive assessment of blockchains and their potential applications because they are developing so rapidly.