when it comes to businesses before the adoption of fintech a business owner or startup would have gone to a bank to secure financing or startup capital if they intended to accept credit card payments they would have to establish a relationship with a credit provider and even install infrastructure such as a landline connected card reader now with mobile technology those hurdles are a thing of the past 
regulation and fintechfinancial services are among the most heavily regulated sectors in the world as such regulation has emerged as the number one concern among governments as fintech companies take off according to the u s department of the treasury while fintech firms create new opportunities and capabilities for companies and consumers they are also creating new risks to be aware of data privacy and regulatory arbitrage are the main concerns noted by the treasury in its most recent report in november 2022 the treasury called for enhanced oversight of consumer financial activities specifically when it comes to nonbank firms 6regulation is also a problem in the emerging world of cryptocurrencies initial coin offerings icos are a form of fundraising that allows startups to raise capital directly from lay investors in most countries they are unregulated and have become fertile ground for scams and frauds regulatory uncertainty for icos has also allowed entrepreneurs to slip security tokens disguised as utility tokens past the u s securities and exchange commission sec to avoid fees and compliance costs because of the diversity of offerings in fintech and the disparate industries it touches it is difficult to formulate a single and comprehensive approach to these problems for the most part governments have used existing regulations and in some cases customized them to regulate fintech 