Dirk A. Zetzsche, Marian Unterstell, Ross P. Buckley, Douglas W. Arner
European Law Journal, Volume 31, Issue 3, pp. 203-226
Published online: November 2025
Follow the research activities and scholarship of the Faculty of Law, The University of Hong Kong
Abstract: This article examines how digital payment innovation and supporting initiatives, such as infrastructure and regulation, can foster micro, small, and medium enterprise (MSME) access to finance. This expanded access in turn supports broader sustainable development as reflected in the United Nations Sustainable Development Goals (SDGs). Achieving these goals requires thoughtful consideration and management of technological and a range of other risks and impacts across jurisdictions and governance levels.
Digital payment platforms serve as collectors, aggregators and (in some cases) providers of MSME financial and other data. This supports lending, low-cost agent-assisted financial transactions, financial products, and services by conventional banks, micro-finance institutions (MFIs), and non-bank financial institutions. Importantly, the data provided by these platforms can facilitate cash flow analysis and factoring (a form of alternative credit data) in which MSMEs use receivables as collateral (complementing other forms of collateral, such as real properties) to access finance within traditional lending institutions or elsewhere.
As consumer confidence in e-commerce platforms boosts the digital presence of MSMEs, new markets for MSMEs (particularly small retail shops, such as “mom-and-pop” stores providing last-mile services to unbanked and underserved segments in remote areas) emerges. Yet, there have been increasing concerns among policymakers and regulators at national, regional, and international levels......(Please click here to read the full text.)
"Building Open Finance: From Policy to Infrastructure"
Douglas Arner, Ross Buckley, Christine Wang, and Dirk Zetzsche
Notre Dame Journal of International & Comparative Law
Volume 15, Issue 1 (2025)
Published online: June 2025
Abstract: As one of the most digitalized sectors of the economy, finance is increasingly dependent on data. Over the past decade, the implementation of Open Banking and Open Finance in an increasing number of major jurisdictions around the world, including the European Union (EU), the United Kingdom (UK), Australia, Brazil, and the United Arab Emirates (UAE), seeks to break down data silos, empower consumers, and increase competition among financial service providers, aiming to maximize the value of financial data for innovation, growth, and competitiveness. In addition to mandatory requirements, other governance approaches to Open Finance, including collaborative arrangements and voluntary initiatives, are emerging. For example, Singapore and Hong Kong are actively supporting the development of Open Finance through collaboration between regulators and industry, while both China and India are seeking to develop new approaches to making data available to support development, innovation, and competitiveness. In the United States (US), industry associations have promoted Open Finance practices, and a new mandatory rule from the Consumer Financial Protection Bureau (CFPB) on personal financial data rights is currently pending.
There are complex problems in the interaction between financial regulation and data governance in Open Finance. Customer data shared through an Open Finance system is both subject to financial regulatory requirements, such as rules governing the collection, processing, and use of financial data, and to the general governance framework for data protection. Furthermore, Open Finance initiatives adopted by different jurisdictions affect information sharing in domestic financial markets and in the cross-border transfer of financial data. The trend towards data localization and the asymmetry of data sharing leads to an unlevel playing field between market players, thereby exacerbating the problem of regulatory fragmentation in Open Finance regimes. Given the evolving nature of digital finance and the complexity of integrating data into its process, the main challenge is to develop appropriate governance approaches that can maximize the benefits of data sharing while mitigating new cross-cutting challenges in finance and data regulation.
Based on an analysis of experiences to date in leading jurisdictions, we synthesize a range of policy strategies to address the complex interplay of financial regulation and data governance inherent in building Open Finance. These hold important lessons also for the US as it moves forward. The multi-disciplinary nature of Open Finance requires coordination between regulators and industry to ensure policy coherence and technical interoperability. Where financial and data regulatory regimes intersect, it is important to establish a collaborative forum and/or provide general guidance to facilitate a better understanding of Open Finance governance and improve consistency in regulatory action across sectors. In response to the increasing digitalization of the economy, there is also the need to expand the scope of data sharing from the financial sector to other industries, and thus move towards a broader Open Data framework.
"Centralization in Decentralized Finance: Systemic Risk in the Crypto Ecosystem and Crypto’s Future as a Regulated Industry"
Douglas W Arner, Tanvi Ratna, Sijuade Animashaun, Jatin Bedi, Naveen Mishra
Law and Contemporary Problems, Volume 87, Number 2 (2025), pp. 185 - 210
Published online: April 2025
Introduction: A paradigm shift is manifesting in the global crypto ecosystem. Akin to traditional financial systems, crypto markets have developed networks of complex interrelationships between infrastructures, intermediaries and market participants. As an example, the events of the so-called “Crypto Winter” of 2022-2023, which began in early 2022 with the crash of sister tokens USDTerra and Luna and resulted in a series of cascading failures and collapses including that of the major crypto conglomerate FTX, underscore the significant potential that interconnection, interdependencies, concentration and contagion have in the evolving ecosystem. Compared to traditional finance, which is underpinned by a wide range of regulatory and supervisory interventions of central banks and other international and domestic regulatory bodies, the crypto ecosystem has until recently remained largely unregulated. This however is changing rapidly in major economies around the world and is expected to change as well in the United States, as crypto increasingly becomes a regulated industry.
The crypto ecosystem is typically described as and characterized by decentralization and disintermediation. We have seen a range of situations however where the system does not operate in this way......
(click here to view full article)
"Bigtechs and the Emergence of New Systemically Important Financial Institutions: Lessons from the Chinese Experience"
Christine M. Wang, Douglas W. Arner
Emory International Law Review (Vol. 39, Iss. 1 (2024))
Published online: December 2024
"The financialisation of Crypto: Designing an international regulatory consensus"
Douglas Arner, Dirk A Zetzsche, Ross P Buckley, Jamieson M Kirkwood
Computer Law and Security Review, Volume 53
Published online: May 2024
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A Principles-based Approach tothe Governance of BigFintechs
Land-related Restrictive Covenants in Restraint of Trade
Kelvin Hiu Fai Kwok, The University of Hong Kong - Faculty of
Law
National Security Law in Hong Kong: One Year On
Johannes M M Chan, The University of Hong Kong - Faculty of Law
From Datafication to Data State:
Making Sense of China’s Social Credit System and Its Implications
Table of Contents
Doxing and the Challenge to Legal Regulation: When Personal Data Become a Weapon
Anne S. Y. Cheung, The University of Hong Kong - Faculty of Law
The Reformed Individual Income Tax Law in China: A Move Towards Equity?
Jingyi Wang, The Chinese University of Hong Kong (CUHK) -
Faculty of Law
Wilson Chow, The University of Hong Kong - Faculty of Law
Policymakers, BigFintechs and
the United Nations Sustainable Development Goals
Artem Sergeev, The University of Hong Kong - Faculty of Law
Douglas W. Arner, The University of Hong Kong - Faculty of Law
Kuzi Charamba, University of Hong Kong
Kuzi Charamba, University of Hong Kong
Douglas W. Arner, The University of Hong Kong - Faculty of Law
Artem Sergeev, The University of Hong Kong - Faculty of Law
In this AIIFL
News, we highlight a range of publications and activities from the AIIFL team
as well as introducing the new AIIFL website.
Over the past year, the
role of digital communications and interactions has increased dramatically,
including here at AIIFL. We have thus taken the opportunity to refocus our
efforts and digital reach, not only with this new website but with an
increasing range of online events and expansion of our communications channels,
including LinkedIn, Twitter and Facebook.
Taking adventure of
this, I would like to share with you a photo for our first online meeting with
the AIIFL Academic
Advisory Board (AAB) and Professional
Advisory Board (PAB) on 28th June 2021 attended by (from top left to
right): Professor George Walker (AAB), Professor Douglas Arner (AIIFL
Director), Yong Kai Wong (PAB), Kenneth Ng (PAB), Jeffrey Chen (PAB), Stefan
Gannon (Vice Chairman, PAB), Evan Gibson (AIIFL Research), Professor Charles
Booth (Vice Chairman, AAB), Professor Mark Roe (AAB), Professor Mads Andenas
(AAB), Hon Mr Justice William Blair (AAB), Professor Ruth Plato-Shinar (AAB),
Professor Steven Schwarcz (AAB), Professor Ian Ramsay (AAB), Dr Michael Taylor
(AAB), Dr Arthur McInnis (AAB), Martin Lister (PAB), Sou Chiam (PAB), Professor
Benjamin Geva (AAB), Professor Rolf H. Weber (AAB), Professor Sarah Worthington
(AAB), Flora Leung (AIIFL Secretary), Susie Cheung (PAB), Mohan Datwani (PAB),
and Yun Zhao (Board of Management). Professor Richard Cullen
(Board of Management), Professor John Lowry (AAB) and Professor Dan Prentice
(AAB) are not visible but present.
The 2019-2020
academic year was the twentieth anniversary of AIIFL. While we were
unable to hold live events in Hong Kong, we did take the opportunity to take
stock of our performance over the past 20 years, summarised in the 2019-2020
AIIFL Annual Report for AIIFL’s 20th Anniversary. During
that period AIIFL and its Fellows have had impressive output, impact and reach.
My current term as Director of AIIFL will finish at the end of June and I would especially like to take the opportunity to thank you for your continuing support to the Institute and welcome Dr Emily Lee as AIIFL Director from 1 July 2021. I would very much like to thank the entire AIIFL team, particularly Flora Leung (without whom nothing here happens) and Evan Gibson (AIIFL Assistant Research Officer), picture left.
I may be
reached anytime via email (douglas.arner@hku.hk)
or via LinkedIn.
HIGHLIGHTS
New AIIFL Website
The new AIIFL website (www.AIIFL.com) highlights the key
themes and issues driving global finance today: regulation, technology,
sustainability, globalisation, fragmentation.
There are a range of
short videos across the site, with the co-founders of AIIFL as well as the
Convenors of the Research Programmes, sharing the history of the Institute as
well as our strategic research directions. We hope that the new website
is useful and informative.
UN Dialogue on Global Digital Finance Governance
The first set of reports from the UN Dialogue on Global Digital Finance Governance has been launched. A team from AIIFL including Sangita Gazi, Kuzi Charamba, Artem Sergeev and Douglas Arner along with Dirk Zetzsche (University of Luxembourg) and Ross Buckley (UNSW Australia) has worked closely with the Dialogue over the past year, including leading on 3 of the 8 of the reports:
Summary
Paper: BigFintechs and Sustainability: A
Necessary Convergence
Technical
Paper 1.1: BigFintechs and their impacts on
sustainable development
Technical
Paper 1.1B: BigFintechs and their impacts on
macroeconomic policies
Technical
Paper 1.2: Digital currencies and CBDC impacts
on Least Developed Countries
Technical
Paper 2.1: BigFintechs and the UN SDGs: the role of corporate governance
innovations
Technical
Paper 3.1: Policymakers, BigFintechs and the
United Nations SDGs
Technical
Paper 3.2: BigFintechs and international
governance, policymaking and the UN SDGs: the SDGs in the international
governance of finance
Technical Paper 3.3: A principles-based approach to the governance of BigFintech
All
papers are available HERE.
Looking Back Looking Forward: Regulatory Technology After COVID-19
In the episode 4 of Looking Back Looking Forward, Douglas Arner discusses the implications of COVID-19 for RegTech and SupTech: the use of technology for regulatory and supervisory purposes. Non-face-to-face interactions due to lockdowns and other COVID-19 measures have allowed the pursuance of digital reporting and analytics to not only create efficiency but also achieve regulatory and supervisory objectives for financial systems to support sustainable development more broadly.
Watch it HERE
All the episodes of Looking Back Looking forward are available at FinTech Videos Library of the HKU FinTech website.
PUBLICATIONS AND REPORTS
Hong Kong's
Housing Crisis - An Underlying Factor in the 2019 Riots
AWARDS AND IMPACTS
Syren Johnstone appointed as one of the Curators who act as the Managing
Editors of the RegTrax repository. The Curators are recognized experts in their
jurisdictions, and oversee the information that’s being added to ensure
accuracy. They are charged with reviewing the research done by its network of
contributors (as well as any regulations offered from the public), and ensuring
the accuracy of the regulation, source, and conclusions.
LITE Lab students nominated for Financial Times
Innovative Lawyer Collaborative Lawyer Award on Wanted: Role Models for Solving
Legal Problems Together
SELECTED MEDIA
FRT Episode 98: The Platformization of Finance
Interview on
the Future of Legal
Innovation in Asia
Press Release on
Covid-19 Catalysing
the Rapid
Growth of Asia Pacific
Regtech Sector
Central
Bank Digital Currency (CBDC)
Douglas Arnershared his views on
Libra’s challenges to world
currencies
Rethinking Economics NL for Interview-Series on
Economy of 21st Century
Upcoming Events
13 July 2021
30 June 2021
Giuliano G. Castellano presented Secured Lending: Coordinating Law Reforms and Regulatory Policies at the European Central Bank (ECB) on 23 June 2021. The discussion was based on his research recently published on “Commercial Law Intersections” as well as on his contribution to the activities of the International Finance Corporation (IFC) of the World Bank Group.
Douglas Arner presented at the Symposium on Technology and New Finance in the Digital Era on 25 May 2021 Watch it HERE
Douglas Arner presented at Regulation of AI in the
financial sector: crossed perspectives in Asia and Europe on 17 May 2021
Papers and Video are available HERE
Syren Johnstone on Asia Segment on Cryptoassets at the Stanford Law School in April 2021 Watch it HERE
Member of the AIIFL Professional Advisory Board and Partner of Dentons Hong Kong, Jeffrey H. Chen, presented a webinar "Anatomy of Structured Products" on 14 October 2020 Watch it HERE
Brian Tang on behalf of the LITE (Law, Innovation,
Technology and Entrepreneurship) Lab presented at the 2021 Global Law Lab
Showcase & Meetup on 12 May 2021
Brian Tang on LegalTech Innovation
Conference with fellow authors of The LEGALTECH
Book on “Global Business of LegalTech: Founder’s Perspectives” on 13
May 2021 Watch it HERE
Brian Tang served as Judge and Speaker on Hong Kong Startups Meet
MNCs – LegalTech organised by American Chamber
of Commerce in Hong Kong on 6 May 2021
JOIN US
We are seeking
to expand our world leading team in the area of FinTech, RegTech and Digital
Finance.
Post-Doctoral
Fellow in Finance, Technology and Regulation
Applications
close: 31 July 2021, HK Time
More details
and online application are available HERE
Research
Assistant Professor in FinTech / RegTech
Applications
close: 30 June 2021, HK Time
More details
and online application are available HERE
The HKU-Standard Chartered Foundation FinTech Academy, with the aim to cultivate interdisciplinary research in FinTech, has established a Research Assistant Professor Scheme.