What regulations do fintech companies have to follow?

Fintech companies face varying regulations depending on their location and services. In the US, they typically need licensing from state financial regulators and must comply with anti-money laundering (AML) and Know Your Customer (KYC) laws. Companies handling customer funds require money transmitter licenses. The EU enforces stricter rules through the Markets in Financial Instruments Directive (MiFID II) and Payment Services Directive (PSD2). Crypto-focused fintechs face additional scrutiny regarding digital asset custody and trading. Regulations continue evolving globally, with countries like Singapore and Switzerland offering clearer frameworks. Compliance costs can be significant, but necessary to protect consumers and prevent financial crime.