Global regulation of alternative finance – including peer-to-peer lending, equity crowdfunding, and initial coin offerings (ICO) – will increase substantially over the next two years, according to a new report from the World Bank and the Cambridge Centre for Alternative Finance, Peer2Peer Finance News writes in an piece.
By mid-2021, 68% of the 111 regulatory jurisdictions surveyed will be regulating equity crowdfunding – up from 39% (in 2019). Meanwhile, 43% will regulate P2P lending (22%) – and 37% will regulate ICOs (22%).
In all countries, policymakers are keen to explore the promise of alternative finance – the potential to improve business and consumers’ access to finance and stimulate competition in financial services. However, regulators in many countries have learned from other jurisdictions and intend to also sharpen domestic regulation. But, 77% of global regulators said that they would like to receive more support from development banks, other regulatory bodies, and associations of financial regulations, especially in emerging markets.