Legal Applications and Effects of Financial Technology (FinTech) in the Financial Sector
Keywords:
Financial Technology (FinTech), Cryptocurrencies, Smart Contracts, Law of Money and BankingAbstract
The primary objective of this study is to identify and analyze the principal applications of FinTech in monetary and financial markets—such as cryptocurrencies, crowdfunding, and open banking—and subsequently to conduct a comparative examination of the effects of these applications on the fundamental principles of the Iranian legal system, including rules governing the nature of money, the validity of contracts, and the jurisdiction of supervisory institutions. The present study was conducted based on a descriptive-analytical approach using a library research method grounded in laws, regulations, Central Bank practices, and contemporary jurisprudential and legal literature. The findings of the study demonstrated that: (a) the absence of a clear legal definition for certain FinTech instruments, particularly tokens, has resulted in ambiguity in the application of securities and anti-money laundering laws; (b) smart contracts, in the absence of an adequate legal framework, face limitations in the full implementation of legal principles such as the possibility of rescission or interpretation under conditions of ambiguity; and (c) Iranian regulatory institutions require the rapid formulation of regulations that simultaneously support innovation while safeguarding public interests and financial stability. The final conclusion of the study proposes a framework for revising existing laws or enacting new legislation aimed at the responsible integration of FinTech into the country’s financial and legal ecosystem, so that the economic opportunities of this technology may be utilized while its legal and regulatory risks are minimized.
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