Fintech leaders warn of tougher rules for digital assets

Fintech executives are using World FinTech Day to warn that regulation is entering a more demanding phase for both digital assets and corporate finance functions. Senior figures from PayDo, Dost and Clarity Global say firms face tighter expectations around governance, data quality and regulatory storytelling.

European crypto firms are still working through the impact of the Markets in Crypto-Assets (MiCA) regulation. The framework requires digital asset providers to meet standards closer to those of traditional financial institutions than technology start-ups.

PayDo, a regulated payment infrastructure provider, sees the current wave of authorisation challenges as a structural shift. Serhii Zakharov, Chief Executive Officer and Founder of PayDo, says many crypto businesses underestimated the level of preparation MiCA requires.

"From our perspective as a regulated payment infrastructure provider, the figures are not especially surprising. MiCA asks firms to demonstrate that they can operate as regulated financial businesses, not simply that they have developed an innovative product. Building that level of readiness takes time. It means putting governance, risk management, financial controls and operational capabilities in place long before an application is submitted. The firms that invested early in those foundations are naturally further ahead today. That is an encouraging sign for the market because it shifts competition towards long-term resilience rather than speed alone," said Serhii Zakharov, Chief Executive Officer and Founder of PayDo.

Zakharov argues that the headline number of authorised firms does not capture MiCA's broader impact on the European market. He links regulatory certainty to investment decisions and cross-border expansion.

"The number of authorised firms is only one measure of progress. The more important question is whether MiCA delivers the consistency businesses need to plan and grow across Europe. For any regulated financial business, certainty is an economic advantage. When firms understand the rules and can rely on consistent supervision, they are more willing to invest, expand into new markets and develop new services. If MiCA provides that level of predictability across the single market, its impact will extend well beyond compliance. It becomes a framework that supports sustainable growth for the entire ecosystem," said Zakharov.

He also links crypto regulation to the maturity of the surrounding financial infrastructure, including fiat settlement, liquidity management and anti-money laundering functions.

"The key takeaway from MiCA is that regulatory clarity provides the foundation for market development, but the broader ecosystem also needs to support businesses as they scale. Digital asset firms are closely tied to the traditional financial system. To serve clients effectively, they rely on fiat settlement, liquidity management, AML controls, treasury processes and payment infrastructure. Success therefore hinges not just on regulation, but on establishing the operational capabilities needed for digital assets and traditional finance to work together seamlessly. For jurisdictions developing their own frameworks, the objective should be to combine clear standards with practical pathways for compliant firms to operate across both digital assets and conventional financial services. When regulation is matched by strong financial infrastructure, businesses gain the confidence to innovate, expand across borders and deliver more reliable services to clients," said Zakharov.

On the client side, Zakharov expects MiCA to sharpen scrutiny of providers' operational set-up and transparency standards.

"For clients, both retail and business, one of the primary benefits of MiCA is greater transparency. An integrated regulatory regime helps identify providers that meet established standards in governance, operational resilience and client protection, building confidence across the sector. At the same time, authorisation should be seen as the start of trust, not the end of the conversation. Clients should continue to understand how their provider manages funds, what protections apply, how transactions are processed and what happens if an issue arises. In financial services, long-term confidence comes from a combination of clear regulation and consistent execution. Organisations that build resilient infrastructure, transparent processes and a reliable client experience will be best positioned to earn that trust as the market matures," said Zakharov.

E-invoicing pressure

Regulatory deadlines are also reshaping priorities inside UK finance departments. The government plans to introduce a mandatory e-invoicing regime that will phase out PDF invoices between domestic businesses.

Adam Barbera, Chief Executive Officer and Co-Founder of Dost, says many teams still rely on manual processing despite a growing compliance burden.

"World FinTech Day is a good moment for an honest check-in on how ready UK finance departments are for tech regulation, particularly e-invoicing. Most finance teams are still manually keying supplier invoice data, and UK firms logged £109 billion in overdue invoices ( https://notltd.co.uk/news/uk-companies-late-invoice-payments-2025/ ) last year. That is the context in which the UK's mandatory e-invoicing regime will arrive in April 2029, when businesses will no longer be able to invoice each other with PDFs. Every VAT invoice will have to be sent as structured, machine-readable data flowing directly between accounting systems. It is easy to see this mandate as a simple technical requirement. In reality, governments are pursuing e-invoicing to combat fraud and improve control over commercial transactions, which puts finance leaders directly on the hook for compliance. Adopting e-invoicing is like facing any new challenge: it feels overwhelming at first, but the long-term benefits are substantial. There will be fewer errors, more control and more time to focus on strategic work. If UK companies treat this as a box-ticking exercise in 2028, they will get exactly that: cost and disruption. If they start early, they will end up with cleaner data, fewer errors and a finance function ready for what comes next, on top of being compliant," said Adam Barbera, Chief Executive Officer and Co-Founder of Dost.

Funding turns selective

On the capital side, venture flows into fintech are recovering, but with sharper filters. Investors are backing a smaller group of firms that can show credible governance and deep integration with incumbent financial institutions.

Chloe Parker, Partner at Clarity Global, sees this shift as a break from the expansion-at-all-costs era. She says the UK remains central to the global fintech story despite lower overall funding volumes.

"Fintech's mood has clearly shifted in recent years from 'winter' survival talk to something more grown-up. Investment is climbing again, exits are reopening, and investors are putting serious money behind a narrower set of winners rather than spreading bets thin. The UK tells a striking version of that story: overall investment dipped this year, yet Britain still pulled in more than a third of all EMEA fintech funding, more than France, Germany, the Nordics, Ireland, China and Brazil combined. London has not lost its crown; it has just stopped being a soft landing. Capital is back, but it rewards mature growth stories, credibility in regulated markets and real integration into the financial system. That is exactly the conversation we are having every day with fintech clients at Clarity: how you tell that story is no longer a nice-to-have, but a competitive lever for winning the next wave of capital," said Chloe Parker, Partner at Clarity Global.