With the rise of technology, the Fintech market is growing every day. But as financial regulation is become more and more complex, requiring major financial institutions to comply with different regulations throughout various jurisdictions, major challenges arise. There are several legal issues that Fintech companies can face and to properly navigate and resolve them, Fintech law firms in Lithuania can become quite useful.
Cybersecurity & data protection
These type of companies collect & process large amounts of information, that’s why they can quickly customize their service to suit the demands of market trends. Because they deal with data, they must ensure that everything they do with it acts in compliance with data protection laws and GDPR. Drafting appropriate procedures and documents can be tricky though, so help from a lawyer that specializes in this field is very beneficial.
Distributed Ledger Technology & smart contracts
DLT is the amount of shared & synchronized digital information that is spread across multiple websites, institutions. It also has no central administration or centralized data storage. An example of this is the blockchain system. Help from Fintech law firms in Lithuania is usually needed because these operate in various jurisdictions with conflicting regulations. And the use of the blockchains themselves cause some data protection concerns.
Outsourcing core banking/payment system to the public cloud
Contracts negotiated between financial institutions and outsourcers must comply with certain legal requirements. That’s why and adequate contract management process supervised by a lawyer becomes important. If service providers failure to ensure the necessary amount of transparency, it can result in material, legal and security risks with complex implications.
These are not the only legal issues Fintech companies face and require assistance from Fintech law firms in Lithuania. More advanced ones also have to deal with possible problems with biometric authentication using fingerprint recognition, robo-advisors, and much more. What’ is important is to reach out to a proper lawyer that can help you deal with these things.