Regulatory Lag, Regulatory Friction and Regulatory Transition as FinTech Disenablers: Calibrating an EU Response to the Regulatory Sandbox Phenomenon

Abstract With transformative evolution involving crypto-assets, machine learning applications and data-driven finance models, complex regulatory policy issues are emerging. Inadequate frameworks in FinTech markets create friction fragmentation. These limitations continue to feature when piecemeal transition occurs. The danger of EU Member States being left behind the innovation race if landscape is cumbersome or incomplete for new business models real. Regulatory lag also act as a ‘disenabler’ ease cross-border trade EU. This article critically engages with manner which sandbox has rapidly gained critical mass valuable adaptive measure supporting route market entrepreneurs. Against backdrop European Commission’s Digital Finance Strategy, further advances scholarship on by probing EU’s resulting dilemma, undertaking systematic evaluation continuum options available Union response spreading phenomenon.