The aim of this thesis is to examine the process through which Fintech has become an important part of the financial sector, the innovations and simplifications it provides, and to consider the regulatory frameworks that Fintech must comply with, which necessarily need to change compared to traditional regulatory approaches – they must innovate in order to protect users of new services as well as the overall financial system. The historical development of technology and its impact on society and the economy are described. The development of the financial system and globalization have enabled global connectivity while financial innovations and financial technologies (Fintech) have significantly changed financial systems worldwide. Increasing digitization has led to the development of new payment systems, payment instruments, and potential risks. Financial technologies such as digital wallets, digital payments through lower operating costs, innovation, and access to technologies create competition for traditional banking systems. Regulatory bodies, through existing regulations such as the Second Payment Services Directive of the European Union (PSD2), the Second Markets in Financial Instruments Directive (MiFID II), the General Data Protection Regulation (GDPR), Anti-Money Laundering Directive (AML), and the Electronic Money Directive (EMD), seek to regulate the operations of Fintech companies. These regulations do not directly apply to Fintech companies, but they must comply with them in order to conduct business. In addition to the aforementioned directives, the supervision of Fintech operations is carried out with the assistance of regulatory technology (Regtech) and supervisory technology (Suptech). These solutions involve the use of technology to improve regulatory compliance management and the supervision of financial institutions through the use of artificial intelligence. The Fintech sector continues to experience growth and development, so it is necessary to develop regulatory frameworks to monitor its operations without limiting innovation and development.