FinTech plays an increasingly important role in the financial industry by providing innovative solutions that are disturbing the status quo in the traditional banking sector. Rapid development of big data analyses and secure mobile applications are changing clients’ behavior and increase their expectations of fast, economic and user-friendly services. While technology is enabling new products and processes, regulators are catching up with their core obligations to secure stability in the financial sector. Qualitative research of FinTech regulatory environment in Singapore documents key regulations, their drivers, results of their implementations and main beneficiaries. The study among FinTech senior executives concludes that drive towards innovation utilizes number of tools across sectors promoting digitalization and innovation, with regulatory environment being one of them. Regulations applied in the coordinated economy with high share of state-owned companies are not exposed to lobbying at intensity characteristic to open markets. Therefore, Stigler’s Theory of Regulations is not applicable in economies like Singapore. Schumpeter’s Theory of Innovation and Christensen’s Theory of Disruptive Innovation confirm their validity even with high pace changing technologies such as FinTech. Although, the macroeconomic environment of coordinated economy with high share of state-owned companies tend to support entities of certain and controllable size of operations. As a result, the basis of Theory of Coordinated Disruptive Innovation is formulated leveraging on classical theories as well as results of the research conducted in Singapore FinTech regulatory environment.