The European Commission has unveiled a 23-step action plan on harnessing opportunities created by FinTech.
This action plan sets-out 23-steps to enable businesses to scale up, support new technology implementations, increase cybersecurity and the financial system integrity.
An EU FinTech Laboratory will be hosted by the commission where European and national authorities can engage with technology providers. It’s EU Blockchain Observatory and Forum will report on challenges and opportunities of crypto assets and the commission will also hold workshops to improve information-sharing for cybersecurity.
Other key areas for the plan include consultation for publishing information by listed companies in Europe, and a blueprint for best practices on regulatory sandboxes.
The commission believes Europe should be a global FinTech hub with EU businesses and investors able to use the single market to its advantage. To support this, it has launched new rules for the space and crowdfunding. This new plan hopes to support the rapid advancement of technology like blockchain, AI and cloud services but also make the market safe and secure.
Consumers, investors, banks and startups are set to benefit from the changes, with the commission also proposing a pan-European label for platforms which means a platform licensed in one country can operate across the EU.
The crowdfunding proposal and a pan-European license will support the sector by opening up FinTechs to investors and consumers across the EU. Investors will also be protected by clear rules on information disclosures, governance, risk management and supervision.
Financial Stability, Financial Services and Capital Markets Union vice president Valdis Dombrovskis said, “To compete globally, Europe’s innovative companies need access to capital, space to experiment and scale to grow. This is the premise for our FinTech Action Plan.
“An EU crowdfunding licence would help crowdfunding platforms scale up in Europe. It will help them match investors and companies from all over the EU, giving more opportunities for firms and entrepreneurs to pitch their ideas to a wider base of funders.”
This action plan comes as the commission aims to build a capital markets union and a single market for consumer financial services.
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