European Commission targets FinTech global hub status with action plan

FinTech action plan puts forward new rules for crowdfunding and a pan-European label for firms to be licensed across the region.

The European Commission has unveiled a new FinTech action plan targeting technologies such as blockchain, artificial intelligence and cloud services.

The action plan, part of the Commission’s push towards the establishment of the Capital Markets Union, laid out 23 steps to support the uptake of new technologies within the industry and aid businesses in the space to scale up.

A statement issued by the Commission said: “Europe should become a global hub for FinTech, with EU businesses and investors able to make most of the advantages offered by the single market in this fast-moving sector.”

An EU FinTech Laboratory will be established under the plan to help European authorities engage with technology providers in a non-commercial sense.

 The Commission has proposed a pan-European label for platforms allowing firms that are licensed in one country to operate across the region.

Rules around crowdfunding have also been put forward through the action plan, aiming to make it easier for FinTech firms to offer their services in Europe and improve access for businesses seeking funding.

Once adopted by the European Parliament and Council, the proposed rules will allow platforms to apply for an EU label based on a single set of rules.

Valdis Dombrovskis, vice-president for financial stability, financial services and the capital markets union, commented that, Europe’s innovative companies must have access to capital, space to experiment and scale to grow in order to compete globally.

Mariya Gabriel, commissioner for the digital economy and society, added: “Digital technologies have an impact on our whole economy – citizens and businesses alike.

“Technologies like blockchain can be game changers for financial services and beyond. We need to build an enabling framework to let innovation flourish, while managing risks and protecting consumers.”

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