An EU fintech plan and a crowdfunding certification are on the way

A pan-European crowdfunding label, so that a platform authorized in one country can operate throughout the European Union. This is the proposal of the European Commission, contained within a package of solutions that aims to turn Europe into a hub for fintech, with EU companies and investors able to exploit most of the advantages offered by the single market in a rapidly evolving sector.  “To compete globally – said  Valdis Dombrovskis, Vice President responsible for Financial Stability, Financial Services and Capital Markets Union – Innovative European companies must have access to capital, have space to innovate and benefit from an expansion of scale to grow. This is the premise for our fintech action plan. An EU license for crowdfunding – he explained – would help crowdfunding platforms expand in Europe and connect investors and businesses across the EU, giving businesses and entrepreneurs more opportunities to bring their ideas to a wider audience vast potential investors “.

EU mark

The European Commission’s proposal on crowdfunding platforms will allow them to offer their services more easily across the EU and improve access to this innovative form of business financing. Once adopted by the European Parliament and the Council, the proposed regulation will allow platforms to apply for an EU label on the basis of a single set of rules and to offer their services across the Union. Investors on crowdfunding platforms will be protected by disclosure, governance and risk management regulations and a consistent supervisory approach.

The fintech action plan

In addition to initiatives related to crowdfunding platforms, the European Commission’s action plan includes 23 initiatives to enable innovative business models to expand, promote the dissemination of new technologies and strengthen cybersecurity and the integrity of the financial system. The Commission will host an  EU laboratory on financial technologie, thanks to which European and national authorities will be able to collaborate with technology providers, in a neutral way and in a non-commercial space. The Commission itself will report on the challenges and opportunities of cryptocurrencies in the course of 2018 and is working on a  global strategy on distributed register technology and blockchain for all sectors of the economy. Consultations will be held on how best to promote the digitization of information published by listed companies in Europe, including through the use of  innovative technologies to achieve the interconnection of national databases. And also seminars to improve the exchange of information on cybersecurity.