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EU 'may create blockchain standards' to support fintech

European officials are drafting new laws to encourage fintech investment post-Brexit - report

blockchain

European officials are reportedly drafting new laws to develop blockchain technology standards for the European fintech sector.

The plans, which are expected to be published this week, are aimed at encouraging international fintech companies to launch operations in European countries in mitigation of any negative effect that Brexit could have on the EU's financial services market.

Lawmakers essentially want to coax fintech organisations to expand in other European cities than London, currently Europe's financial services hub.

Under the proposals, reported today by Reuters, the EU could develop a licensing system to support new crowdfunding platforms - making it easier for large companies and established investors to plough cash into startups.

The proposals will also encourage regulators to work with investors and companies to support the growth of the industry, rather than curbing lucrative opportunities. Collaborative topics include cyber security threats and funding issues.

A draft version of the document,, seen by Reuters, reads: "An EU framework would offer a European passport, and, at the same time, ensure the proper management of platforms and the protection of fund providers."

As well as boosting funding opportunities for fintech firms, the EU will also develop "common standards" to help companies get the most out of blockchain technology, the public record of transactions underpinning cryptocurrencies like Bitcoin.

"An EU-wide fintech market will not reach its full potential without the development of open standards that make interoperability possible, simplify the exchange of data between market players and facilitate competition," explains the document.

The news comes as the EU considers a clampdown on cryptocurrencies. Last week, EU financial services boss Valdis Dombrovskis confirmed that the bloc could implement new regulations to keep Bitcoin and other digital currencies in check.

He told the Guardian: "This is a global phenomenon and it's important there is an international follow-up at the global level.

"We do not exclude the possibility to move ahead by regulating cryptocurrencies at the EU level if we see, for example, risks emerging but no clear international response emerging."

Picture: Bigstock

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