European Union Released a New Blockchain- Based FinTech Action Plan

The European Union continues to look after solutions for the future use of the digital technology such as the blockchain. On Thursday, a FinTech Action Plan was submitted, being entitled “For a more competitive and innovative European financial sector”.

EU plans to launch a Fintech Lab

According to the FinTech Action Plan, the European Commission works to design a new Fintech Lab this year.

The new project will be developed with the help of participants from EU authorities, as well as technology providers based in Europe. They plan to lead to another level the “regulatory and supervisory capacity and knowledge” about digital technology, including blockchain.

“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.“, stated Mariya Gabriel, Commissioner for the Digital Economy and Society.

The Action Plan also refers to possible projects aimed at developing and implementing legal solutions to carry out activities related to Smart Contracts and ICO.

Technological innovation presents risks

The document states about the advanced technology that “Technological innovation has led to new types of financial assets such as crypto-assets. Such crypto-assets and the underlying blockchain technology hold promise for financial markets and infrastructures. Their use also presents risks, as has been witnessed by strong volatility of crypto-assets, fraud and operational weaknesses and vulnerabilities at crypto-asset exchanges. At EU level, action has already been taken to address some specific risks”

About FinTech Action Plan

The financial domain is “the largest user of digital technologies” and an important generator of technological innovations. According to the official Press Release, posted on 8 March 2018 on the European Commission‘s website, 23 steps have been established and specified to support the development of business technologies, enhancing information security and the integrity of the financial sector.

Thus, the FinTech Action Plan includes the following measures:

• “The Commission will host an EU FinTech Laboratory;
• The EU Blockchain Observatory and Forum is working on finding strategy on distributed ledger technology and blockchain addressing all sectors of the economy;
• The Commission will consult on how best to promote the digitization of information published by listed companies in Europe;
• The Commission will run workshops to improve information-sharing when it comes to cybersecurity;
• The Commission will present a blueprint with best practices on regulatory sandboxes, based on guidance from European Supervisory Authorities.”

The European Union has already been able to review its Payment Services Directive by asking regional banks to implement communication channels in order to integrate blockchain applications.