With the exit of UK next year, EU is trying to attract the fintech industry. Currently, London is the financial capital of the world. However, once it is separated from EU, it is expected that many companies will be looking for an alternative place for setting up the headquarters. This is the reason why EU planning on attracting the industry.
EU is drafting a law in this respect. It will allow the fintech industry to raise money with the help of crowdfunding. Moreover, standard blockchain protocols will also be implemented. This will ensure that the companies are able to use the blockchain technology much more easily.
According to the draft law, the EU framework which will be created will not only offer a European passport but will also ensure that various technological platforms can be easily used by the companies. Also, investors will be able to invest quite easily in these companies.
Currently, many of the companies are faced with the cyber security threats as well as hacking threats. With the help of uniform regulatory approaches, the amount of security will increase significantly. The common standards for blockchain will ensure that the platform will be easily used across the entire European Union. With the help of such open standards, there will be no confusion at all when it comes to using the technological solutions. Also, across the entire market, the same standards can be used which ensures that EU can be considered as a single market by the fintech firms.
Fintech companies have a large presence in the United Kingdom. However, it is expected that there will be at least some companies which will migrate to EU once United Kingdom leaves the European Union. The contribution of Fintech sector to its respective countries has been increasing all over the world. The sector is valued at $ 102 billion in China. On the other hand, in EU it is valued at $ 36 billion. As a result, the sector is growing at a rapid pace and forms a significant portion of the economy in most of the countries. This is the reason why the EU commission is trying to attract the sector in order to not only generate employment but also to ensure that innovation is made possible in this sector.
If the law is indeed drafted, it will certainly attract many of the companies all over the world as the uniform infrastructure will be a huge positive for the companies. With the help of this uniform infrastructure, companies will be able to innovate quicker.