The European Commission has proposed a pilot project on the blockchain that may improve its regulation.The draft paper presented the communication
The European Commission has proposed a pilot project on the blockchain that may improve its regulation.
The draft paper presented the communication between the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions.
On page 15, the report stated: “FinTech will bring new opportunities for tackling some of the remaining barriers to integration and opening up national markets further, provided that adequate safeguards are also put in place. However, truly harnessing this potential requires a framework and working methods that are fit for a rapidly changing financial services sector.”
As the report pointed out, regulators` main task should be to ensure that customers are protected and the market is stable. Several EU financial services have already taken steps to be more proactive. They have supported the development of new companies, while learning from them.
Blockchain regulation in the EU
Last year the European Union approved a proposal suggesting the formation of a taskforce whose responsibility is to oversee virtual currencies like bitcoin and the blockchain technology.
Also, the EU Commission introduced the Start-up and Scale-up Initiative aiming to assist innovative entrepreneurs in Europe.
As of August last year, the UK Financial Conduct Authority (FCA) announced its plans to approve a number of blockchain companies to take part in its regulatory sandbox.
“We are talking to firms thinking about how to apply that to financial services and how it could benefit consumers or indeed make the business of compliance easier. There may be areas where we might want to encourage it a bit.”, said Chris Woolard, the FCA’s director of strategy and competition, in an interview with Financial Times.
FCA approved the first 24 companies with the idea of boosting the financial technology industry in the UK.