The European Commission considers the introduction of EU passporting and lower regulatory rules for financial technology companies, as Reuters (reuter
The European Commission considers the introduction of EU passporting and lower regulatory rules for financial technology companies, as Reuters (reuters.com) wrote recently.
This move may undercut London`s leading position in FinTech as Britain is leaving the EU, commented the publication.
“We need to be cautious in our approach, ensuring that this new industry has a space to grow.”, said the EU executive`s vice president Valdis Dombrovskis as quoted by Reuters.
Financial technology firms use modern technology to compete with traditional financial services providers like banks.
Dombrovskis has reportedly added that the European Commission is exploring new regulations that can provide fintech businesses with passporting rights. Thus, they can more easily “expand across borders and operate anywhere within the EU`s single market.”, as cryptocoinnews.com noted.
Threatening London`s lead
London`s position as a financial technology hub may be threatened by such decision. Some continental rivals like Berlin and Dublin can find themselves in a more favorable position, added the online media.
Short after the Brexit vote, France`s market regulator announced that major banks in London were in the advanced stages of moving their services to Paris.
As the BBC noted, there are about eight financial centres across Europe that are trying to attract businesses that are based in London. These are Paris, Frankfurt, Dublin, Luxembourg, Amsterdam, Madrid, Bratislava and the Maltese capital, Valletta.
However, a recent report by Deloitte and All Street Research showed that London still ranks number one out of 21 leading FinTech hubs.
It remains to be seen whether the city of London can keep its leading position as a financial technology hub.