ESMA published its response to the EC consultation paper titled “Fintech: a more competitive and innovative financial sector,” welcoming the initiative to take a stock of the fintech industry in the EU. In its response, ESMA offers its views on some of the issues raised in the areas of artificial intelligence and big data analytics for automated advice and businesses, crowdfunding, RegTech, outsourcing and cloud computing, distributed ledger technology, role of regulation and supervisors, and role of industry in promoting data standardization and harmonization.
Overall, ESMA sees fintech as a positive evolution as long as business models aim to improve financial consumer experiences and facilitate financial inclusion. Response of ESMA also includes a survey on regulated investment-based crowdfunding platforms in the European economic area, providing an overview of the current activities and trends. ESMA reiterates its call for a specific crowdfunding EU-level regime, which would ensure that investors across the EU are equally protected and would enable crowdfunding platforms to operate cross-border, based on a common regulatory framework.
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