The European Securities and Markets Authority (ESMA) said on Friday 12 July that most new innovative companies using financial technology (FinTech) could operate within the current framework of EU rules, thus excluding, for the time being, the need for new rules.
This is the main conclusion of its report, which identifies current approaches of licencing regimes for innovative 'FinTech' business models in Europe, as requested by the European Commission in its action plan on 'FinTech' (see EUROPE 11977/3).
ESMA's surveys of National Competent Authorities confirmed that the latter generally do not distinguish between 'FinTech' firms and traditional business models in their authorisation and licensing activities since they authorise a financial activity and not a technology, the report points out.
Overall, ESMA concludes that most innovative business models can currently operate within the framework of existing European rules and therefore does not make any further recommendations at this stage for possible changes to European regulation.
On the other hand, the report confirms the conclusions of an earlier Authority report which concluded that, in general, crypto-assets are outside the scope of European banking, payment and electronic money legislation (see EUROPE 12168/9).
"The primary area where regulatory gaps and issues have been identified by NCAs and where FinTech firms do not fit neatly within the existing rules is related to crypto- assets", it states.
The national authorities themselves are calling for greater clarity at EU level regarding the definition of financial instruments and the legal nature of crypto-assets, the report points out. (Original version in French by Marion Fontana)