The new rules are coming: banks and hi-tech companies will have to compete with the same rules.
The European Commission has adopted a package of measures to regulate the Fintech market but also a squeeze on the Crypto Currencies that must be authorized.
Fintech is nothing more than the acronym of Financial Technology, i.e. operations in the financial sector through digital tools, usually algorithms, which offer a series of services related to the so-called dematerialization of money and interpersonal relationships, today that pandemic requires greater limitation of contacts and physical exchanges, Fintech seems the best solution to deal this new economic senario.
In fact, from March 2020 onwards, returning from lockdowns and restrictions in every country in the world, we have all become more digital, even in my country, Italy, where it has always been preferred to use cash for purchases, there has been an increase in contactless payments and even an increase in purchases on e-commerce sites.
Many see this new regulation negatively, but the European Commission's goal is to make European financial services more digital-friendly, but also to create a level-playing field between competitors, traditional banks or technology companies will have to compete by the same rules.
The ultimate goal is to increase the competitiveness and innovation of the financial sector in Europe by guaranteeing security for consumers but also financial stability for the Member States.
But it does not end there, the European Commission for the first time introduces a regulation on cryptocurrencies, giving the possibility to authorized operators in an EU state to provide their services throughout the European Union according to certain safeguards for investors; not forgetting the important role assumed today by cloud infrastructures and financial services offered by Big Tech, however, providing greater supervision of technology suppliers who will have to guarantee the necessary safeguards to limit cyber attacks and other risks.
The regulation of cryptocurrencies is not intended to put a stop to decentralized markets, but is an attempt to include this new sector in the European Economic Circuit through clear and certain rules that aim to protect investors from risks, the only purpose of the European Commission is to preserve financial stability but also to stimulate innovation in this sector in continuous turmoil.
We will see in the coming months what effects the new regulation will have had on the crypto currency markets and if it will have achieved the set objectives rather than damaging the entire sector.
What is certain is that once the rules are introduced there is no turning back, but eventually it will be possible to intervene to improve them.
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