EU to Develop Fintech Measures Draft Law

The EU's executive will propose a draft law on crowdfunding and common blockchain technology standards to help a European financial technology sector flourish
06 March 2018   361

The European Commission, the executive body of the European Union, intends to develop uniform standards for companies working in the field of blockchain. This is reported by Reuters. It is expected that the Commission can announce its plans as early as this week.

According to the information, European legislators intend to develop uniform rules of crowdfinding for all EU countries, which will solve the problem of selective and heterogeneous regulation applied in some countries of the block.

An EU framework would offer a European passport, and, at the same time, ensure the proper management of platforms and the protection of fund providers. An EU-wide fintech market will not reach its full potential without the development of open standards that make interoperability possible, simplify the exchange of data between market players and facilitate competition.

Document, seen by Reuters

Among other things, the proposal envisages the introduction of licensing for crowdfunding platforms at the pan-European level.

The Commission also intends to conduct an analysis of the rules in force in the EU to determine whether any of them are suitable for the regulation of the Crypto-Currency and ICO. It is expected that various regulators and representatives of the industry will be involved in the process of forming a single regulatory framework.

Among other things, they will discuss the issue of the stability of fintech companies by hacker attacks, as well as analyze the costs and benefits of "testing cyberthreats" for leading players in the market that form the financial infrastructure of the EU.

Until the fourth quarter of this year, the Commission expects to submit a plan of regulatory "sandboxes", which will allow fintech companies to test their products on real customers. To date, these sites operate only in 13 of the 28 EU member states.

Japan to Tighten Regulation Due to Zaif Hack

$ 62 000 000 worth cryptocurrency was stolen from the Zaif exchange few weeks ago
25 September 2018   83

Hacking of Zaif exchange is the reason for toughening control over the market by the financial regulator of Japan, Reuters reports.

The first measure taken was administrative sanctions against the exchange and its operator Tech Bureau Corp. The Financial Services Agency (FSA) has expanded the list of requirements for the latter, pointing out the need to identify preventive measures and search for the organizers of the theft.

Shortly before that, researchers of the Japanese financial company Tech Bureau Corp could not provide details of the theft of $ 62 million from the Zaif crypto exchange at the request of the FSA. The Osaka-based operator had to investigate the causes, consequences of the theft and options for compensating the victims. According to the Agency, the financial company could not cope with the task.

According to the Tech Bureau, the exchange was hacked on September 14 within a few hours. The problem with the server was discovered by the site staff on 17 September. Official confirmation of the incident and notification of the authorities was made only a day later.

Recall, the theft of $ 60 million from the Japanese stock exchange Zaif caused a surge of volatility of bitcoin. For a short time the price was able to overcome the distance of $ 400.