European Union to Propose New Standards for Blockchain Technology

The European Union is set to propose new common standards for blockchain technology in an effort to create more clarity and encourage fintech innovation, according to a Reuters report.

The planned draft law, which will also address crowdfunding, may come as soon as this week, stated the news organization after reportedly seeing the underlying document.

“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,” states the draft document.

The EU executive reportedly sees a greater need for standardization, rather than piecemeal legislation in different countries, to draw more blockchain and other fintech firms to the continent as the United Kingdom moves closer to leaving the union. It wants to attract more investment in companies that will help define the future of financial services, including through crowdfunding sources that may be able to help finance startups.

“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,” stated the document.

The EU executive will also look to establish guidelines for establishing innovation hubs and “review existing financial rules to see if they are suitable for cryptocurrencies and initial coin offerings,” stated Reuters.

(Image credit: TheDigitalArtist / Pixabay)

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