It appears that the EU is now set to crack down on the most insidious of funding methods out there today, from a coercive enterprise perspective. That method of funding is called crowd funding. It enables people to come together from around the world to fund projects that previously would have required networking only with the most wealthy and powerful. Crowd funding allows thousands of small investors to have the same kind of capital power as a small network of wealthy investors.
This type of power cannot be tolerated by the powers that be, and this, as part of the EU’s “Fintech Action Plan,” (that is, it’s “Reign in Direct Democratic, Anonymous and Voluntary Financing Plan”) is a way to stop the small investors from coming together and having the same power as the wealthy, well-heeled, well-vested, well-controllable investors.
|European Commission Unveils Fintech Action Plan & Proposes Crowdfunding Regulation|
The European Commission recently revealed its Fintech Action Plan (“Action Plan”) which outlines the ways in which it intends to go about regulating these technologies. The Action Plan attempts to tackle the regulation of various nascent technologies, including blockchain, cloud computing and the internet of things.
The financial industry is one of the largest users of disruptive technologies and the European Commission has recognised the importance of encouraging the industry to utilise these technologies, albeit not at the detriment of investors and/or consumers. The Action Plan sets out 23 steps to encourage businesses to utilise and experiment with these technologies including the setting up of an EU FinTech Laboratory, publishing a comprehensive strategy on distributed ledger technologies like blockchain and organising workshops with the aim of improving education surrounding cybersecurity.
As part of the Action Plan, the European Commission also released its proposed regulation for crowdfunding service providers. This proposal aims to harmonise Member States’ domestic laws in this area as the European Commission has noted that current national laws are incredibly divergent in this respect.