In its annual work program, the European Securities and Market Authority said it would analyze the regimes of national competent authorities of fintech firms across the EU to identify potential gaps and issues in the current regulatory framework and assess how the principles of proportionality and flexibility are applied by member states.
Depending on the findings of the survey, ESMA will determine whether there are areas of fintech regulation that the European Commission needs to address and whether there are substantial divergences among national regulations of fintechs where convergence is needed.
The regulator will also identify products or processes where financial technology can improve financial inclusion.
In addition, ESMA will examine ways to foster more convergence across innovation hubs in the EU and facilitate experience sharing and cooperation. Following the publication of the Report on Regulatory Sandboxes and Innovation Hubs in January 2019, ESMA will continue to engage in enhancing cross-border coordination and cooperation between innovation facilitators.
On regtech and suptech, the regulator said it would continue to monitor and analyze how the emergence of regulatory technology and its use may improve regulators’ ability to gather, process and analyze regulatory reporting data. ESMA will also analyze any risks that may emerge from the use of such technology.
Following publication of the advice on ICOs and crypto assets to EU institutions in January 2019, ESMA will continue actively monitoring market developments, as well as work with NCAs to provide a forum to share experience and views on the challenges/issues faced by NCAs when regulating/supervising crypto-assets and related activities. It will share results with NCAs through FISC (Financial Innovation Standing Committee). Depending on market developments, ESMA will determine whether further actions are needed to support supervisory convergence.