The Financial Markets Authority – AMF wants to encourage Europe to adopt an innovative digital strategy applied to financial services.
After sketching out in June 2019 the areas of work it considered to be priorities for the new European mandate, the AMF wants to be a force for more detailed proposals for an innovation-friendly Europe.
To feed the European debate, it publishes a first working paper of its services. In the run-up to the new European mandate (2019-2024), the AMF published in June 2019 a position paper for the European institutions entitled “EU2024: Shaping capital markets to 27 to meet the challenges of tomorrow – work axes and first proposals from the Financial Markets Authority.” Among many topics, the paper recommended the development of a European digital strategy for financial services.
In this discussion paper, the AMF services wanted to clarify this ambition and flesh it out with more concrete and granular proposals on technical aspects of European regulation.
The AMF wants to encourage the European Commission to develop a European digital strategy applied to financial services that would enable European players to innovate in a secure environment. Such a strategy could be based on the following:
- allow the issuance and exchange of financial instruments on blockchain (“tokenization”) by removing existing legal barriers and creating a stable value asset allowing interbank stable settlement corner;
- develop a European framework for digital assets outside the definition of financial instruments;
- encourage the experimentation of new projects to foster innovation;
- manage the risks identified in the relationship between cloud providers and financial institutions to take full advantage of the use of artificial intelligence in the financial sector.
“Tokenization of finance is a major trend, which should not be combated but rather supported by a framework that allows it to develop in a secure environment”
The AMF services will exchange with their counterparts on the basis of this project and will publish in the coming weeks a more complete version, in the form of a position paper.