The purpose of the license is to make the EU more competitive with the U.S. and Asia in the fintech sector by making it easier for fintech outfits to set up in one EU member state and operate in any country throughout the EU. The license plans also want to spur competition with traditional banks. Moreover, the plans come under the Capital Markets Union, a mechanism that seeks to reduce nation-level administrative rules and regulations that hamper cross-border investment. In early 2018, the EU is expected to present draft legislation that will tear down administrative barriers regarding the operation of crowdfunding sites and online P2P lending services across the different member states towards the ends of fostering growth and competition. The license plans could eventually be extended to other parts of the fintech industry. Supporting the idea of removing borders towards the end of competition, Valdis Dombrovskis, EU Commission vice president responsible for financial services, remarked: “Europe is certainly well-placed for new fintechs emerging, both in terms of the necessary skills, financing, and innovation, availability of capital. . .Everything is there for Europe to be a great place to start fintechs. . . [But] too many barriers [prevent companies from growing] . . . We still don’t have this digital single market . . . and that’s why we see many European fintechs then going to the U.S. or Asia to scale up.” Currently, EU members states generally have proprietary regulatory frameworks in place that do not consider the EU’s needs at the continental level. As London is considered the focal point for European fintech, this EU move combined with Brexit could jeopardise London’s place as a global and European fintech hub, shifting influence to the continent.]]>