News Briefing - Crowdfunding, SME And Alternative Finance

crowd in nightclub, seen from a DJ point of view

1.UK – FinTech

Can big Internet companies be trusted to deliver financial innovation? City AM carries a report that suggests The FCA is worried about their approach to risk assessment..

The UK finance regulator has warned Facebook to reject the mantra “move fast and break things” in relation to its libra cryptocurrency project, saying tech giants must “get it right the first time round”.

Christopher Woolard, the executive director of strategy and competition at the Financial Conduct Authority, said regulators are facing issues that “could have a fundamental effect on the financial services system”.

Woolard’s comments come after Facebook launched its libra project last month. Regulators around the world have since ramped up calls for increased scrutiny on new digital currencies and financial disruption.”

2. UK - P2P

Funding Circle has more bad news for the market. Its shares are now 73 per cent off from the IPO price.

 

Funding Circle saw its share price slide by more than 29% on Tuesday, after it slashed its revenue growth forecast for 2019 in half.

The alternative lender said that it expects revenues to grow by 20% in 2019, down from its initial forecast of around 40%.

The P2P lender, which operates in the UK, US, Germany and the Netherlands, saw its stock close at 164p a share on Monday, only for it fall to 115p a share as of 17:10 GMT on Tuesday following its latest trading update.

The Evening Standard is one of many others to offer a take.

Yahoo Finance sees parallels with the credit crunch of 2008.

Funding Circle share price tumbles after revenue growth warning | IG UK

3. UK – Regulation

Investment Week says FCA board requirements “won’t prevent another Woodford”.

4. US – FinTech

The Winklevoss-owned cryptocurrency exchange Gemini will apply for a broker-dealer license from the Financial Industry Regulatory Authority (FINRA), according to CoinDesk.

“This is the first step toward becoming an approved Alternative Trading System, where customers can lawfully swap digital securities.

Gemini previously partnered with the tokenized securities platform Harbor, which allows institutional investors to buy securities with Gemini’s GUSD stablecoin and to also receive dollar-denominated dividends via GUSD. It stands to reason that Gemini would also want to facilitate the trading of such securities on its own platform.”

 

5. International – FinTech

FinExtra reports:

“The Dubai Financial Services Authority (DFSA) accepted four FinTech firms into its 2019 Summer Innovation Testing Licence (ITL) Cohort following the evaluation of a number of applications.

These four firms can now apply for an ITL, with the first batch of licences expected to be granted by the DFSA in October of this year.

Invitations to join the 2019 Summer Cohort were open to international firms, and the DFSA received expressions of interest from across the world, spanning a range of innovative, tech-driven products and solutions covering a range of business models. The successful firms intend to engage in equity crowdfunding with tokenisation of the equities, the operation of a blockchain-enabled property crowdfunding platform, and the facilitation of blockchain-enabled supply chain financing.”