After a short absence we’re back with the hottest fintech news this week! Bitcoin takes a hit, the EU considers regulating fintech and P2P lending rebrands.

China cracks down on digital currency

As of this month, China has banned so-called ‘ICO’ (Initial Coin Offerings), curtailing local startups’ ability to raise funds by selling virtual coins instead of company shares. This follows a similar move in the US, Canada and Singapore but has had a stronger impact on crypto markets, contributing to a 15% drop in bitcoin valuation.

Chasing dreams abroad

With China tightening its hold on fintech, it’s perhaps no surprise that an increasing number of Chinese fintech companies are looking to Hong Kong and the US to raise cash through IPOs. This is especially true of the embattled P2P lending sector which has been hit by a number of domestic scandals over the past few years; affected startups appear to view international IPOs as a way to raise funds and improve their image.

Moving up in the world

You know fintech has made it when the European Central Bank announces it’s working on new licensing guidelines for fintechs. No news on what these guidelines will look like just yet but it’s official - we’re enough of a threat to the status quo to warrant pan-European regulations!

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Fintech money pot

UK fintechs are (justifiably) optimistic, with half predicting 2x revenues over the next 12 months, and a third expecting to IPO within 5 years. Australian fintechs will have to push harder if we want to take the top spot in the global race for fintech domination.

Solving inequality?

In the US, minority small business owners are turning to fintech startups to raise capital. Whereas banks are likely to turn down small business loan applications as high risk, fintech lending platforms are swooping to the rescue. We’re a while away from solving the world’s problems - not least because P2P lending is still an under-regulated sector that has faced its fair share of scandal - but the potential is there.