Mon Nov 28, 2022 ▪ 12:00 PM ▪
min read – through
The European Union has a history of taking strong measures to regulate the functioning of the crypto industry. It has just demonstrated this again by passing cybersecurity legislation. This new standard is particularly aimed at all providers of digital finance and cryptocurrency. The new rules will only apply from 2025, just over 24 months after they are published in the EU Journal. The law in question is essentially about digital operational resilience.
The new law on crypto and digital finance praised in the European Parliament
November was a bit special for the crypto universe. The FTX affair crystallized attention, but it was not the only news as the European Union has become a legislation to regulate suppliers. This new law, which concerns the digital operational resilience will not enter into force until 2025. It is not about the crypto industry in general, but specifically about the virtual currency and digital finance providers. This approval was practically a plebiscite, as there were 556 votes in favor and only 18 against.
DORA is designed so that the risk management within the European Union is carried out in total harmonisation. The idea is to hold financial institutions accountable. From now on they will have to monitor and alert in the event of an incident. Suppliers, in turn, will have to comply with real scrutiny from European regulators. This law only has consequences financial entities regulated by the EU. In other words, it concerns classic banks, providers of digital finance and cryptocurrencies and finally investment companies. If a company is used to providing technological analysis servicesthen the target of this new standard.
It is ultimately in 2025 that this legislation will come into force. Frances Fitzgeraldthe MP and co-drafter of the law said that: “We must protect our citizens more strongly. We don’t want anyone’s personal financial information hacked “. So the tone is set, the EU does not want to give up an inch to hackers, because investor safety is at stake,
This law will certainly make it possible to beat cybercrime, which is becoming increasingly uncontrollable. Last year, the crypto industry reportedly lost nearly $3 billion in 125 breaches. In the first half of this year, breaches had already weighed 2 billion on the crypto market.
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Cédrick Aimé, graduate student in finance law and experienced SEO web editor, is passionate about cryptocurrencies, trading, etc. He naturally participates in the daily blockchain revolution for better democratization of DeFi thanks to his articles.