Brussels, |
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EU Regulation on a pilot regime for market infrastructures based on distributed ledger technology
In a strategic move towards embracing the digital revolution, EU adopted a Regulation that forms a cornerstone of a larger package designed to propel digital finance while ensuring innovation, competition, and risk mitigation. The Regulation is aligned with the EU's commitment to propel Europe into the digital age, fostering an economy that resonates with the needs of the people.
A Multifaceted Approach to Digital Finance Central to this initiative is the Digital Finance Strategy for the EU financial sector, which envisions harnessing the potential of the digital wave while ensuring that European firms spearhead the innovation race. The strategy aims to democratize the benefits of digital finance, making them accessible to both European consumers and businesses. The initiative encompasses various dimensions, each catering to a distinct aspect of the financial landscape: 1. Payment Services Transformation: The proposal, a pivotal component of this digital finance package, seeks to revolutionize payment services and streamline them for the digital age. It delves into the nitty-gritty of transforming the existing Payment Services Directive (PSD2) into the more comprehensive PSD3, introducing a concurrent Payment Services Regulation (PSR). The overarching goal is to bolster the defense against payment fraud, amplify consumer rights, and enhance transparency, particularly in ATM charges. |
2. Crypto-Assets Framework:
Recognizing the increasing significance of crypto-assets, the proposal introduces a bespoke regulatory framework to navigate this intricate landscape. It encompasses a pilot regime for Distributed Ledger Technology (DLT) market infrastructures, aiming to bring legal certainty, spur innovation, and ensure consumer protection and market integrity. This framework underscores the EU's commitment to both capitalizing on the opportunities offered by crypto-assets and addressing the associated risks.
3. Digital Financial Resilience:
The digital revolution introduces new dynamics of operational resilience. The proposal addresses this by presenting a framework for digital operational resilience, ensuring that financial systems are fortified to withstand the digital era's challenges.
4. Clarifying Financial Services Rules: Additionally, the package includes proposals to amend certain financial services rules to provide clarity and cohesion in this swiftly evolving landscape.
A Response to the Digital Imperative
As part of the broader digital agenda, the European Commission's proactive stance reflects a keen awareness of the burgeoning potential of crypto-assets and blockchain technology. This proposal arrives after thorough examination and consultation, acknowledging the opportunities and risks that these innovations bring to the financial realm. The EU's response encapsulates a commitment to foster a harmonized approach among Member States, capitalizing on crypto-assets' potential while addressing the challenges.
Charting a Forward Path
The proposal marks a pivotal step towards a digitally empowered financial future. It aligns seamlessly with the EU's overarching vision of a technologically robust, innovative, and consumer-centric financial landscape. By setting the stage for secure data sharing, innovation, and protection, this initiative cements the EU's position as a global frontrunner in navigating the digital evolution within the financial sector. As Europe readies itself for the digital era, this proposal embodies the commitment to harnessing innovation, embracing change, and steering the financial sector towards a resilient and progressive future.
Recognizing the increasing significance of crypto-assets, the proposal introduces a bespoke regulatory framework to navigate this intricate landscape. It encompasses a pilot regime for Distributed Ledger Technology (DLT) market infrastructures, aiming to bring legal certainty, spur innovation, and ensure consumer protection and market integrity. This framework underscores the EU's commitment to both capitalizing on the opportunities offered by crypto-assets and addressing the associated risks.
3. Digital Financial Resilience:
The digital revolution introduces new dynamics of operational resilience. The proposal addresses this by presenting a framework for digital operational resilience, ensuring that financial systems are fortified to withstand the digital era's challenges.
4. Clarifying Financial Services Rules: Additionally, the package includes proposals to amend certain financial services rules to provide clarity and cohesion in this swiftly evolving landscape.
A Response to the Digital Imperative
As part of the broader digital agenda, the European Commission's proactive stance reflects a keen awareness of the burgeoning potential of crypto-assets and blockchain technology. This proposal arrives after thorough examination and consultation, acknowledging the opportunities and risks that these innovations bring to the financial realm. The EU's response encapsulates a commitment to foster a harmonized approach among Member States, capitalizing on crypto-assets' potential while addressing the challenges.
Charting a Forward Path
The proposal marks a pivotal step towards a digitally empowered financial future. It aligns seamlessly with the EU's overarching vision of a technologically robust, innovative, and consumer-centric financial landscape. By setting the stage for secure data sharing, innovation, and protection, this initiative cements the EU's position as a global frontrunner in navigating the digital evolution within the financial sector. As Europe readies itself for the digital era, this proposal embodies the commitment to harnessing innovation, embracing change, and steering the financial sector towards a resilient and progressive future.