EC launched two public consultations: one seeks views on the suitability of the existing regulatory framework for crypto-assets including “stablecoins” and the other requests feedback on how the existing legislative framework can be improved to ensure that the financial sector can deal with cyber-attacks and other risks arising from increasing digitization. The feedback from the public consultations will feed into the impact assessment of EC on possible upcoming initiatives. The comment period for both consultations ends on March 18, 2020, as mentioned in the EC Press Release.
To promote digital finance in Europe, while adequately regulating its risks, in light of the mission letter of Executive Vice President Dombrovskis, EC services are working toward a new Digital Finance Strategy for EU. Key areas of reflection include deepening the Single Market for digital financial services, promoting a data-driven financial sector in EU while addressing its risks and ensuring a true level playing field, making the EU financial services regulatory framework more innovation-friendly, and enhancing the digital operational resilience of the financial system. EC may consult further on other issues in this area in the coming months. The consultation on the:
- EU Regulatory Framework for Crypto-assets seeks feedback from stakeholders on whether and how to classify crypto-assets. It concerns both crypto-assets that fall under existing EU legislation (those that qualify as "financial instruments" under Markets in Financial Instruments Directive (MiFID) II and those qualifying as "e-money" under e-money directive or EMD2) and those that do not.
- Digital Operational Resilience is aimed to gather stakeholder views on the need for legislative improvements within the financial services acquis with a view to harmonize rules across EU in a proportionate way to make the financial sector more secure and resilient while alleviating compliance and administrative burdens. EC services would welcome stakeholder input in four main areas—requirements on information and communications technology (ICT) and security risk management in the legislative acquis applicable to the financial sector, incident reporting requirements, digital operational resilience testing framework, and oversight of ICT third-party providers to the financial institutions.
- Press Release
- Consultation on EU Framework Crypto-Assets
- Consultation on Digital Operational Resilience
Comment Due Date: March 18, 2020
Keywords: Europe, EU, Banking, Insurance, Securities, Crypto-Assets, Stablecoins, Regulatory Framework, Fintech, Operational Risk, Cyber Risk, EC
Previous ArticleDNB Decides on No Countercyclical Capital Buffer in Netherlands
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.