With the goal of making Europe's financial services more digital-friendly and stimulating responsible innovation and competition among financial service providers in the EU, the European Commission announced its adoption of a Digital Finance Package.
This package includes a Digital Finance and Retail Payments Strategies, legislative proposals for an EU regulatory framework on crypto-assets, and on digital operational resilience.
Key highlights of the package are as follows :
Digital Finance Strategy
Remove fragmentation in the Digital Single Market and obstacles to cross-border operations, enabling greater access to more cost-effective products and services
Facilitate digital innovation in the interest of consumers and market efficiency by adapting the EU regulatory framework accordingly
Promote data-driven innovation, building on the European Data Strategy
Address challenges and risks associated with digital transformation to promote resilience and data protection
Establish a pilot regime applicable to crypto - assets already governed by EU legislation for market infrastructures that want to trade and settle transactions in financial instruments in crypto-asset form
Implement a bespoke regime for previously unregulated crypto-assets, including the so-called 'stablecoins' through the supervision and strict regulation (e.g. custody of assets, mandatory complaints holder procedure) of crypto-asset service providers and issuers of crypto-assets providing their services in the single market
Digital operational resilience
Consolidate and upgrade capacity of firms to withstand Information Communication Technologies (ICT)-related disruptions and threats through risk management capabilities, reporting of major ICT-related incidents, digital operational resilience testing, management by financial entities of ICT third-party risk, oversight of critical ICT third-party service providers, and information sharing among financial entities
Retail Payments Strategy
Make instant payments and EU-wide payment solutions more accessible and cost effective
Ensure consumer protection and safe payment solutions
The digital finance package will benefit consumers and businesses by favouring innovation and access to digital products and services in a secure and resilient environment.
More details on the package can be found on the European Commission's website https://ec.europa.eu/info/publications/200924-digital-finance-proposals_en