The European Union has a history of taking strong measures to regulate the operation of the crypto industry. It has just demonstrated this again by adopting legislation on cybersecurity. This new standard is particularly aimed at all digital finance and cryptocurrency providers. The new rules will only apply from 2025, just over 24 months after they were published in the EU journal. The law in question is essentially about digital operational resilience.
The new law on crypto and digital finance acclaimed 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, since in the meantime the European Union adopted a legislation to regulate suppliers. This new law, which relates to the digital operational resilience will not come into force until 2025. It does not concern the crypto industry in general, but specifically the virtual currency and digital finance providers. This adoption 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 make financial institutions accountable. From now on, they will have to monitor and alert in the event of an event. Suppliers, for their part, will have to comply with real scrutiny from European regulators. This law will only affect financial entities regulated by the EU. In other words, it is about classic banks, digital finance and crypto providers and finally, investment companies. If a company is used to providing technological analysis servicesthen it is targeted by this new standard.
It is finally in 2025 that this legislation will become effective. Frances Fitzgeraldthe member of parliament and co-drafter of the law, said that: “We need to put stronger protections in place for our citizens. We don’t want anyone’s personal financial information hacked “. The tone is therefore set, the EU does not want to give up the slightest centimeter to hackers, because the security of investors is at stake,
Conclusion
This law will certainly make it possible to defeat 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 on the crypto market to the tune of 2 billion.
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