We’re kicking off this week with a topic somewhat related to our blog posts last week on crypto regulation in various parts of the world. Specifically, this package introduced by the EU in September 2020, partly stimulated by the COVID-19 pandemic, was developed with the future in mind and provided a basis for digital financial regulation to be built upon in the future.
This brings us to 2022, a year where, thankfully, most of us have left lockdown and our home-offices behind, yet development in many digital sectors, including that of crypto assets, is continuing at a rapid rate to meet the demand of investors and businesses involved in their use.
What is digital finance?
In its simplest terms, it encompasses technology which is developed to perform or facilitate financial services, and their subsequent impact on the finance industry as a whole.
This may include services we are all familiar with, like online banking, or online investment advice, and therefore indicates a broad range of technology which can be quite hard to govern. However, the EU proposal for a Digital Finance Package was set in motion to assist you and your business, helping you stay within a legislative framework and avoid trouble further down the line.
So, what is the package for?
Please find below a list of the core areas covered by the EU package:
· Digital finance strategy
· Legislative proposals for crypto regulation
· Proposals for EU regulations on digital operational resilience
It is interesting to note here the EU’s commitment to fintech and digital finance on the whole, stating, “the future of finance is digital”, providing you and your business with the reassurance that regulatory bodies are behind you, permitting greater innovation and hopefully expanding the scope for investment into multiple financial services already taking the digital route.
Are there any wider benefits to my business?
The idea of the package is to put all firms on the same playing field, be it a large corporation or an ambitious start-up looking to innovate technology in the sector. This means that with consistent legislation and regulation, the consumers are protected, and for your business, the rules are more suited to digital platforms, looking to the future and not inhibiting your potential growth.
So, if you are interested in finding out more about the European Union’s Digital Finance Package, as well as other opportunities to develop your business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
Also, if you want to access our other great content, subscribe to our YouTube channel! At Creimerman, our team of professional global citizens would be happy to help you with your personal or professional cross-border ventures and help make them a success.