the European elections It is an electoral appointment that usually goes unnoticed. Many citizens do not know why voting is important in this election What exactly do you decide in the European Union?. But there are very important matters being decided there, such as the rules by which European banks must play. In this sense, they will depend on the composition of the next European Parliament Six regulations affecting the financial industry. The upcoming European legislature will be used to adopt regulations that expand payment services, improve investor protection, adapt digital operations to the current context and regulate the use of cryptocurrencies.
Expanding payment services
The European Commission is reviewing the current framework and working on proposed changes to the revised Payment Services Directive and the Regulation of Payment Services. With this review aims to approve Changes in the payments sector in the European Union Which enhances security in transactions and protects users. Also required Harmonizing licensing standards for payment service providers.
In addition, it aims to increase competition in servicesOpen banking Facilitating non-banking service providers’ access to payment systems in order to create a more competitive and transparent market. The new package to be considered by the European Parliament also includes new regulations to make progress in the fight against fraud.
Digital euro
Another important regulation that must be faced in the next five years is the regulation of the digital euro. The European Commission and the European Central Bank have been working on this since 2021, but it must be completed in this legislative body. The next stages of the regulation are for the European Parliament and the Council to adopt an initial position to be negotiated in the tripartite dialogues, where there is currently no consensus. the Introduction of the digital euro for retail use It can lead to significant changes in the performance of the financial system, especially in infrastructure and payment systems.
Digital currencies
The European Parliament will have to do so as well Monitoring compliance with Phase 1 of the Mica Regulation, which regulates the requirements for cryptocurrency providers in the Eurozone. The regulation will begin to apply from December 30 to new providers of the cryptocurrency market, although some states will have a transition period until December 31, 2024. In the Spanish case, new providers will have to obtain a license from the National Securities Market. The Commission (CNMV) is registered by the European Securities and Markets Authority (ESMA). In addition, the European Union is currently working on The second stage of the regulationWhich must be discussed and voted on during this legislative body.
Digital Operational Resilience Act
In addition, the European Parliament will have to apply to all Member States from January 2025 the DAURA Regulation, and Digital Operational Resilience Act. This law, which was passed by the end of 2022, ensures that financial institutions are able to resist digital operational threats.
Protecting the wealth of the most modest investors
The retail investment strategy, designed to protect investors with more modest assets, will have to be reconsidered by the European Parliament. Initially, he gave the green light, but the process was halted because elections would be called and would be necessary Building a new consensus Around her with the new configuration of the room.
Regulating sustainable finance
Finally, the consultation phase on the SFDR Regulation, which deals with sustainable finance and which entered into force in 2021, should be closed.Issuing fund classification to managersTherefore, the Authority will move away from the current framework and sustainable investment will be based on justifying investment strategies and searching for sustainable financial transformation for companies.
Although all of these regulations will depend on the new formation of the European Parliament, experts expect that the new European Parliament will maintain a continuous line regarding financial regulation.
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