The European Union's financial regulators will elevate AI and tokenization as key regulatory milestones in the year 2027
#It's a digital asset#The AI#The Authority shall establish a list of the following:#The tokenization#Control of the finances
What's going on?
The European Securities and Markets Authority (ESMA) has stated that it will prioritize artificial intelligence, tokenization, and new technologies related to the financial sector as part of a new set of regulations with effect from 2027.
Why does it matter?
In a report released on Wednesday, ESMA explained the reason for choosing these two sequentially: "Companies are increasingly using AI and tokenized products in everyday financial services to carve out market share", adding that "technological innovation brings benefits but also risks".
How will the regulation of care change?
Under the new regulatory initiative, ESMA will work with national regulators across the EU to examine how regulated firms are taking AI and tokenized products into their core business activities rather than just back-office operations as in the past.
The initiative, called "Innovation with investor safeguards", focuses on two things: strengthening regulatory capacity to control new technologies and ensuring that companies have the right policies, reliable data and outcomes aligned with customer interests.
Signal from the European Central Bank.
This trend is consistent with the European Central Bank's (ECB) recent moves in tokenization and stablecoins, as the ECB just announced earlier this week that it plans to move a small portion of its reserves into tokenized securities which would allow the central bank direct exposure to blockchain-based financial markets.
What does that mean for readers in Thailand and Myanmar?
The direction of ESMA and ECB reflects that leading financial institutions are taking these technologies from the pilot stage into real-world use in the marketplace, so it is likely that global regulatory standards will put pressure on local agencies such as Thai the SEC (Thailand) to follow suit.
Warning of the dangers.
This article is compiled and edited for informational purposes only, not investment advice or encouragement in all cases. The price of digital assets and cryptocurrencies are highly influential and may be affected by changing regulatory regulation. Readers should carefully study the information, consider the potential risks involved, use intuition to make their own decisions, and consult a financial professional before making any investments.
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