EU Parliament Passes Cybersecurity Rules for Crypto and Fintech Industries

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Last Updated on November 11, 2022 by Bitfinsider

The European Parliament passed the Digital Operational Resilience Act, which establishes new regulations for crypto asset service providers regarding cybersecurity.

The bill was approved by a vote of 556 in favor to 18 against.

DORA aims to harmonise risk management criteria and reporting processes for cybersecurity events. European regulators will oversee tech service providers and oblige financial institutions to monitor and disclose security incidents.

The new law applies to all EU-regulated financial institutions. These include traditional financial institutions such as banks and investment businesses, as well as digital currency and crypto-asset service providers. Companies that provide technological services, such as data analytics, are listed.
Frances Fitzgerald, a member of the European Parliament from the center-right who co-wrote the law, said in a statement, “Financial institutions and companies, including those in the crypto space, hold extremely sensitive customer data, and it is imperative that EU-wide digital security measures be implemented to combat the threat that exists.”

It is projected that the new regulation will be completely implemented in 2025, 24 months after its publication in the Official Journal of the EU.

Bitfinsider previously stated that October was the most active month of the year for hacking digital assets. In addition, more than $3 billion in losses were caused by hacks over 125 breaches in 2021, according to the analytics firm Chainalysis.

“We must create more stringent safeguards for our folks. We do not want anyone’s financial information to be compromised,” Fitzgerald stated. The MEP went on to say that DORA will “guarantee that Europe remains an important investment hub.”

DORA derives from the European Union’s 2020 digital finance package, which contains the Markets in Crypto Assets bill, which establishes regulations for crypto assets and their service providers. Due to the lengthy translation procedure, the vote on MiCA was postponed until February of next year.

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