Summary
- The European Securities and Markets Authority (ESMA) said it had designated digital innovation as an EU Strategic Supervisory Priority (USSP) and identified AI and tokenization as the initial areas of supervisory focus.
- Financial authorities in EU member states plan to identify where tokenization is spreading in financial markets and examine how financial firms are using AI and tokenization in products and business processes.
- ESMA said it plans to strengthen supervisors' expertise and establish a consistent supervisory approach across the EU as the use of AI and tokenization expands in financial services.
Forecast Trend Report by Period
The European Union has designated artificial intelligence and tokenization as core supervisory priorities for next year.
Cointelegraph reported on September 23 that the European Securities and Markets Authority said it had designated digital innovation as an "EU Strategic Supervisory Priority," or USSP. ESMA identified AI and tokenization as the initial areas of supervisory focus.
Financial authorities across EU member states plan to identify areas of financial markets where tokenization is spreading. They will also examine how financial firms are using AI and tokenization in products and business processes. Plans for future use of the technologies will also be reviewed.
Authorities in EU member states will begin initial reviews by selecting financial firms that are heavily affected by the technologies. As the use of AI and tokenization expands across financial services, ESMA plans to strengthen supervisors' expertise and establish a consistent supervisory approach across the EU.
The USSP is a system under which ESMA coordinates the work of national financial regulators to address risks shared across member states. ESMA can select up to two strategic supervisory priorities to apply across the EU every three years.
