EU Tech Policy Predictions For The Next Decade!

 Big changes are coming to open access, fintech, and AI.

The European Union has an unusual IT strategy. While the US prioritizes the development of global tech giants, the EU focuses on becoming the sector’s leading regulator.

Analysts expect the regulatory drive to speed up next year.To gauge the details, TNW asked IT experts across the bloc what they predict from the EU’s policies in 2023. 

Enhanced Security

Our experts anticipate important changes in cyber security legislation. The recently passed rule attempts to unify the banking industry's cybersecurity strategy. Although it can be expensive in the short run, Lewandowski is confident that it will be beneficial. He anticipates a rise in security levels to minimise attacks, shorten downtime, and save money.

This is significant given the sensitive information the financial sector carries.The Cyber Resilience Act is another proposal that is being considered by the EU.

A consultation procedure for the law is now in progress. Lewandowski advises businesses to closely monitor its development in the upcoming year.

Then, he added, "organisations will be granted a 24-month transition period to comply." This is most likely to happen in the next year or two. "However, it is always a good idea to be informed of impending developments. Businesses will be well-prepared for the changes by keeping an eye out for developments.

These preparations may end up being quite important. According to Calder, tighter enforcement will go hand in hand with new EU regulations.

Automated Responsibility

Based on the potential for harm that artificial intelligence poses, the EU is also creating new legislation in this area. The law, known as the AI Act, will compel everyone who wants to use, develop, or market AI goods and services within the EU to abide by the regulations.

The regulatory level will be determined on the level of risk because the framework is risk-based.

The rules will have a significant impact, according to a global survey by Accenture. The EU laws will have an impact on at least some of the businesses, according to 95% of respondents.

Researchers at Accenture predict that a risk management framework will be required in order to comply with the AI Act. In addition, they forecast that the rule will be implemented before the end of 2023, with a two-year grace period before it takes effect. However, that schedule might not be as accommodating as it seems.

Observe The Money

The regulation of technology is increasingly focusing on cryptocurrencies. The EU has created new rules for the industry in response to a widening spectrum of debates.

Ivan Liljeqvist, cofounder and CEO of Moralis, a provider of Web3 APIs, predicted that 2023 will be a watershed year for cryptocurrency legislation.

The Market in Crypto Assets (MiCA) law is significant, according to Liljeqvist.

The ideas might be included in the future digital finance policy of the European Commission. Additionally, they could serve as a reference for other regulatory authorities.

The legislation must be adaptable and open-minded enough to be changed in response to how markets change.

Liljeqvist wasn't the only person to advise caution. CEO of Web3 creative agency Hype, Jake Stott, is worried about the effect on the market.

However, some detractors contend that the EU should regulate the industry more quickly. Co-founder and CEO of the credit startup Tymit Martin Magnone predicts that the new regulations won't have much of an effect until 2024.

"The EU must move at a faster speed in line with industry trends if they are to adopt a tougher stance," he said.

Granting Access

Insiders in the industry are very optimistic about the review, which is scheduled for 2023. They think it might result in improved payment results for consumers and SMEs in Europe, at a lower cost.

Only financial entities are now permitted access to European payment systems. As a result, to take advantage of the programmes, non-banks and more creative businesses must go via established banks.

Many of the experts with whom we spoke believe that the EU will prioritise open access. 

The EU will continue to work toward resolving issue and achieving its open access objectives in 2023.