What to expect in 2023
The European Union has an unusual IT strategy. While the United States prioritizes global development, Tech The EU is focused on being the leading regulator of the industry.
In 2022, this block introduced two strict new rule sets. The Digital Market Act (DMA), which seeks to increase competition for online services, and the Digital Services Act (DSA), which seeks to protect people from online harm. Analysts expect regulatory action to accelerate next year.
“The only thing we can be sure of is that next year there will be more regulations and stronger enforcement. GRC International Groupis a global provider of IT governance, risk management and compliance solutions.
To assess the details, TNW asked IT experts across the bloc to predict from EU policy in 2023. All laws are expected to change significantly, and certain technologies stand out in the forecast.
Enhanced security
Our experts expect significant progress in cybersecurity regulation. Costas Rossoglou Shopify EMEA and international public policy and government affairs heads emphasized the importance of the Digital Operational Resilience Act (DORA).
Recently adopted regulations aim to harmonize the financial sector’s approach to cybersecurity. To be compliant, organizations review legacy IT systems and may invest in new software, and thus need to invest in new software. This may be costly in the short term, but Rossoglou is optimistic that it will pay off. He hopes his level of security will improve, which will limit attacks, reduce downtime, and save cash.
“It will take years for compliance to become mandatory, but ultimately financial institutions will be put in a stronger position to deal with outages, data breaches, unauthorized access, and data loss. will be,’ he said. “This is very important in the highly sensitive information held by the financial sector.”
“It’s never too early to find out.
Another proposal underway in the EU is the Cyber Resilience Act. The regulation establishes cybersecurity requirements for connected devices and provides consumers with transparency regarding practices, testing, and general functionality.
The bill is currently undergoing a consultation process. Rossoglou recommends that the organization monitor progress over the next year.
“It will likely take a year or two to reach a final decision, after which organizations will have a 24-month transition period to comply,” he said. “But it’s never too early to notice the changes ahead. Regular monitoring for updates can help companies prepare for change in good time.”
In fact, these preparations can become increasingly important. Calder predicts the new EU rules will come with stricter enforcement.
“In particular, the whole area of cybersecurity is rapidly increasing in terms of regulation and enforcement as the EU Commission moves to force organizations to take cybersecurity measures that it has not been able to voluntarily implement. would,” he said.
Algorithm accountability
The EU is also developing new regulations on artificial intelligence. This is based on the potential for technology to cause harm. Dubbed the AI Act, the law forces everyone who wants to use, build or sell her AI products and services within the EU to follow the rules.
Matt Peake, Global Director of Public Policy at Identity Verification Firm, said: Onfid“The framework is designed to be risk-based, so the level of regulation will depend on the level of risk.”
according to Global research by Accenture, the rules have a deep impact. About 95% of respondents said that at least part of their business would be affected by her EU regulations.
Accenture researchers anticipate that compliance with AI law will require a risk management framework. They also expect the rules to be adopted by the end of 2023, with a two-year grace period before the rules take effect. However, that timetable may not be as generous as it seems.
“From my experience working with large organizations on major enterprise-wide compliance programs (GDPR, responsible AI, etc.), establishing all the controls required for compliance can easily take up to two years. It is suggested that there is,” the research team wrote. in the report.
follow the money
Cryptocurrencies are becoming a focus of technical regulation. In the EU, scope of controversy Headed the bloc to formulate new laws for the department.
“We believe 2023 will be a landmark year for crypto regulation,” says co-founder and CEO Ivan Liljeqvist Moralisa Web3 API provider.
Liljeqvist highlights the importance of the Market in Crypto Assets (MiCA) bill. The European Parliament is expected to vote on the bill in February. This is the continent’s first comprehensive cryptocurrency regulation.
Competition is likely to intensify in the coming years with Big Tech’s entry into the Web3 and Metaverse, potentially requiring more scrutiny by regulators. The European Union recently introduced the Crypto Asset Market (MiCA) law, but even EU Commission insiders found some wording about NFTs vague, frankly inaccurate.
This proposal is based on the European Commission’s future digital financial strategy. Additionally, they may provide a reference point for other regulatory bodies.
“While the bill is unlikely to be rolled out by the end of the year, I would expect legislators to be cautious and over-regulate rather than under-regulate whenever we address initial legislation. said Liljeqvist.
“What I would like to see, and what others in the market would like to see, is sensible rather than oppressive regulation that protects the principles of innovation and competition. We believe the bill is open-minded and flexible enough to be amended according to how the market develops.”
Liljeqvist wasn’t the only one to voice alarm. Jake Stott, CEO of Web3 Creative Agency hypeconcerned about the impact on the market.
“As tech giants such as Meta, Reddit, Google, and Apple continue to make inroads into Web3 and NFTs, the regulatory landscape could quickly escalate, further increasing market uncertainty.”
“They need to move at a faster pace.
But some critics argue the EU needs to regulate the sector more quickly. Martin Magnone, co-founder and CEO of a credit company timitbelieves that 2024 will be the year before the new law begins to have an impact.
“For the EU to succeed in taking a stronger position, it needs to move at a faster pace with the industry,” he said.
open access
Meanwhile, the payments sector is preparing for the European Commission’s review of PSD2, the EU regulation on online transactions.
Industry insiders have high hopes for this review, scheduled for 2023. They believe this will allow European SMEs and consumers to receive better payment results at better prices.
Under current regulations, only financial institutions have access to European payment schemes. As a result, non-banks and more innovative companies will have to go through traditional banks to benefit from the scheme.
“This creates a reliance on credit institutions and their legacy systems. Eranee Stein, director of operations for the platform, said module.
“If the PSD2 review included consideration of which institutions could directly access and settle European payments, the impact could be ground-shifting. It has the potential to increase competition and lower payment costs for all Europeans.”
In fact, many of the experts we spoke to expect the EU to prioritize open access.
“The main focus of the EU towards 2023 remains big tech platforms and achieving their goals of making them more open and interoperable,” said Timit. Martin Magnon.
“From labor laws to taxes, the measures introduced so far to ease the monopolies of big tech companies have been only partially effective and have not yet produced the desired effects. The EU will rectify this and go further to achieve its open access goals.”
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