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ESMA to Prioritize AI and Tokenization Oversight in 2027
The initiative will map firms’ use of AI and tokenized products and run initial checks on the most affected firms, the watchdog said.
- Starting in 2027, ESMA will make artificial intelligence and tokenization a new supervisory priority, examining how regulated firms use these technologies in core financial activities rather than back-office operations alone.
- Firms are increasingly using artificial intelligence and tokenized products to gain market share, the Markets Authority said in a report released Wednesday, explaining why it is focusing on these two areas initially.
- 'Innovation with investor safeguards' will focus on building regulators' ability to supervise new technology while ensuring firms have proper governance, reliable data, and client-aligned outcomes.
- Recently, The European Central Bank announced several moves in tokenization, including investing reserves in tokenized securities and debuting its Pontes platform, which connects DLT market infrastructure to traditional payment systems.
- The European Union is shifting from setting rules under MiCA to examining how tokenized finance and artificial intelligence impact the broader securities industry, strengthening oversight across regulated firms.
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EU's financial regulator to make AI and tokenization a supervisory priority in 2027
EU's financial regulator to make AI and tokenization a supervisory priority in 2027 European regulators will map how financial firms use the technologies in client-facing products and begin checks on the most affected businesses. The European Securities and Markets Authority will make artificial…
The European Securities and Markets Authority focuses its attention on tokenisation and AI. From 2027 on, national authorities will record which companies use the technologies and conduct initial audits. Source: BTC-ECHO BTC-ECHO
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