The European Union has recently expanded the scope of its digital regulations to include cryptocurrency businesses. This move comes as part of the Digital Operational Resilience Act (DORA), which aims to strengthen the cybersecurity and risk management practices of companies operating in the digital space.

Under DORA, cryptocurrency businesses will now fall under the same regulations as traditional financial institutions, such as banks and investment firms. This means that they will be required to comply with the same strict standards when it comes to cybersecurity and risk management.

One of the main objectives of DORA is to ensure the operational resilience of digital businesses, especially in the face of increasing cyber threats. With the rise of cryptocurrency and blockchain technology, it has become crucial for these businesses to have robust security measures in place to protect their assets and customers’ data.

The expansion of DORA’s scope also means that cryptocurrency businesses will now be subject to the Markets in Crypto-Assets Regulation (MiCA). This regulation, which is set to come into effect in 2022, aims to create a harmonized framework for the regulation of crypto assets across the EU.

MiCA will require crypto businesses to obtain authorization from their national regulators and comply with strict rules on capital requirements, investor protection, and market abuse. This will not only enhance the credibility and stability of the crypto market but also provide greater protection for investors.

In addition to these regulatory requirements, DORA also emphasizes the importance of risk management for digital businesses. This includes conducting regular risk assessments, implementing robust security measures, and having contingency plans in place in case of a cyber attack.

Overall, the expansion of DORA’s scope to include cryptocurrency businesses is a significant step towards creating a safer and more resilient digital landscape in Europe. By setting high standards for cybersecurity and risk management, the EU is sending a clear message that it is committed to protecting both businesses and consumers in the digital age.