What Will the DORA Regulation Bring in 2025?
As we approach 2025, the European Union’s new regulation known as DORA (Digital Operational Resilience Act) will come into effect, complementing existing regulations MiFID II and MiCA. This regulation aims to enhance the digital resilience of financial institutions against cyber threats. Virarosi, with its Estonian license, already meets these regulatory requirements and is prepared to offer a secure and transparent environment for its clients. More information below in the full article.
Overview of Existing Regulations: MiFID II and MiCA
MiFID II (Markets in Financial Instruments Directive II) is an EU directive that came into force on January 3, 2018, aimed at increasing transparency in financial markets and enhancing investor protection. This regulation covers a broad range of financial instruments, including some cryptocurrency derivatives, impacting crypto exchanges as well.
MiCA (Markets in Crypto-Assets) was adopted by the EU on April 20, 2023, and is expected to come fully into effect in December 2024. MiCA establishes a unified framework for the regulation of crypto assets in the EU, aiming to protect investors and ensure market integrity. This means crypto exchanges must adhere to stringent transparency and security requirements.
What Does the New DORA Regulation Bring?
DORA (Digital Operational Resilience Act) is a European Union regulation that took effect on January 16, 2023, and will be fully enforceable from January 17, 2025. Its main goal is to strengthen the digital resilience of financial institutions against cyber threats and ensure service continuity, directly impacting cryptocurrency exchanges.
DORA introduces several key requirements:
ICT Risk Management: Financial institutions must implement robust systems for identifying, assessing, and mitigating information and communication technology (ICT) risks.
Incident Reporting: Requirement to report significant ICT incidents to relevant authorities within specified deadlines.
Digital Resilience Testing: Regular testing of systems and processes to verify resilience against cyber attacks.
Third-Party Management: Monitoring and managing risks associated with ICT suppliers and service providers.
How Is Virarosi Preparing for DORA?
With its Estonian license, Virarosi already complies with all requirements and awaits further specifications from DORA. Estonia is known for its advanced approach to digital technologies and regulations, enabling Virarosi to provide secure and transparent cryptocurrency services.
Implementation of Robust Risk Management Systems: Ensuring protection against cyber threats and service continuity, crucial for all users seeking secure cryptocurrency transactions and up-to-date cryptocurrency price tracking.
Transparency and Investor Protection: Providing clear information on cryptocurrency rates and ensuring the safety of client assets.
Compliance with European Regulations: Adhering to the requirements of MiFID II, MiCA, and DORA to ensure the credibility and stability of cryptocurrency services.
What Does This Mean for Users?
For users of crypto exchanges and other crypto services, the implementation of DORA regulation brings enhanced security and reliability. Thanks to these regulations, users can expect:
Safer Transactions: Protection against cyber threats and assurance of transaction integrity.
Transparent Information: Access to current and accurate information on cryptocurrency rates and other relevant data.
Higher Service Standards: Providers will be required to follow stricter rules, leading to improved service quality.
Conclusion
As we move toward 2025, the DORA regulation will complement existing MiFID II and MiCA regulations. This regulation will strengthen the digital resilience of financial institutions and increase security for users of crypto services. Thanks to its Estonian license, Virarosi is already prepared for these changes, ensuring a safe and transparent environment for cryptocurrency trading for its clients.
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