From Pymnts · PYMNTS · · 1m 10s
EU Regulators Target AI and Tokenization for 2027
EU regulators will prioritize AI and tokenization oversight in financial services starting 2027.
In brief
EU regulators will prioritize AI and tokenization oversight in financial services starting 2027. EU securities regulator ESMA plans to monitor AI and tokenized products in financial services from 2027. Originally reported by Pymnts.
EU regulator sets 2027 priorities
The European Securities and Markets Authority will make AI and tokenization a supervisory priority starting in 2027.
Innovation with investor safeguards initiative
ESMA will work with national regulators to examine how financial firms use AI and tokenized products in core activities.
Focus on governance and customer outcomes
The initiative will strengthen regulators’ ability to oversee new technologies while assessing firms’ governance, data reliability and customer outcomes.
Mapping financial firms' technology use
Regulators plan to map where financial firms already use or intend to use AI and tokenization.
Initial checks on affected firms
They will conduct initial checks on a subset of firms most affected by the technologies and identify emerging tokenization in financial markets.
Broader regulatory focus beyond crypto
The effort comes as European regulators broaden attention beyond establishing rules for crypto assets.
What to remember
EU securities regulator ESMA plans to monitor AI and tokenized products in financial services from 2027.
