Fostering FinTech Innovation Through the Creation Of Regulatory Cyber Resilience in the DLT & Crypto-Assets Framework

In spite of their transparency, decentralization and suitability for further applications, crypto assets are still considered a novelty and are characterized as a risky asset class. One of the biggest concerns of investing in crypto assets according to ESMA is the danger of cyber-attacks. Last month, the EU issued two new proposals regarding DLT and crypto assets. These proposals are part of the European initiative to foster FinTech innovation in an increasingly digitalized world. Although recent regulatory efforts from the European Union have been seen as a step towards the creation of higher cyber resilience in the EU DLT framework, we argue that DLT could also pose some novel forms of cyber risks (in the domain of crypto assets) that are not appropriately addressed by the proposed rules and further research is needed.