Tag: Crypto Regulation

  • EU Plans to Simplify GDPR in Move to Support Businesses

    EU Plans to Simplify GDPR in Move to Support Businesses

    The European Union is preparing to dial back certain provisions of the General Data Protection Regulation (GDPR), responding to widespread calls for regulatory relief from businesses, particularly small and medium-sized enterprises (SMEs). The proposal is expected to be presented by the European Commission in the coming weeks, as part of broader efforts led by Commission President Ursula von der Leyen to reduce red tape and enhance the pro-business environment in the EU. The [report by Politico](https://www.politico.eu/article/eu-gdpr-privacy-law-europe-president-ursula-von-der-leyen/) highlights that these changes are aimed at allowing European businesses to better compete with their counterparts in the U.S., China, and beyond.

    Since its introduction in 2018, the GDPR has imposed stringent rules on the processing of personal data and the management of user rights, which, while enhancing data protection, has caused considerable compliance challenges and costs for businesses. Notably, Denmark’s Digital Minister Caroline Stage Olsen underscored the need for practical regulation that could ease compliance burdens, emphasizing that “we don’t need to regulate in a stupid way.”

    Moreover, Justice Commissioner Michael McGrath has acknowledged the necessity of the revision, stating that the review uncovered the need for additional support for companies, particularly SMEs, struggling with the complexities of the regulations. The anticipated proposal to streamline GDPR is now due to be released on May 21, slightly later than originally scheduled.

    Experts like Dr. Ilia Kolochenko, CEO at ImmuniWeb, express that the anticipated changes are long overdue. He notes a significant level of dissatisfaction with the current GDPR framework and emphasizes that many individuals feel their data protection is not adequately enhanced. Kolochenko criticizes common practices such as “cookie fatigue” and highlights the rise in data breaches, suggesting that the inconsistencies in enforcement across EU member states contribute to a challenging business environment. He advocates for a revision that ultimately benefits both SMEs and consumer protection.

  • European Insurance Authority Proposes Strict Capital Requirements for Crypto Holdings

    European Insurance Authority Proposes Strict Capital Requirements for Crypto Holdings

    The European Union’s insurance authority has introduced a significant proposal requiring insurance firms to maintain capital equal to the full value of their crypto holdings. This mandate aims to mitigate the risks posed to policyholders in light of the volatile nature of cryptocurrency.

    The new proposal, revealed by the European Insurance and Occupational Pensions Authority (EIOPA) on March 27, establishes a stricter standard than that applied to other asset classes. While stocks and real estate may not require stringent capital backing, EIOPA suggests a 100% haircut for cryptocurrencies to account for their high volatility and associated risks.

    In its statement, EIOPA noted, “A 100% stress is more appropriate and aligns with one of the approaches to the transitional treatment of crypto-assets under the Capital Requirements Regulation (CRR).” This reflects an understanding that crypto asset prices could potentially fall to zero without the possibility of risk mitigation through diversification.

    The implications of such a regulation could be far-reaching, especially for insurers in Luxembourg and Sweden, which represent a significant proportion of crypto asset-related exposures among (re)insurance undertakings. According to EIOPA, Luxembourg and Sweden account for 69% and 21%, respectively, of these exposures.

    While the proposed capital requirements will not impose significant costs on policyholders, they are expected to enhance protections in case of material exposures in the future. As the landscape of crypto assets continues to evolve, EIOPA recognizes that further considerations may be necessary for broader adoption within the insurance sector.