The Digital Operational Resilience Act (DORA) is designed to ensure that financial entities within the European Union are prepared to handle a variety of digital risks, such as cyberattacks, system failures, and any operational disruptions caused by technology. This act is part of the EU’s broader efforts to strengthen the financial sector against sophisticated digital threats. With DORA set to take effect on January 17, 2025, businesses in the crypto industry must understand its requirements and potential impact.
The regulatory framework applies to traditional financial institutions like banks and investment firms, FinTech companies like cryptocurrency businesses, as well as third-party IT service providers such as cloud services and other IT infrastructure companies.
Under DORA, crypto payment processors will need to implement robust cybersecurity measures, strengthen risk management processes, perform regular testing of their operational resilience, and manage third-party providers.
DORA benefits individuals using crypto to pay for goods and services, as the new regulations ensure safer transactions and increased trust in the use of crypto payments. The broader crypto industry may also face both challenges and opportunities due to DORA, as increased regulatory oversight could lead to credibility improvements while also increasing compliance costs for smaller firms.
Source: Digital Operational Resilience Act (DORA)