The European Securities and Markets Authority will prioritize AI and tokenization as key regulatory focuses at the EU level starting next year

According to Cointelegraph, the European Securities and Markets Authority (ESMA) will establish a new EU strategic regulatory priority themed around digital innovation starting in 2027, initially focusing on AI and tokenization.

Regulatory authorities in EU member states will identify emerging areas of tokenization, documenting how businesses use or plan to use AI and tokenization technologies in products and processes that directly affect investors, and conducting preliminary checks on some of the most affected companies.

ESMA stated that the risks that need to be prioritized include biased or misleading AI outputs, products that are difficult for investors to understand, and reliance on a few third-party service providers. This priority will be advanced in parallel with the regulatory priority for cyber and operational resilience that will be launched in 2025.