The new EU 'DORA' rules come into effect: What does this mean for cryptocurrency?

The European Digital Operational Resilience Act now applies to cryptocurrency businesses, expanding the scope of MiCA and requiring companies to enhance cybersecurity and risk management.

Cryptocurrency businesses in the European Union must comply with new cybersecurity regulations as the Digital Operational Resilience Act (DORA) comes into effect on January 17.

DORA impacts the cybersecurity and resilience operations of virtual asset service providers (VASP) in the region.

To comply with DORA, financial institutions in the EU must maintain a comprehensive registry of contractual agreements with third-party IT service providers to ensure secure infrastructure and risk management.

The new DORA regulations further expand the EU's Markets in Crypto-Assets Regulation (MiCA), aimed at improving resilience against incidents such as cyberattacks and IT failures, ultimately targeting better investor protection and market integrity.

DORA has a significant impact on licensed MiCA companies.

Matt Sullivan, Deputy General Counsel and Director of the Ireland branch of crypto infrastructure company MoonPay, stated that DORA has a significant impact on MiCA-licensed cryptocurrency companies.

Sullivan told Black Swan: “All virtual asset service providers licensed under MiCA must comply with DORA requirements.” #DORA