Danish reg’ rolls out two-year fintech plan
Among tech priorities for the 2021-2023 period, Danish market watchdog FSA will first continue to dig in the use of new technologies into anti-money laundering practices. It has already analysed pros and cons of various initiatives in that area in a report, currently open for public consultation. A European anti-money laundering authority is due to be established in 2024 as part of Europe’s digital finance strategy that also includes the implementation of a framework around the use of digital identity solutions.
Access to customer data and open finance is another priority raised by the FSA. It will thus look into the spread of open banking principles to other parts of the financial sector. Furthermore, it will analyse whether regulation of large technology companies (Amazon, Google, Facebook, Apple, etc) entering the financial space should be revised and strengthened. FSA will also set up a local application programming interface group on open finance.
Regulating crypto-assets forms FSA’s third priority. The watchdog is closely monitoring developments of the future European Markets in Crypto Assets (MiCA) regulation. FSA is set to initiate a discussion on ways to identify a legal entity when an activity or a service is provided in a decentralised manner. As a preliminary step to these talks, the Danish regulator will map how and to what extent financial activities and services are being decentralised. Moreover, FSA considers the establishment of a crypto-monitoring group in Denmark, which can provide input for the work on the forthcoming regulation.
Lastly, the Danish supervisor intends to update the whitepaper it published in July 2019 on good practices in the use of machine learning and artificial intelligence (AI). It will focus on three aspects, namely explainable AI rules, good governance in the AI space and ethics around the use of AI in the financial sector.