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ESMA to prioritize EU-wide AI and tokenization supervision in 2027

National regulators will map client-facing uses of the technologies, check a subset of firms and develop common approaches to oversight.

ESMA to prioritize EU-wide AI and tokenization supervision in 2027

The European Securities and Markets Authority (ESMA) aims to focus on AI and tokenization supervision in the European Union starting in 2027. National regulators will assess client-facing uses of these technologies, check a subset of firms, and develop common approaches for oversight. They will identify where tokenization is emerging and document AI and tokenization usage in products and processes affecting investors.

Initial checks will be conducted on a subset of firms most affected by these technologies. This new supervisory priority targets risks such as biased or misleading AI outputs, products that are hard to understand for investors, and reliance on a limited number of third-party providers. Every three years, ESMA identifies up to two Union Strategic Supervisory Priorities (USSP) relevant across the EU, reflecting emerging developments and trends.

Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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