ESMA to Prioritize Supervision of AI and Tokenization Starting in 2027

Odaily News: The European Securities and Markets Authority (ESMA) will include AI and tokenization in the EU's strategic supervisory priorities starting in 2027, coordinating relevant oversight among member state regulators.

Regulators will map out AI and tokenization applications oriented toward investors, document how financial institutions are using or planning to use them in products and processes, and conduct preliminary examinations of some affected institutions.

ESMA will focus on risks such as biased or misleading AI outputs, products that are difficult for investors to understand, and reliance on a small number of third-party vendors. This matter will be advanced in parallel with the cyber and operational resilience supervisory priorities launched in 2025. (Cointelegraph)