The digital transformation is impacting almost all industries, and the adoption of new technologies such as artificial intelligence, machine learning, internet of things, blockchain, and virtual reality is not slowing down. These technological advancements bring with them new challenges for businesses. This is why the EU Parliament proposed a resolution on digital trust in December 2018. The EU wants to support businesses and individuals by setting up an appropriate regulatory framework so they can continue to benefit from new technologies while mitigating potential risks. In this blog post we provide an overview of the EU Version:0.9 StartHTML:0000000105 EndHTML:0000000311 StartFragment:0000000141 EndFragment:0000000271 cryptoсurrency license initiative and explain why Lithuania is a perfect location for implementing it in practice.
What is the EU Crypto License?
The EU Crypto License is a decision-making framework for regulating the use of cryptographic technologies. It is not a license in the traditional sense of the word; it is not a document to be issued to individuals or organizations. The decision-making framework has three components: – an EU-wide risk assessment to identify potential risks and make recommendations for mitigation; – an EU-wide certification scheme for cryptographic products. The scheme will ensure interoperability and compliance for products used for securing sensitive information and for digital signatures; – a voluntary EU-wide code of conduct for companies involved in the supply chain of cryptographic products. The code of conduct will set out best practices for risk management and supply chain security.
Why a crypto licence?
Cryptographic technologies are essential in the digital transformation, but their misuse is also growing. Cybercrime, such as data theft and fraud, is increasing as well. In addition, the growth of artificial intelligence and other cognitive technologies is leading to new security risks. The EU Crypto Licence initiative aims to manage these risks at both the EU level and in individual EU member states. This will make it possible to accelerate the adoption of new technologies, particularly in the realm of public services and e-commerce. The EU Crypto Licence will reduce compliance costs for businesses and increasetrust in the transformation of traditional industries through the implementation of new technologies. It will also establish proper rules for the initial supply chain of cryptographic products.
Lithuania and its position in the EU
Lithuania is a Baltic state and a member state of the European Union. Lithuania is also one of the leading crypto-friendly countries in the EU. This is evident from the report published by the Crypto-Trade Association (CTA) in March 2019. According to the report, Lithuania ranks first among EU member states in its support for the development of the blockchain and crypto industries. Being a member state of the EU, Lithuania follows the EU Crypto Licence initiative closely. However, due to its superb geopolitical location and general IT infrastructure, it is well-positioned to implement the EU Crypto Licence in practice.
Benefits of the EU Crypto Licence
Businesses will be more flexible. If a company is certified, it will be able to use different products and services from other companies in the same industry. The certification will be valid in all EU member states. This means that businesses will not have to deal with different rules and regulations in each EU member state. It will also be possible to transfer data more easily between EU member states and internationally. – Trust between businesses and consumers will increase. Consumers can be sure that products and services are safe to use. Businesses will also benefit from the flexibility described above, since they will be able to reduce their compliance costs. – New technologies will be adopted more quickly. The EU Crypto Licence will speed up the adoption of new technologies in EU member states and make interoperability easier.
The EU Crypto Licence is a regulatory framework for the adoption of cryptographic technologies in the EU. It aims to manage risks related to the misuse of these technologies while accelerating their adoption and the transformation of traditional industries. The EU Crypto Licence will reduce compliance costs for businesses and increase trust in the transformation oftraditional industries through the implementation of new technologies. It will also establish proper rules for the initial supply chain of cryptographic products. For these reasons, Lithuania is a perfect location to implement the EU Crypto Licence in practice