EMEA Regulation Roundup: European Commission Adopts Delegated Act on Cybersecurity; UAE to Merge All Government’s Digital Payment Systems

In recent top Europe, the Middle East and Africa (EMEA) news, the European Commission has announced the adoption of the Delegated Act on Cybersecurity for the Radio Equipment Directive (RED), aimed at ensuring a greater level of cybersecurity, personal data protection and privacy for connected devices used within the European market.

In addition to repairing vulnerabilities in wireless devices to improve network resilience, the European Cybersecurity Organisation, in an announcement, mentioned two other benefits EU citizens will get from RED and the Delegated Act: developing additional data regulations to protect citizens’ privacy and reducing the risk of monetary fraud.

“The RED Delegated Act participates in the broader EU-wide effort to build and strengthen the European Cybersecurity Framework with the inclusion of the single market,” the announcement also said, adding that as part of the EU Cybersecurity Strategy, the act will “create the foundations for regulations on IoTs and wireless devices which have been sectors that have been a blind spot for the EU so far.”

Meanwhile, the “regulatory nursery” which was proposed by the U.K.’s Financial Conduct Authority (FCA) earlier this year is soon to go live, according to multiple reports. The initiative is aimed at helping to equip new U.K. FinTech startups during their infancy, while also boosting strong regulation in the sector.

Through the program, FinTechs in the U.K. will have the opportunity to participate in the FCA regulatory sandbox year-round, instead of being limited to a cohort basis only.

In the Middle East, The Bitcoin Fund, which is the region’s first digital asset-based fund, has received approval from the Dubai Financial Services Authority (DFSA) for its at-the-market (ATM) equity program, which will allow the listing of up to $200 million worth of units on Nasdaq Dubai to meet the growing demand from regional institutional investors.

Read also: Mixed Reactions to Rise in Cryptocurrency Use Across the Middle East

The UAE’s Ministry of Finance and Central Bank (CBUAE) have also signed a memorandum of understanding (MoU) that will see to the transfer of operations relating to the country’s e-Dirham payment platform to the CBUAE, as part of efforts to merge all the government’s digital payment systems on one platform.

In Africa, one of its largest economies, South Africa, recently introduced stricter rules for cryptocurrency traders. Johannesburg-based Standard Bank, Africa’s biggest lender by assets, issued account closure notices to cryptocurrency trading platforms that offer arbitrage services, according to reports.

See also: South African Regulator FSCA Issues Warning on Binance

As another example of the acceleration in cryptocurrency regulation due to increasing fraud, pension funds in South Africa will be banned from investing in cryptocurrencies “directly or indirectly” under a proposed law, according to a recent statement by the government.

The proposed rule would replace existing legislation that gives portfolio managers permission to invest up to 2.5% of funds in cryptocurrency.