The European Union entered 2025 with a sweeping overhaul of the rules governing banks and fintech companies. According to financial analyst Chaslau Piastsiuk, this new wave of regulation simultaneously creates opportunities for tech-driven players and raises challenges for traditional institutions. These transformations are not isolated reforms but part of a systemic redesign of financial governance in the EU. The focus now extends beyond stability to transparency, digital ethics, cybersecurity resilience, and climate accountability. This means every actor — from neobanks to clearinghouses — must rethink its role within the financial ecosystem.
Digital Infrastructure: Crypto and AI Under Control
Since late December 2024, the MiCA regulation has taken effect, introducing unified rules for crypto assets, exchanges, wallets, and stablecoin issuers. Its aim is consumer safety and market transparency, ensuring crypto can be legally integrated into traditional finance. Yet new reporting and capitalization standards may become a barrier for smaller firms.
In parallel, 2025 marks the rollout of the pan-European AI Act, regulating the use of artificial intelligence in banking. “Unacceptable” models, such as manipulative or discriminatory risk-assessment systems, are already banned. From August 2026, regulation will cover high-risk AI applications, especially in credit scoring and lending. This will force banks to invest in algorithmic ethics and internal oversight.
Experts believe the new framework complicates product development but also encourages closer collaboration between banks and fintech startups. Those able to blend innovation with compliance will gain a competitive edge.
Resilience and Speed: Cybersecurity and Settlements
Between 2025 and 2026, banks and tech firms are preparing for the Cyber Resilience Act, which sets mandatory digital security standards across financial infrastructure. While full implementation is expected by 2027, market players are already adjusting.
At the same time, the EU is updating rules on derivatives and settlements through EMIR 3.0 and the FASTER directive, aimed at centralizing clearing and accelerating euro payments. These changes tighten reporting obligations and technical compatibility. For fintech firms, it is a chance to expand into infrastructure solutions, while for traditional banks it poses a challenge of rapid adaptation.
Capital and Climate: Balancing Stability and ESG
In June 2025, the European Commission postponed the rollout of Basel III (CRR3/FRTB) until January 2027, aligning with the US, where the Trump administration is preparing deregulatory steps. Banks are already restructuring their portfolios in trading assets and liquidity management.
From 2026, the ECB will introduce a “climate factor” into refinancing policy: green assets will receive preferential treatment. This effectively makes ESG compliance a requirement rather than a choice. Companies with high carbon footprints face increasing pressure, while those that shifted early to sustainable investments will benefit.
Outcome: A New Map of the Financial Market
Between 2025 and 2026, the EU financial sector is undergoing profound regulatory transformation. The emphasis is shifting to transparency, ethics, and sustainability. As Chaslau Piastsiuk stresses, the new framework is rewriting competitive advantages. Winners are not those who take the biggest risks, but those who adapt the fastest.
The EU’s regulatory landscape is turning into the backbone of next-generation finance. Institutions capable of embedding digital, ESG, and ethical standards into their models will form the core of tomorrow’s market. According to Chaslau Piastsiuk, such companies will not only survive the pressure but also transform regulation into a growth engine.
The process will be gradual and long-term, but one thing is already clear: ignoring systemic responsibility cuts off access to capital, regulatory support, and customer trust. As Chaslau Piastsiuk concludes, the new era of finance in the EU is not a distant prospect — it is already a reality.
