Today in TechREG: EBA Recommends Standard API for Open Banking

Today in TechREG, the European Banking Authority (EBA) recommended the adoption of a standard API across Europe to boost the adoption of open banking.

Also, EU negotiators will continue discussing this week the scope of crypto regulation. Non-fungible tokens (NFTs) and anti-money laundering provisions may be at the center of the debate.

EBA Recommends a Standard API for Open Banking in New PSD3

The European Banking Authority (EBA) published on Thursday (June 23) an opinion in response to the European Commission’s call for advice on the upcoming review of the Payment Services Directive (PDS2). The opinion, far from being a mere reply to fulfill its statutory duties, contains more than 200 proposals that, in the regulators’ view, “would contribute to the development of the single EU retail payment market.”

Perhaps the most innovative yet challenging proposal from the EBA discusses fostering the implementation of open banking and open finance provisions. The banking regulator is asking the Commission to explore the possibility of having a common application programming interface (API) standard across the EU to be developed by the industry.

Federal Reserve Announces Final Timeline for New Fedwire Funds Message Format

The Federal Reserve Board on Monday (June 27) announced the final timeline and implementation details for the adoption of a new Fedwire Funds Service message format. The board confirmed that the new message format, ISO 20022, will be adopted on a single day as proposed last year, rather than in three separate phases. The board also provided a new timeline for implementation based on review of public comments, with the new message format to be adopted on March 10, 2025. In addition, the board provided further information regarding customer testing and other implementation details.

EU Lawmakers to Discuss Fate of NFT, Private Wallets in Crypto Regulation

This week, members of the EU Parliament and the European Commission, as well as representatives of the member states, will continue negotiations regarding the scope of the Markets in Crypto Assets regulation (MiCA), according to CoinDesk.

Talks this week are likely to focus on two issues, according to CoinDesk: how to treat non-fungible tokens (NFTs) and the private use of unhosted wallets.

EU FinTechs, Central Bank of Ireland Take on IBAN Discrimination

The Central Bank of Ireland recently announced that it was writing to all Regulated Financial Service Providers in the country, as well as a range of business and professional representative bodies, to remind firms of their obligations to prevent IBAN discrimination.

Russian Lawmakers Help Issuers of Digital Assets With Tax Break Approval

Russian lawmakers on Tuesday (June 28) approved a draft law that would potentially exempt issuers of digital assets and cryptocurrencies from value-added tax, Reuters reported.

The draft law, approved by State Duma members in the second and third readings on Tuesday, envisages exemptions on value-added tax for issuers of digital assets and information systems operators involved in their issue. It also establishes tax rates on income earned from the sale of digital assets.