Company: BCDRF
Filing Date: 2025-03-03
Form Type: 6-K
Source: 0000891478-25-000057
Chunk: 18

Company: Banco Santander, S.A.
Filing Date: 2025-03-03
Form: 6-K
Chunk 18
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 asset-reference tokens and e-money tokens which were applicable from June 2024.

Due to the increase in international crypto assets activities, significant adjustments have also been made to the prudential framework. Following the publication of the Basel standards, the European regulation needs to be adapted to incorporate them. Therefore, the CRR3 includes the mandate to the Commission to issue a legislative proposal by 30th June 2025 that incorporates international standards on the prudential regulation applicable in Europe. Until that framework is fully integrated, the CRR3 has set out a transitional framework for calculating own funds that will be applied until the Basel standards are incorporated. The implementation of this temporary treatment is pending more comprehensive elaboration in a technical standard to be issued by the EBA.

Apart from the treatment of exposures to this type of assets, the regulation also covers obligations concerning reporting to the competent authorities and disclosure to preserve transparency and market discipline. All these provisions have to be implemented before the enforcement date of the CRR3, and compliance is obligatory from 9 July 2024.

#### Central Bank Digital Currencies (CBDCs)
The preparation of a potential digital euro continued during 2024 and will go on until October 2025. The following milestones are included: finalisation of the operating rules for the digital euro framework and selection of suppliers that would be able to develop the necessary platform, the infrastructure and also multiple trials aimed at introducing a digital euro in the future. The decision, as to whether to issue a digital euro, will be assessed in November 2025. A regulation from 2023 is currently proposed by the European Commission which would permit and regulate the launch of the digital euro.

#### Artificial Intelligence
The European Artificial Intelligence (AI) Act, which regulates the use of AI technology in both the public and private sectors, was approved in 2024. It will be implemented two years after its entry into force, i.e. 2 August 2026, except for the following specific provisions, which will be implemented early: prohibition of AI systems that pose unacceptable risks, 6 months after approval; code of practice, 9 months after approval; governance and applications relating to general-purpose AI, 12 months after approval and, finally, high-risk AI systems must comply with the requirements and obligations 36 months after entry into force.

#### Operational resilience
The Digital Operational Resilience Act (DORA), which is in force but will not be implemented until 17 January 2025, establishes a risk management framework for technology service