This should help support a proportional approach to regulation, as part of the Future Regulatory Framework proposals set out by the Treasury.18 This new framework would make it easier for our regulation to adapt to innovation, and deliver a more tailored regime for firms, responding dynamically to new challenges. We are also looking forward to working with the FCA as their Scalebox develops. We continue to work closely more generally with them on the supervisory approach to new and growing dual-regulated firms. 14  https://www.bankofengland.co.uk/prudential-regulation/publication/2019/outsourcing-and-third-party-risk-management https://www.bankofengland.co.uk/speech/2020/sarah-breeden-climbing-mountains-safely 16 https://www.bankofengland.co.uk/prudential-regulation/publication/2020/new-and-growing-banks 17 https://www.bankofengland.co.uk/speech/2020/sam-woods-city-banquet 18 https://www.gov.uk/government/consultations/future-regulatory-framework-frf-review-consultation 15  6  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  6  Cross-authority and international collaboration  The Bank is just one of many institutions with a role to play in the evolving fintech landscape. And we regularly work with other public authorities as we fulfil our role, including the FCA, the Treasury, and Payments and Competition authorities. A number of institutions have put out proposals and consultations on how the UK’s regulatory framework should adapt to support financial innovation. The Payments Landscape Review, led by the Treasury, has gathered evidence across the breadth of the payments sector to understand the rapid technological developments and what that might mean for regulation. 19 The Treasury has also launched a consultation on the regulation of stablecoins,20 and the FPC has set out its expectations for stablecoin-based payment chains.21 And Parliament has launched an inquiry into the Future of Finance in the UK.

The evolving cyber threat landscape in Europe Besides the undeniable advantages of information and communication technology, the increase in users and data on digital platforms, in cloud computing and across networks has also created greater opportunities for cybercrime. There are a variety of agents involved: criminals, hacktivists or nation states. They may have different motives: financial gain, espionage, disruption and destabilisation. But what they all have in common is that they are steadily increasing their level of sophistication and exploring ways of attacking. A sound operational risk management and IT security framework are the first line of defence. But resilience to cyberattacks means more than that. Unlike critical failures, the likelihood of cyberattacks cannot be mitigated. A paradigm shift is necessary. We have to accept that cyberattacks are inevitable and that attackers are persistent. Consequently, we have to establish how – in case of persistent attacks – we prioritise our operations and resources, protect our key assets and restore functionalities. Cyber resilience goes beyond technology, it also encompasses governance, company culture and business processes. Given the extensive interlinkages and interdependencies in the financial system, it is obvious that 1/2  BIS central bankers' speeches  markets’ overall cyber resilience depends not only on the resilience of each individual market actor but also on that of interconnected market infrastructures, participants and service providers.