digital transition, the regulations are intended to nurture innovation while ensuring that it is subject to the “ same activities, same risks, same rules ” principle. in the case of defi, this principle is applied via a square of guarantees designed to ensure equal security, compliance, responsibility and accessibility relative to the situation for traditional financial services. [ slide 6 ] accordingly, the banque de france supports the adoption of several key pieces of legislation that are currently being discussed by the european parliament and the council. first, the draft digital operational resilience act ( dora ) is set to improve the financial sector ’ s digital operational resilience by harmonising the applicable requirements and by making certain critical it services providers, including cloud services providers, subject to direct regulation. second, in 2020, the european commission presented a proposal for a markets in crypto - assets ( mica ) regulation that we hope to see adopted during france ’ s presidency of the eu council. these two pieces of legislation will usefully supplement the second payment services directive adopted in 2015, which paved the way for the creation of payment institutions, i. e. regulated entities that do not have to be registered as credit institutions. as you are well aware, however, the challenges linked to better regulation of digital finance are not confined to europe. globally, several major initiatives are under way. because of time constraints, i will mention only two. first, the financial action task force, an intergovernmental body that works to prevent money laundering and terrorist financing, recently extended the scope of transfer transparency requirements, also known as the “ travel rule ”, to include virtual assets. second, the basel committee on banking supervision is currently doing work on the question of setting prudential requirements for banks ’ crypto - asset holdings. in a fast - changing world, there are a number of issues that regulatory authorities have yet to get to grips with. for example, we need to develop an adequate approach to regulate bigtech activity in finance. i would now like to talk about regulatory responses in the area of sustainable finance. the eu leads the field in this regard [ slide 6 ]. a major step forward was taken with the adoption on 18 june 2020 of the european taxonomy regulation, which seeks to promote sustainable investment through a common classification of economic activities ( not of financing or businesses ). furthermore, several european reforms currently under discussion have the same end goal of increasing transparency and data disclosure in order to improve market discipline and ensure that capital is allocated

banks to climate - related risks is now well established, in part thanks to work by the network of central banks and supervisors for greening the financial system, or ngfs. in particular, banks may be exposed to physical risks and transition risks. physical risks stem from the rise of extreme weather events such as droughts, flooding and storms. these events can weaken the businesses and households to which banks are exposed, potentially generating losses. transition risks are related to the measures that are taken by public authorities or the private sector to support the move to a low - carbon production model, which oblige economic participants to restructure their activities and cause some assets to become impaired. coal mines, for instance, are destined to become stranded assets. since transition risks materialise over a longer time horizon and are less visible, they are challenging to identify and model. in addition to climate risk, the financial system is also affected by the risks linked to ecosystem disruption, such as biodiversity loss. the quantitative measurement of these risks over time represents a major challenge. whereas standards of supervision have traditionally been based on statistical analyses of historical, backward - looking data, there are few, if any, past climate risk events that resemble what scientists are predicting for the 21st century. this is why, to borrow an image from banque de france governor francois villeroy de galhau, the snapshot of risks that i just provided is being supplemented by a video, as it were, of the long - term risks, created through forward - looking climate stress tests. in 2020, france ’ s prudential supervision and resolution authority, the acpr, conducted a pilot climate exercise to measure losses by 2050 connected with the climate transition to net zero by that date. the assessment found that french banks are “ moderately ” exposed to climate risk. however, our analysis points to a greater probability of default for business loans in the event of a disorderly transition, albeit with variations across sectors, calling for us to work together to organise the financial system ’ s climate transition [ slide 3 ]. the ecb, meanwhile, is assessing banks ’ resilience to climate - related risk at the level of the euro area for the first time through a climate stress test that kicked off in late january. the findings are to be published in july. the ecb also recently conducted supplementary work. after assessing reporting requirements, it found that, overall, european banks have significant room for improvement if they are to meet in full its expectations on