Legislative Overview, Regulation, Taxation
Legislative overview 2025: consumer protection, taxation, and new regulatory frameworks
As we have mentioned in previous publications, the European financial environment is undergoing structural change.
EU institutions are promoting an ambitious regulatory agenda aimed at strengthening the competitiveness, transparency, and sustainability of the financial system.
Initiatives such as the Listing Act, the Minority Investment Strategy, DAC 8, and the new criteria on data protection and anti-money laundering are marking a turning point in the way both traditional institutions and new technology firms operate.
Below, we will describe in greater detail some of the main reforms that will shape the regulatory framework in the coming years.
Boost to capital markets
In the coming years, the European Union has set out to revitalize capital markets as a key means of mobilizing savings for productive investment. A key element of this strategy is the Savings and Investment Union (SIU), launched by the Commission on March 19 this year.
This strategy aims to channel the approximately €10 trillion in bank deposits into the capital market, giving savers broader and lower-cost participation in productive investments, while strengthening European financial integration.
One of the most relevant projects is the Listing Act, which seeks to facilitate the entry of SMEs into the stock market by removing obstacles that have hitherto hindered their access to the market.
Work is also underway on the revision of MiFID II and MiFIR, with the aim of reducing regulatory complexity without compromising transparency or investor protection. Added to this are changes to the UCITS asset regime and new long-term investment opportunities through ELTIF funds, which are gaining prominence as instruments for channeling capital into infrastructure and emerging companies.
The aim is to build a more competitive and accessible European capital market that is prepared to face the challenges of the future.
Protection of retailers and consumers
Alongside market momentum, financial consumer protection, especially for retail consumers, has become a central focus of regulatory debate.
The Retail Investment Strategy (RIS) is a firm step in this direction. It seeks to improve transparency, align incentives between providers and customers, and ensure that any citizen, with or without experience, can understand the products they are purchasing.
Other initiatives include the future Financial Customer Protection Act, which aims to establish more accessible dispute resolution mechanisms, and the revision of directives such as those on remote financial services and consumer credit, which are being adapted to the digital context.
We believe that these reforms will help build greater confidence in the system and empower consumers in an increasingly automated environment.
PBCFT (Prevention of money laundering and terrorist financing)
The prevention of money laundering and terrorist financing will remain a priority in 2025.
Among the measures planned are the updating of the European Banking Authority (EBA) guidelines and a review of the Central Register of Beneficial Ownership, with the aim of facilitating access to information on the ultimate beneficial owners of legal entities.
In addition, controls on cross-border transfers will be tightened, especially those linked to high-risk jurisdictions. Financial institutions will have to strengthen their compliance mechanisms by incorporating more advanced analysis and automated monitoring tools.
Data protection and AEPD criteria
In terms of data protection, no major reform of the GDPR is expected, but there will be greater emphasis on its rigorous and consistent application. In Spain, the AEPD continues to set the pace with practical initiatives. A good example is ValidaCripto, a tool that allows organizations to verify whether their encryption systems comply with the required standards.
Beyond penalties, the focus is on prevention and providing entities with the means to comply properly from the outset, especially in financial environments where data processing is continuous and highly sensitive.
DAC 8, electronic invoicing, and global minimum tax
From a tax perspective, the legislative package that includes DAC 8 will bring new reporting obligations for crypto asset operators, marking an important step toward bringing these assets into line with other traditional financial products.
On the other hand, the mandatory use of electronic invoicing aims to improve tax control, facilitate the traceability of transactions, and reduce fraud. In addition, the discussion on the global minimum tax for companies remains on the table, in line with the OECD agreement, which would mean a structural change in international corporate taxation.
Amid all these changes, green bonds continue to position themselves as one of the main tools for financing environmentally sustainable projects. The EU is moving forward in defining clearer and more demanding standards, which will prevent greenwashing and increase investor confidence in these instruments.
Although there is still some way to go, everything indicates that this type of financing will continue to gain ground in the coming years.
ARENA's commitment to regulatory innovation
At ARENA, we firmly believe that adapting to the new regulatory environment is not only an obligation, but also an opportunity. That is why we have been integrating these changes across the board in our solutions, from regulatory compliance automation to the development of tools geared towards sustainability and consumer protection.
Every day, we strive to build a technological ecosystem aligned with the values of transparency, inclusion, and responsible innovation that the future of the European financial system demands.
