In 2025, Europe will enter a new era of digital regulation as five major laws come into force: the Digital Operational Resilience Act (DORA), the revised Network and Information Security Directive (NIS2), the Cyber Resilience Act (CRA), the Artificial Intelligence Act (AI Act), and the Data Act. This is not just another compliance cycle. For fintech startups, tech SMEs, and smaller telecom providers, it marks a defining moment to embed security and resilience into the business DNA.
DORA: Turning Resilience Into a Legal Obligation
Starting 17 January 2025, all financial entities regulated in the EU, including fintechs, are required to comply with DORA. This regulation mandates comprehensive ICT risk management frameworks, incident reporting within four hours, annual penetration testing, and full oversight of third-party providers.
DORA was developed in response to growing cyber threats in the financial sector, with incidents like the 2021 SolarWinds breach and the increasing sophistication of ransomware attacks. It pushes resilience from a best practice to a baseline requirement. For smaller fintechs, aligning DORA with internal operations is not only mandatory but can reduce system downtime, streamline vendor accountability, and improve investor confidence.
NIS2: Expanding the Scope and Raising the Stakes
The NIS2 Directive, which must be transposed into national law by October 2024, dramatically expands the scope of cybersecurity regulation. Any digital service provider, cloud platform, or telecom with more than 50 employees or over 10 million euros in turnover now qualifies as either an essential or important entity.
What sets NIS2 apart is its focus on governance. Senior management can be held personally liable for failure to implement adequate cybersecurity measures. Organizations must conduct regular risk assessments, ensure supply chain security, and enforce policies for business continuity and incident response.
For tech companies and challenger telcos, this represents a legal obligation to modernize cybersecurity posture, elevate board-level awareness, and move beyond reactive security spending.
CRA: Security Requirements for Smart Devices and Software
The Cyber Resilience Act targets manufacturers, importers, and distributors of connected devices and software products sold in the EU. From late 2026, organizations must manage vulnerability disclosures and deliver timely patches. By December 2027, every product with digital components will need to meet new cyber-conformity assessment rules.
This law is modeled after existing safety frameworks like the CE mark. Its purpose is to make security a core requirement at the design and development stages. For tech startups building IoT or embedded systems, adapting early will help avoid delays in product launches and ensure smoother market entry.
AI Act: Risk-Proofing Algorithmic Decision-Making
The AI Act, formally adopted in mid-2024, is the world’s first comprehensive framework for artificial intelligence. It categorizes systems by risk level and imposes stringent obligations on high-risk use cases like credit scoring, biometric identification, and fraud detection.
High-risk AI systems will need clear documentation, human oversight, data quality controls, and post-deployment monitoring. These rules will apply starting August 2026, but transparency and governance duties for general-purpose AI tools are already expected.
With public concern over opaque algorithms growing, complying with the AI Act is not just about avoiding penalties. It is an opportunity to demonstrate ethical leadership and build customer trust into the core of your AI strategy.
Data Act: Unlocking Industrial Data
From September 2025, the Data Act will give customers the right to access and share the data generated by their connected devices. This regulation introduces data portability obligations and imposes restrictions on exclusive cloud service contracts.
For companies offering embedded finance or IoT solutions, the challenge is managing industrial data separately from personal data to avoid regulatory conflicts with the GDPR. It also means rethinking API development and negotiating new data-sharing agreements that meet transparency and fairness requirements.
Building a Unified Compliance Strategy
With these five regulations entering force in rapid succession, the most efficient path forward is a consolidated, cross-regulation strategy. Instead of duplicating effort, businesses can align risk assessments, automate evidence collection, and leverage a single governance framework.
Security budgets can be optimized by tying regulatory investment to business outcomes. For example, reducing downtime, improving fraud detection, and accelerating go-to-market timelines are measurable returns that align with DORA, NIS2, and AI Act requirements.
Internal training also plays a critical role. A unified program that covers phishing threats, data ethics, and AI governance will help raise organizational awareness and reduce the chance of costly non-compliance.
Where to Begin
Start by mapping your regulatory exposure across departments. Identify which products, systems, and suppliers fall under each law. Build a compliance roadmap that prioritizes urgent deadlines, such as DORA and NIS2, while preparing for CRA and AI Act obligations over the next 24 months.
Communicate the strategic value of compliance to executive leadership. This is not just about avoiding fines. It is about strengthening your brand, improving operational resilience, and winning long-term customer trust.
Why It Matters
Cybersecurity is no longer just an IT issue. In 2025, it becomes a legal, strategic, and commercial imperative. Europe is making trust a regulatory requirement. The companies that respond with ambition and coordination will not only keep pace; they will lead.
Now is the time to act. Build the team, secure the budget, and embed resilience into your growth plans. Because in the new regulatory era, trust is more than a principle. It is your most valuable asset.