Financial regulation in the EU what to expect in 2026

Nikita Veremeev

26.11.2025 | 6 min read

Updated: 26.11.2025

Regulation in 2026

The direction of EU financial legislation in 2026 is defined by several strategic priorities:

• Tightening control over financial markets and digital assets. European regulators (ESMA, EBA) are strengthening oversight of all types of financial instruments, including crypto assets and digital payment platforms. At COREDO we observe how the new MiCA requirements (Markets in Crypto-Assets Regulation) have already changed approaches to licensing and monitoring operations with digital assets.
• Expansion of transparency and reporting requirements. The AMLD directives and MiFID II in 2026 introduce new standards for disclosure of information about beneficiaries, transactions, and sources of funds. In practice COREDO confirms: preparing for these changes requires a review of internal policies and the implementation of automated reporting systems.
• Focus on digitization of financial services. The European market is rapidly moving to digital service channels, which is reflected in new regulations on cybersecurity (DORA) and digital identification (eIDAS 2.0). Solutions developed at COREDO for clients in the FinTech sector enable the integration of digital KYC tools and automated AML systems into daily operational activities.
• Strengthening international cooperation on the exchange of financial information. The EU is expanding participation in global data-sharing initiatives to combat financial crime and tax evasion. This leads to the need to synchronize compliance processes across different jurisdictions, which is especially relevant for COREDO clients doing business in multiple EU countries and Asia.

Impact of the EU 2026 budget on the financial sector

The EU budget for 2026 reflects funding priorities focused on innovation, support for small and medium-sized enterprises, and accelerated digitalization of financial services. According to the analysis by the European Court of Auditors, the share of investments in FinTech and startups will increase by 22% compared to 2024.

• Funding priorities: Special attention is paid to innovation support programs, the development of digital infrastructure and ESG projects. In practice, the COREDO team has implemented a number of company registration projects in the Czech Republic and Estonia, where clients gained access to grants and tax incentives thanks to proper business structuring and timely submission of applications.
• Simplifying company registration in Europe: New EU initiatives are aimed at reducing the timeframes for company registration and introducing a single digital window for submitting documents. Our experience at COREDO has shown that for clients opening a business in Slovakia or Cyprus, the registration process in 2025-2026 became more transparent and faster, while the requirements for disclosing beneficiary information have been strengthened.
• support for startups and FinTech projects: The EU’s budgetary priorities stimulate the development of the FinTech ecosystem, opening new opportunities for companies operating in digital financial services, payment solutions and cybersecurity. COREDO’s practice confirms: startups that adapt promptly to new requirements gain access to additional funding and accelerated licensing.

New rules for regulating the EU financial market

AMLD update and strengthened compliance

In 2026 the anti-money laundering legislation of the EU (AMLD VI) steps up to a new level. The list of entities subject to AML is expanding, including crypto service providers, P2P lending platforms and even certain categories of advisers. The solution developed by COREDO for clients in the United Kingdom and Estonia provides for the implementation of comprehensive KYC/AML programmes based on a risk-based approach and automated transaction monitoring.

• Tightening requirements for client due diligence and reporting: Companies are now required not only to identify but also to regularly re-verify client and beneficiary data using digital tools and external databases. At COREDO we implement solutions that allow integrating automated checks of PEPs and sanctions lists, which significantly reduces operational risks.
• Adoption of new technologies for transaction monitoring: Modern AML systems use artificial intelligence to detect anomalies and suspicious transactions. Our specialists at COREDO have supported projects implementing such systems in companies operating in the EU and Asian markets, which has helped improve compliance and reduce the likelihood of fines.

Impact of inflation and key interest rates on regulation

The economic situation in the eurozone in 2026 is characterised by moderate inflation and increased volatility of the ECB’s key rate. These factors directly affect regulatory requirements for capital, liquidity and companies’ investment activities.

• Adjustment of regulatory requirements: EU regulators are adapting requirements for financial institutions taking into account inflation and changes in interest rates. For example, at COREDO we advised clients on reviewing investment strategies and managing currency risks in the context of a rise in the ECB’s key rate.
• Impact of ECB rate changes on lending and investment conditions: Rate increases lead to more expensive borrowing and higher requirements for borrowers’ creditworthiness. For our clients, this means the need to revise financial models and implement hedging instruments.

Registration of legal entities in the EU

Changes in company registration procedures

In 2026, Registration of legal entities in the EU is becoming more technological and transparent. Simplified procedures are being introduced for small and medium-sized businesses, application review times are being reduced, and some processes are being moved to digital format.

• Simplification of the registration process: In the Czech Republic, Estonia and Slovakia company registration is now possible entirely online using digital identification and electronic signatures. The COREDO team has implemented projects under which clients launched businesses in the EU within days, minimizing bureaucratic costs.
• New requirements for documentation and verification of beneficiaries: Since 2025 all legal entities are required to disclose information about ultimate beneficiaries, which is stored in closed registers and available to regulators. COREDO’s practice shows that timely preparation of documents and proper structuring of ownership allow avoiding delays and refusals during registration.

Specifics for foreign investors

For foreign entrepreneurs and investors in 2026, additional requirements regarding directors’ residency and the company’s place of effective management remain in place. At COREDO we regularly advise clients on choosing the optimal jurisdiction taking into account tax, regulatory and operational risks.

• Residency and place-of-management requirements: In some EU countries (for example, Cyprus and Estonia) the requirement to have a local director or office remains. The solution developed by COREDO provides for appointing nominee directors and setting up a virtual office to meet formal criteria.
• Risks associated with changes in legislation: Regular updates to rules require constant monitoring and adaptation of corporate structures. COREDO’s experience confirms that asset diversification and flexibility in choosing a jurisdiction help minimize regulatory risks.
• Recommendations for choosing a jurisdiction: When choosing a country for registration it is important to consider not only tax rates but also reporting requirements, availability of licensing and the level of investment protection. At COREDO we help clients assess all parameters and select the optimal solution for international business.

The impact of sanctions and geopolitics on financial regulation

Consequences of sanctions for business

In 2026 the EU’s sanctions policy continues to have a significant impact on financial flows and deal structures. Restrictions on transactions with Russian companies are tightening, and scrutiny of the origin of funds is becoming more stringent.

• Restrictions on transactions and operations: Banks and financial institutions are required to conduct enhanced due diligence on all operations involving companies from sanctioned countries. The COREDO team has handled cases where clients had to restructure supply chains and financial flows to comply with the new requirements.
• Strengthening control over the origin of funds: In 2026 the focus shifts to analyzing sources of capital and verifying the legality of investment origins. COREDO’s solutions include implementing automated monitoring systems and preparing justifications for regulators.

Geopolitical risks and mitigation strategies

Geopolitical instability requires businesses to be flexible and ready to respond quickly to changes in the external environment.

• risk assessment for business: At COREDO we recommend conducting regular stress tests and audits of supply chains to promptly identify potential threats.
• Recommendations for diversifying assets and jurisdictions: COREDO’s experience shows that spreading assets across different countries and using multi-bank structures reduces the risk of account freezes and transaction restrictions.

How businesses can prepare for changes

Review and update internal procedures

• Audit of current compliance and AML processes: COREDO’s practice confirms that regular audits of internal procedures help identify weaknesses and correct them in a timely manner. For clients doing business in multiple jurisdictions, we develop tailored compliance programs that take into account local and European requirements.
• Updating employee training programs: Implementing new rules requires continuous professional development of staff. The COREDO team helps organize training sessions and develops interactive AML and compliance courses.

Choosing reliable partners and consultants

• selection criteria for consultants: As regulation tightens, the experience and reputation of legal and financial advisors become especially important. The solution developed by COREDO provides a comprehensive risk assessment and support at all stages: from registration to obtaining licenses and implementing AML procedures.
• The importance of international experience: For companies operating in the EU, Asia and the CIS markets, consultants’ experience in cross-border projects and knowledge of the specifics of different jurisdictions is critically important. COREDO’s experience covers project support in the Czech Republic, Estonia, Singapore, the United Kingdom and Dubai.

Using technology to meet compliance requirements

• Implementation of automated monitoring and reporting systems: Modern RegTech solutions allow automating KYC/AML processes, reducing human error and increasing the accuracy of controls. The COREDO team implements such solutions for clients handling large volumes of transactions.
• Use of digital client identification solutions: New EU rules encourage the use of digital platforms for client identification and verification. COREDO’s practice shows that integrating eIDAS and other digital identification systems speeds up onboarding processes and reduces costs.

Recommendations for entrepreneurs

Main risks and opportunities

Practical recommendations

• Regularly monitor changes in legislation. In an environment of constant regulatory change, the COREDO team recommends using specialized monitoring services and subscribing to analytical reviews from relevant EU organizations.
• Conduct internal audits and update procedures. Regular reviews and adaptation of internal policies enable timely detection and correction of non-compliance.
• Use modern technologies for compliance. Implementing automated AML systems, digital identification, and RegTech tools is becoming an integral part of effective compliance.
• Turn to experienced consultants to minimize risks. COREDO’s practice shows that professional support at all stages – from registration to obtaining licenses and implementing new procedures – significantly reduces regulatory and operational risks.

Financial regulation in the EU in 2026 will become the new standard for international business: the tightening of compliance, AML and transparency requirements is paired with the simplification of procedures for small and medium-sized businesses. Readiness for these changes, the use of modern technologies and cooperation with experienced consultants are the keys to sustainable growth and scaling the business under the new conditions.