Eu concludes DLT pilot regime

Monday 20 June 2022 14:53 CET | News

The EU’s pilot regime for market infrastructures based on distributed ledger technology has now been concluded.

The regime will provide flexibility for eligible firms to experiment with DLT-based trading facilities and settlement systems for financial instruments, including the option of operating a combined trading and settlement facility. There are limitations to consider, however, including uncertainty as to whether infrastructure developed under the regime will be permitted to live on long-term. Meanwhile, the UK is working on developing its own financial market infrastructure sandbox.

The regime is effectively a regulatory sandbox. Broadly, the idea is to facilitate the development of secondary market infrastructure for digital securities (including both tokenised securities and digitally native securities), and to help inform EU regulators as to what (if any) permanent changes to the regulatory framework would be beneficial.

Applications can be submitted from 23 March 2023. Permissions will be granted for a period of up to six years (and will only be valid during the life of the pilot regime). By March 2026, the European Securities and Markets Authority (ESMA) will report on the success of the regime and recommend next steps (including whether to make any elements of the pilot regime permanent, by amending the general regulatory framework).

More: Link

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Keywords: regulation, DLT, regulatory sandbox, trade finance
Categories: DeFi & Crypto & Web3
Countries: Europe
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DeFi & Crypto & Web3

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