DLT Pilot Regime – Blockchain Trading Of Securitised Crypto Assets

Last year the EU finalised its pilot regime for market infrastructures based on distributed ledger technology (DLT). The DLT Pilot Regime introduces an EU regulatory sandbox and harmonised requirements for market participants, such as central securities depositories or market operators, that wish to establish a DLT market infrastructure. The DLT Pilot Regime will be applicable from 23 March 2023 for a maximum of six years.

The overall aim of the new framework is to help establish market/trading systems based on the distributed ledger technology (and without centralised intermediaries) for crypto assets that qualify as financial instruments (other crypto assets will be subject to the MiCA Regulation). Through the DLT Pilot Regime the legislator, regulators and market participants should be able to build the necessary experience and evidence upon which a permanent EU regulatory regime could be based.