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ARTICLE · 15 JULY 2022

Distributed Ledger Technology: The New Regulation (EU) 2022/858.

A few days ago, Regulation 2022/858 came into force, regulating a pilot regime for market infrastructures based on the distributed ledger technology.

European UnionTechnology

A few days ago, Regulation (EU) 2022/858 came into force, regulating a pilot regime for market infrastructures based on the distributed ledger technology (DLT). The Regulation establishes and regulates a temporary pilot scheme to enable market infrastructures operating with DLT technology to trade and settle crypto-assets transactions covered by financial services legislation.

DLTs are a computer technology that enables the operation and use of 'distributed ledgers', that is a database of transactions (but this could be any information) which, instead of being stored at a central hub, is distributed over a network of computers that allow information to be stored and accessible, manageable and verifiable, in a shared manner by entities operating via the Internet. The most common type of DLT is the 'blockchain', so called because transactions are grouped into chronologically linked blocks that form a chain. This chain forms the complete register of all transactions

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