EU Legal Framework For Crypto Assets And Financial Sector Resilience: Quick Update

The EU is working on setting out the legal framework for Fintech. On a separate but connected note, the EU legislator also addresses risks carried by technological evolutions. This paper focuses on three pieces of legislation and legislation in preparation for shaping the future of financial markets.

The Pilot Regime for market infrastructure based on distributed Ledger Technology Regulation (the "EU DLT Pilot Regime")

• The EU DLT Pilot Regime provides for a temporary testing environment offering derogations from existing rules, which provides a legal framework for the trading and settlement of transactions in crypto assets that qualify as financial instruments within the meaning of MiFID II (true digital securities or security tokens).