Proposal for a Regulation on a pilot regime for market infrastructures based on distributed ledger technology

Author (Corporate)
Series Details COM (2020) 594
Publication Date 24/09/2020
Content Type


Legislative initiative tabled by the European Commission on 24 September 2020, introducing a pilot regime for Distributed Ledger Technology (DLT) market infrastructures.

Further information:

A Distributed Ledger is a consensus of replicated, shared, and synchronised digital data geographically spread across multiple sites, countries, or institutions. This proposal was put forward as part of the so-called Digital Finance Package, alongside a Communication setting out a new strategy for digital finance. One of the strategy’s identified priority areas is ensuring that the European Union's financial services regulatory framework is innovation-friendly and does not pose obstacles to the application of new technologies.

The initiative aims to enable participants to operate a DLT market infrastructure by establishing clear and unform operating requirements.  The overall objective is to remove regulatory hurdles to the issuance, trading and post-trading of financial instruments in crypto-asset form and for regulators to gain experience in the application of DLT in market infrastructures. The pilot regime establishes the conditions for acquiring permission to operate a DLT market infrastructure, sets limitations on the transferable securities that can be admitted to trading, and frames the cooperation between the DLT market infrastructure, competent authorities and the European Securities and Markets Authority. Permission to operate the pilot is temporary and is set to be periodically reviewed by supervisors. It is to be subject to strict requirements, so that market operators who no longer meet the relevant criteria can no longer run the pilot.

Source Link
Related Links
European Commission: Publications: Digital Finance Package
EUR-Lex: SWD(2020)201: Staff Working Document accompanying the Proposal - Impact Assessment
EUR-Lex: SWD(2020)202: Staff Working Document accompanying the Proposal - Executive Summary of the Impact Assessment

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