The EU DLT Pilot Regime

Did you know that the EU DLT Pilot Regime, has an implementation date of 23 March 2023? In one word, today?

It represents a significant step forward in the use of distributed ledger technology (DLT) in the European financial services sector.

➡ The DLT Pilot Regime provides authorization to Multilateral Trading Facilities (MTFs) and Central Securities Depositaries (CSDs) to operate DLT financial market infrastructure.
➡ MTFs and CSDs can be granted temporary exemptions, for a period of up to six years, under the following financial services legislation where such legislation potentially constrains the use of DLT:

✔ Markets in Financial Instruments Regulation (#MiFIR);
✔ Markets in Financial Instruments Directive II (#MiFID II); and/or
✔ Central Securities Depositories Regulation (CSDR).

As part of the application process, DLT MIs can request limited exemptions from specific requirements in the legislation listed above, provided they comply with the conditions attached to those exemptions and compensatory measures requested by the relevant national competent authority (NCA).

➡ The European Securities and Markets Authority (ESMA) published on 15 December 2022 the Guidelines on standard forms, formats, and templates to apply for permission to operate a DLT Market Infrastructure (Guidelines).
➡ New market entrants and incumbent market participants can immediately start preparing their applications to operate DLT market infrastructures under the DLT Pilot Regime.


DR. Diana MILE

Diana is the founder of Mile & Partners Law Office, a specialized law firm in technology and innovation. Diana’s main focus is on Business Law, Blockchain, and FinTech. She is vastly experienced in global crypto regulation matters and occasionally speaks at blockchain and crypto-related conferences. Mile & Partners helped launch several start-ups, and Diana supported numerous projects of Legal Token Design. She participated as a guest lecturer in blockchain-related fields and is part of the crypto regulation working group.

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