The new European regime for market infrastructures based on Distributed Ledger Technology («DLT»)
On June 2nd, Regulation (EU) 2022/858 of the European Parliament and of the Council of 30 May 2022 on a pilot regime for market infrastructures based on distributed ledger technology (the «DLT Pilot Regime») was published in the Official Journal of the European Union, which aims to enable the development of crypto-assets that qualify as financial instruments under European financial services legislation, and the development of DLT of which blockchain technology is an example.
The DLT Pilot Regime allows certain DLT market infrastructures (DLT multilateral trading facility, DLT settlement system or DLT trading and settlement system) to be temporarily exempted from some specific requirements of existing European financial services legislation upon obtaining an authorisation from the national competent authority.
Nevertheless, the DLT Pilot Regime imposes additional requirements on DLT market infrastructures and their operators when compared to traditional market infrastructures, such asthe need for the operators of DLT market infrastructures to establish or document rules on the functioning of the DLT used. Most of the provisions of this new regime apply from March 23, 2023.
Paulo Câmara
Email: pc@servulo.com
Andreea Babicean
Email: aba@servulo.com