Friday, June 13, 2025
  • About us
  • Economic Calendar
  • Price Predictions
  • Coins Alerts
  • Crypto Portfolio Tracker
  • Exclusively from Our Partners
Cryptheory
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
        • Binance Futures Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions
No Result
View All Result
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
        • Binance Futures Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions
No Result
View All Result
Cryptheory
No Result
View All Result

DLT pilot regime regulates trading with tokenized securities in the EU

by Roman B.
June 20, 2022
in Cryptheory News
Reading Time: 3 mins read

One of the three pillars of the EU Commission’s Digital Finance Pact from 2022 is the creation of a so-called “Regulatory Sandbox” for market infrastructures based on distributed ledger technologies. On June 2, 2022, the European legislator finally published the final version of its DLT Pilot Regime.

The new regulation will apply from March 23, 2023. However, the DLT Pilot Regime has nothing to do with crypto assets such as BTC or Ether. Rather, the new regulation is about creating a temporary, simplified supervisory framework for investment firms, market operators and central securities depositories who want to trade in tokenized securities within the meaning of MiFID II regulation on regulated markets.

The regulation will create easier conditions for DLT-based multilateral trading facilities (DLT MTF), securities settlement systems (DLT SS) and payment and securities settlement systems (DLT TSS). The aim of the pilot regime is to enable trading in tokenized securities (security tokens) on regulated markets in the EU.

Why is a DLT pilot regime needed for organized security token trading?

In recent years, there have been numerous issues of security tokens worldwide – and also in the EU – which, according to the applicable financial market regulations, were to be classified as transferable securities within the meaning of MiFID II. However, the tokens were regularly offered outside of regulated markets. A listing of tokenized securities on regulated stock exchanges and multilateral trading systems did not take place.

The background to this is that for a security to be admitted to trading on organized markets, it must be booked in the securities book of a central depository. The central securities depository has the task of ensuring the safe custody of the (documentary) security and the correct documentation of the transactions carried out in relation to the respective security. Both aspects are of essential importance for the functioning of professional trading on an organized market.

According to the applicable regulations, these tasks are not performed by the market operator itself, but by a trustworthy third party, the central securities depository. In the case of tokenized securities, instead of a document to be kept, there is only a number of security tokens that the respective holders can keep and transfer themselves. Depending on the underlying DLT in the individual case, the transfer of a security token can take seconds, minutes or even hours, which is impractical for organized trading.

The DLT Pilot Regime will allow securities firms and market operators to either take over the tasks of the central securities depository themselves or to temporarily relieve them of them if certain requirements are met.

In order to benefit from the privileges created by the DLT Pilot Regime, investment firms, market operators and central securities depositories will have to apply for special permits, in which they have to explain to the competent authority under national law why they should be granted simplifications, what precautions they should take have made in technical terms to ensure the level of protection for all parties involved and what transitional regulations they create in order to be able to manage the transition to proper regulation when the DLT Pilot Regime expires.

The DLT Pilot Regime will initially apply for three years. The member states will then report their experiences with the pilot regime to the European Securities and Markets Authority (ESMA) in order to create a basis for a decision on extending the validity or creating subsequent regulation.

Is dot-com-like bubble in the current crypto sector

  • Author
  • Recent Posts
Roman B.
Roman B.
I have 6 years of writing experience on several leading websites dealing with cryptocurrencies and other investments. I have been in the Web3 sector for a similar amount of time and have collaborated on several projects from NFT to P2E. My previous experiences: Business2Community.com, TradingPlatforms.com, CryptoSvet.
Roman B.
Latest posts by Roman B. (see all)
  • Stablecoin Scrutiny: From Tether’s Launch to MiCA’s Dawn, Regulators Are Watching - June 12, 2025
  • Staking: Is it Just a Fancy Ponzi Scheme? Let’s Get Real. - June 11, 2025
  • SOL’s Big F***ing Breakout: Why Solana’s About to Send You to the Moon - June 10, 2025
Tags: dltRegulations
Previous Post

BTC analysis – the price continues sideways at $ 20,000, the purchase is still risky

Next Post

Wall street bets 2.0? How the Celsius community wants to save company

Related Posts

Stablecoin Scrutiny: From Tether’s Launch to MiCA’s Dawn, Regulators Are Watching
Cryptheory News

Stablecoin Scrutiny: From Tether’s Launch to MiCA’s Dawn, Regulators Are Watching

June 12, 2025
June 15th: The Altcoin Apocalypse or Your Ticket to a Lambo? Let's F***ing See.
Cryptheory News

June 15th: The Altcoin Apocalypse or Your Ticket to a Lambo? Let’s F***ing See.

June 11, 2025
SOL's Big F***ing Breakout: Why Solana's About to Send You to the Moon
Cryptheory News

SOL’s Big F***ing Breakout: Why Solana’s About to Send You to the Moon

June 10, 2025
Crypto Trading Tips for June 5, 2025: Navigating the Binance Spot Market
Cryptheory News

Crypto Trading Tips for June 5, 2025: Navigating the Binance Spot Market

June 5, 2025
Spot Market Flexes and Derivatives Cry in the Corner: How Does It Look On-Chain?
Cryptheory News

Spot Market Flexes and Derivatives Cry in the Corner: How Does It Look On-Chain?

May 15, 2025
Ethereum is Waking Up: What On-Chain Data Really Says
Analysis

Ethereum is Waking Up: What On-Chain Data Really Says

May 14, 2025
EU Wants to Track Your Crypto Like a Hawk – and They’re Not Even Sorry
Cryptheory News

EU Wants to Track Your Crypto Like a Hawk – and They’re Not Even Sorry

May 9, 2025
Recession Incoming? Experts Can’t Agree If We’re Screwed or Just Slightly F***ed
Cryptheory News

Recession Incoming? Experts Can’t Agree If We’re Screwed or Just Slightly F***ed

May 9, 2025
Bitcoin Gets Freaky: $2.2B Futures Surge and a Whole Lotta Bullish Mojo
Cryptheory News

Bitcoin Gets Freaky: $2.2B Futures Surge and a Whole Lotta Bullish Mojo

May 1, 2025
Please login to join discussion
Track all markets on TradingView
Score: 0
Game Over

Popular

How to Trade Meme Coins in 2025: A No-BS Guide for Degens and Smart Investors Alike

How to Trade Meme Coins in 2025: A No-BS Guide for Degens and Smart Investors Alike

June 9, 2025
Trading tips for May 14, 2025

Trading tips for May 14, 2025

May 14, 2025
The Hottest Female Characters in PC Games: A Deep Dive into Digital Desirability

The Hottest Female Characters in PC Games: A Deep Dive into Digital Desirability

June 5, 2025
Trading Signals for May 13, 2025: Altcoins in the Spotlight

Trading Signals for May 13, 2025: Altcoins in the Spotlight

May 13, 2025
June 15th: The Altcoin Apocalypse or Your Ticket to a Lambo? Let's F***ing See.

June 15th: The Altcoin Apocalypse or Your Ticket to a Lambo? Let’s F***ing See.

June 11, 2025
Staking: Is it Just a Fancy Ponzi Scheme? Let's Get Real.

Staking: Is it Just a Fancy Ponzi Scheme? Let’s Get Real.

June 11, 2025
Ethereum Is Just a Pricier Solana – Let the Maxis Rage All They Want

Ethereum Is Just a Pricier Solana – Let the Maxis Rage All They Want

May 14, 2025
Ethereum is Waking Up: What On-Chain Data Really Says

Ethereum is Waking Up: What On-Chain Data Really Says

May 14, 2025
Bitcoin Price Analysis & Trading Tips – June 9, 2025

Bitcoin Price Analysis & Trading Tips – June 9, 2025

June 9, 2025
Who Really Makes Bank on Memecoins – And Why It Ain't You, You Beautiful Degenerate

Who Really Makes Bank on Memecoins – And Why It Ain’t You, You Beautiful Degenerate

June 4, 2025

⭐ What Type of Crypto Investor Are You? (v2)

1. How do you DYOR (Do Your Own Research)?

2. Your first reaction to a 10x pump?

3. What’s your opinion on memecoins?

4. Where do you stake your crypto?

5. What’s your exit strategy?

6. How do you pick your next investment?

7. Favorite kind of airdrop?

8. What’s your approach to NFTs?

9. How do you store your crypto?

10. What's your long-term crypto goal?

Crypto News

Bitcoin

Ethereum

Altcoins

Cryptocurrency

Platforms for Copy Trading

Platforms for Grid Trading

Glossary of trading and crypto terms

Crypto Portfolio Tracker

 

Cryptheory Labs Projects

Guest Post for Free

On our website, you can share your opinions and insights. This feature is reserved for non-promotional articles. We are already working on a system for donations and rewarding every author.

This website is here for those of you who want to be at the forefront of innovation and new technologies like Bitcoin. But first, we need to tackle the challenges and survive in the unforgiving world of crypto assets. THIS IS CRYPTHEORY!

Follow Us

  • Terms Of Use
  • Privacy Policy
  • About us
  • Contact us

© 2024 Cryptheory - F**k the forex, we want gains!

Shiba Inu loading
No Result
View All Result
  • Cryptocurrency List
  • Cryptocurrency
    • Cryptocurrency Exchanges
      • Top exchanges for trading Bitcoin derivatives
      • How to buy bitcoin without KYC
      • How to Trade Bitcoin – best platforms
      • Best platforms to buy Bitcoin by debit or credit card
      • Platforms for Grid Trading
      • BYDFi: Review and Guide
      • BingX: Review and Guide
      • Kraken: Review and Guide
      • Bybit: Review and Guide
      • Bitpanda: Review and Guide
      • Phemex: Review and Guide
      • Huobi: Quick Guide
      • Binance: Review and Guide
    • Bitcoin
    • Tether
    • XRP
    • Dogecoin
    • Avalanche
    • Stellar
    • The Open Network
  • crypto news
  • Crypto Exchanges Info
  • Analysis
  • Attractions

© 2024 Cryptheory - F**k the forex, we want gains!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.