The European Securities and Markets Agency (ESMA) recently cleared the next phase of a new experimental crypto project. It is a program that aims to test the transaction of tokenized securities within a controlled and regulated environment. The project is launched in relation to the pilot scheme which will soon come into effect. Find out more on the subject.
A pilot regime on crypto market infrastructures
The EU is preparing to bring into force a regulation on a pilot DLT scheme. This regime concerns market infrastructures based on blockchain technology. The European Union published the text in the Official Journal on June 2, 2022. It will come into force on March 23, 2023. In this context, ESMA is planning a project to test the trading of tokenized securities in a more reliable environment. This will involve operating a DLT (market infrastructure) under conditions similar to what the EU pilot scheme framework will impose.
The European regulator has invited traditional financial institutions and new financial players to participate in the project. Applications from potential participants are now awaited. This, then that the crypto community is already getting impatient as the launch approaches. Furthermore, ESMA has recently stated that many players have expressed a strong interest in participating in this experimental project.
The recent report on the subject reveals that “the on-chain transaction will not necessarily occur at the same time as the settlement of the transaction“. This suggests that the experimental project will not necessarily be launched at the same time as the implementation of the regulations.
ESMA promised that it would guide the actors who intend to participate in the experimental project on tokenized securities. She also said that it will not be necessary to change regulations on transparency and data reporting to carry out the said project.
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