{"id":117718,"date":"2025-04-09T22:13:02","date_gmt":"2025-04-09T22:13:02","guid":{"rendered":"https:\/\/teknomers.com\/en\/french-and-italian-authorities-present-dlt-proposals-to-the-european-commission\/"},"modified":"2025-04-09T22:13:02","modified_gmt":"2025-04-09T22:13:02","slug":"french-and-italian-authorities-present-dlt-proposals-to-the-european-commission","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/french-and-italian-authorities-present-dlt-proposals-to-the-european-commission\/","title":{"rendered":"French and Italian Authorities Present DLT Proposals to the European Commission"},"content":{"rendered":"

What are the proposed changes to the regulatory framework for distributed ledger technology (DLT) mentioned in the article? How might these changes influence the wider adoption of blockchain in European financial markets? What were the shortcomings of the EU’s Pilot Regime that prompted these new recommendations? How do the AMF and CONSOB plan to encourage experimentation within DLT applications? What impact could interoperability between DLT and traditional financial systems have on market efficiency?<\/strong><\/p>\n

The French Autorit\u00e9 des March\u00e9s Financiers (AMF) and the Italian Commissione Nazionale per le Societ\u00e0 e la Borsa (CONSOB) jointly submitted recommendations to the European Commission on Wednesday, proposing adjustments to how blockchain and distributed ledger technology (DLT) is regulated across European financial markets. The regulators called for a more flexible and efficient regulatory framework that would support the integration of DLT into existing market infrastructure and encourage broader experimentation. <\/p>\n

AMF and CONSOB Advocate for a Competitive Blockchain Framework in European Finance<\/h3>\n

The recommendations followed the underwhelming performance of the EU\u2019s Pilot Regime, introduced in March 2023 to guide the use of DLT in financial market infrastructure. The program was intended to provide a legal environment for testing blockchain-based systems for trading, settlement, and custody of financial instruments. Despite rising interest in DLT, participation in the Pilot Regime remained low, with limited adoption and missed objectives.<\/p>\n

The AMF and CONSOB have urged the European Commission and co-legislators to adjust the framework to better support market testing and development. \u201cAt a time when Europe wishes to develop its financial markets to meet its financing needs with the Savings and Investment Union, it is clearly a priority that Europe puts in place a competitive framework to encourage innovation, and market testing of distributed ledger technology, in order to better measure the potential benefits,\u201d said Marie-Anne Barbat-Layani, AMF Chair.<\/p>\n

The regulators outlined three key areas for improvement. First, they call for a more flexible regulatory framework that encourages experimentation by offering proportionality based on the size and nature of the projects. They believe this would lower barriers for firms seeking to experiment with DLT applications. They also emphasized the importance of enhancing the role of the European Securities and Markets Authority (ESMA) to ensure consistent implementation across the EU.<\/p>\n

Second, the AMF and CONSOB proposed broadening the scope of the Pilot Regime by raising eligibility and capitalisation limits to accommodate larger-scale projects. This would allow for the inclusion of a wider range of financial products, including structured bonds and derivatives. They also recommend extending the duration of the Pilot Regime to provide greater long-term visibility for investors. <\/p>\n

Finally, the regulators emphasized the importance of developing interoperability between DLT infrastructure and traditional financial systems. They argue that establishing common standards at the European level would simplify processes for all stakeholders and promote greater market awareness of DLT\u2019s potential.<\/p>\n

DLT Adoption Gains Ground in Switzerland<\/h3>\n

While AMF and CONSOB push for regulatory improvements, other European institutions are already advancing DLT initiatives at the national level. In March 2025, the Boerse Stuttgart Group launched the first Swiss market for trading digital securities via blockchain. BX Digital, its subsidiary, has received authorization from FINMA to operate a DLT trading system. The platform supports secondary market trading of tokenized assets such as stocks, bonds, and funds on Ethereum. Integration with the Swiss payment infrastructure is expected to attract further participation from banks and financial institutions, driving the tokenization of traditional assets. <\/p>\n

As the European Commission considers these proposals, the outcome could influence how blockchain and DLT are adopted across the EU. If changes are made, they could provide a clearer path for future experimentation and integration of blockchain in Europe\u2019s financial ecosystem. <\/p>\n

Frequently Asked Questions (FAQs)<\/h3>\n

What does interoperability between DLT and traditional systems mean for investors?<\/strong>
\nInteroperability between these technologies simplifies access to digital assets while ensuring seamless integration with existing financial infrastructures, which will ultimately improve market efficiency.<\/p>\n

What role does ESMA play in advancing DLT adoption?<\/strong>
\nStrengthening ESMA\u2019s oversight ensures consistency across EU markets, creating a unified framework that supports large-scale blockchain projects. <\/p>\n

The post French and Italian Regulators Submit DLT Recommendations to European Commission appeared first on Cryptonews.<\/p>\n

French and Italian Regulators Submit DLT Recommendations to European Commission<\/h3>\n

In a pivotal moment for the European financial landscape, French and Italian regulators have submitted a set of recommendations to the European Commission concerning the regulation of Distributed Ledger Technology (DLT). As the pervasive influence of blockchain technology continues to transform various sectors, the necessity for a cohesive, robust regulatory framework has gained prominence among member states. The joint initiative from these two countries reflects a growing recognition of DLT’s potential to revolutionize financial services and beyond, while ensuring that risks are managed prudently.<\/p>\n

Understanding DLT: A Crucial Element of Modern Finance<\/h4>\n

Before delving into the specifics of the recommendations, it’s essential to understand what Distributed Ledger Technology entails. DLT encompasses a range of technologies that allow data to be stored across multiple locations, rather than on a centralized server. This decentralization improves security, enhances data integrity, and can streamline processes across various industries, notably in finance, supply chain, and healthcare.<\/p>\n

DLT includes popular forms such as blockchain, which underpins cryptocurrencies like Bitcoin and Ethereum. However, its potential extends far beyond digital currencies, with applications in smart contracts, identity verification, and transaction processing. As such, regulators are increasingly tasked with addressing the rapid pace of DLT development, all while safeguarding consumers and preserving the stability of financial markets.<\/p>\n

The Joint Regulatory Framework: A Step Towards Harmonization<\/h4>\n

The recommendations submitted by French and Italian regulators mark a significant move toward the harmonization of DLT regulation across the European Union. By presenting a unified stance, these countries aim to reduce fragmentation in the regulatory landscape, which can stifle innovation and hinder startups working within the DLT space.<\/p>\n

While the document outlines specific suggestions, a few key areas stand out:<\/p>\n

    \n
  1. \n

    Risk-Based Approach<\/strong>: The regulators advocate for a proportional and risk-based regulatory framework. This approach allows for different levels of regulatory scrutiny based on the specific risks associated with various DLT applications. For instance, while consumer-facing solutions may require more stringent controls, more mature or enterprise-level solutions can potentially adhere to lighter regulations.<\/p>\n<\/li>\n

  2. \n

    Promoting Innovation<\/strong>: A core component of the recommendations centers around fostering innovation within the DLT ecosystem. France and Italy acknowledge that overly stringent regulations could deter investment and slow the pace of technological advancements. As such, they propose the establishment of regulatory sandboxes that would allow startups to experiment with DLT applications in a controlled environment, thereby facilitating innovation while maintaining consumer protections.<\/p>\n<\/li>\n

  3. \n

    Consumer Protection and Transparency<\/strong>: Another crucial aspect of the recommendations highlights the importance of consumer protection measures. This includes ensuring transparency in how DLT solutions operate, promoting comprehensive disclosures, and protecting user data. By focusing on the end-user experience, the regulators aim to build trust in DLT applications and encourage wider adoption.<\/p>\n<\/li>\n

  4. \n

    Cross-Border Cooperation<\/strong>: As DLT operates on a global scale, the recommendations emphasize the importance of cross-border cooperation among regulators. Given that many DLT solutions transcend national boundaries, harmonizing regulations will facilitate smoother operations for companies dealing with multiple jurisdictions and foster a more cohesive European market.<\/p>\n<\/li>\n

  5. Collaboration with Industry Stakeholders<\/strong>: The recommendations also underscore the significance of engaging with industry stakeholders, including technology providers, financial institutions, and consumer advocacy groups. By soliciting input from individuals experienced in the DLT space, regulators can gain valuable insights that will inform the development of practical, effective tools for regulation.<\/li>\n<\/ol>\n

    The European Commission\u2019s Role and the Future of DLT Regulation<\/h4>\n

    As the recommendations await review by the European Commission, the implications for DLT regulation in Europe could be profound. The European Commission’s response will likely set the tone for how DLT is treated across EU member states, potentially serving as a template for broader regulatory frameworks worldwide.<\/p>\n

    Given the urgency surrounding the development and regulation of emerging technologies, it is crucial for regulatory bodies to strike a balance between fostering innovation and maintaining safety and security in the financial markets. The recommendations from France and Italy may serve as a model for other nations grappling with similar challenges.<\/p>\n

    Conclusion: A Forward-Looking Collaboration<\/h4>\n

    The joint effort by French and Italian regulators delivers a clear message about the importance of embracing innovation while safeguarding financial markets and consumer interests in the advent of DLT. As these recommendations progress through the legislative process, they symbolize a significant step towards establishing a coherent regulatory framework that not only promotes growth and innovation but also ensures accountability and transparency within the rapidly evolving realm of blockchain and distributed ledger technologies.<\/p>\n

    As discussions unfold, stakeholders across Europe and beyond will be watching closely, eager to see how these recommendations will shape the future of DLT regulation and potentially influence global standards in this promising field. The integration of DLT into mainstream financial eco-systems holds immense promise, and how regulators handle these advances will undoubtedly play a crucial role in determining their success.<\/p>\n

    French and Italian regulators have jointly submitted recommendations to the European Commission regarding the governance and implementation of Distributed Ledger Technology (DLT). These recommendations highlight the need for a cohesive regulatory framework that encourages innovation while ensuring consumer protection and financial stability.<\/p>\n

    The document emphasizes the importance of a unified regulatory approach across member states to prevent fragmentation in the digital finance landscape. Key areas covered include the regulation of crypto assets, the role of custodians in safeguarding digital assets, and the establishment of clear guidelines for the operation of decentralized finance (DeFi) platforms.<\/p>\n

    Both regulators advocate for an inclusive dialogue among stakeholders, including industry participants, to shape a supportive ecosystem for DLT development. Additionally, they stress the necessity of balancing regulatory oversight with the need to foster technological advancements and competitive markets.<\/p>\n

    Overall, the submission reflects a commitment to harnessing the potential of DLT while addressing the associated risks, setting the stage for a more coherent and effective regulatory environment in Europe.<\/p>\n

    Tm-En-7<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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