The <a href="https://www.cryptoknowmics.com/news/wells-fargo-and-hsbc-expand-dlt-solution-to-include-offshore-yuan">distributed ledger technology (DLT)</a> financial sector application process has been outlined by <a href="https://www.cryptoknowmics.com/news/eu-commission-issues-proposal-for-study-of-automated-defi-supervision">European Union (EU)</a> regulators, paving the way for a new pilot program to begin in March of 2023.
<h2>EU Approves Rules for Distributed Ledger</h2>
The technology behind <a href="https://www.cryptoknowmics.com/news/amber-group-acquires-300-million-via-fundraising">cryptocurrency</a>, according to lawmakers in the EU, may eliminate intermediaries when trading financial assets like stocks, bonds, and other securities. However, there have been questions over whether average retail investors would be able to reap the benefits in practice because they will need to take a test beforehand.

The EU guideline, <a href="https://www.esma.europa.eu/press-news/esma-news/esma-provides-guidance-applicants-under-dlt-pilot-regime" target="_blank" rel="nofollow noopener">released</a> Thursday, advised applicants to accurately describe to the national competent authority the experiences that establish an adequate degree of understanding of the operation of the distributed ledger technology when network users are average people as opposed to an investment bank, for example.
<h2>Concerns Regarding the Barriers</h2>
There have been concerns that this barrier may dissuade people from utilizing DLT instead of conventional methods of entering financial markets, particularly if each EU country handles it differently.

The European Securities and Markets Authority's (ESMA) recommendations are not required, but national authorities must justify any deviation from them. ESMA stated that although these, along with the other regulation amendments, go into effect in March, applicants are strongly advised to anticipate the official entrance into the effect of the guidelines. The new regime is essentially open to both current markets and fresh competitors. According to ESMA, entities that represent investment firms, trading platforms, and securities depositories submitted comments on the draught.

EU Approves Financial Trading Rules for Distributed Ledger Before Pilot

The distributed ledger technology financial sector application process has been outlined by EU regulators, paving the way for a new pilot program.

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EU Approves Financial Trading Rules for Distributed Ledger Before Pilot

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