Blockchain & Financial Markets: The European Commission takes a step in favour of innovattion

This European Commission project aims to position the European Union as a reference jurisdiction in this field, through a novel regime of targeted regulatory exemptions. This “pilot regime” would aim to support the development of security tokens (financial securities registered on a blockchain). However, achieving this objective will require the involvement of all stakeholders to ensure a fair balance between the issues of attractiveness, competitiveness, investor protection and financial stability.  

Proposing such a pilot regime is a major step in favour of innovation.

Gide 255 sets forth here a review of the European Commission’s innovative approach, as well as insight into its content, which is essential for all those who would like to become involved in the upcoming negotiations.

It also raises several questions:

• Is the scope of players eligible for the pilot regime broad enough? Does it take sufficient account of new players in the financial sector?
   
• Is the type of technology targeted by the Commission suited to player practice and national ambitions?
   
• What new obligations are emerging for eligible players?

Are you ready to negotiate? Gide 255 identifies current and upcoming challenges here.