ESMA Provides Guidelines for Participating Companies to Tokenized Securities Pilot

The European Securities and Markets Authority is developing criteria to help market players prepare for the tokenized securities sandbox. ESMA worked with ten financial institutions, trading venues, and central securities depositsories to develop the rules. Although they are not mandatory, participants are strongly encouraged to follow them. According to ESMA, the recommendations will take effect on March 23rd, which coincides with the launch of the sandbox. Personal indebtedness or bankruptcy would also impact the good reputation necessary to participate.Experience in the industry is also required. The EU institutions’ legislation regarding the DLT Pilot Regime requires that participants have the ability, competence, expertise and understanding of the technology. In March, the EU will launch a pilot program to allow market participants to test financial products based upon decentralized ledger technology (DLT). This pilot is part of the EU’s 2020 Digital Finance program. The ESMA will oversee the initiative. The ESMA will oversee the initiative. We encourage you to do your own research before investing.Join us to keep track of news: coincu.comHaroldCoincu NewsTags: DLTESMAEuMiCAsandbox