Uitvoeringsbesluit DLT pilot regime verordening

Decree of 19 June 2023 was published in the Official Gazette of the Netherlands. It contains legal amendments related to financial regulations, to implement Regulation (EU) 2022/858 concerning a pilot scheme for market infrastructures based on distributed ledger technology (DLT pilot regime).
DLT is a way to record property like money or assets, spread across a network of computers, with blockchain being a well-known form. Crypto assets are a major application of DLT in finance. Some crypto assets fall under EU law as financial instruments, subjecting them to various regulations.
To address the challenges posed by DLT and crypto assets, the Pilot Regime is introduced, aiming to develop financial instruments and DLT while maintaining investor protection, market integrity, and transparency. The regulation focuses on three entities: DLT trading facilities, DLT settlement systems, and DLT trading and settlement systems, allowing both existing and new entrants to participate. Exemptions from existing Union legislation may be granted, subject to conditions. Authorities can take corrective action if necessary.
This implementation decree designates the Netherlands Authority for the Financial Markets (AFM) and the Dutch Central Bank (DNB) as competent authorities for specific articles. AFM will inform DNB in certain cases, and DNB can make binding recommendations. These recommendations are not subject to appeal, but legal protections for parties involved remain.
Both AFM and DNB are capable of implementing the regulation, with limited additional costs, as the regulation itself creates most obligations. The regulation has no direct impact on the regulatory burden, as it directly applies without needing additional Dutch legislation.
The decree came into force the day after its publication in the Official Gazzette, thus on 7 July 2023.