ESMA, the European Securities and Markets Authority, has published a report on the distributed ledger technologies applied to securities market.
The report released on February 7, 2017, states that ESMA wants to understand both the benefits and the risks that distributed ledger technologies (DLT) and digital currencies may introduce to securities markets, and how it maps to existing EU regulation.
ESMA also points out that DLT will unlikely eliminate the need for financial market infrastructures, however, it may render some processes redundant or change the role of certain intermediaries through time.
According to the report:
“ESMA will continue to monitor market developments around DLT to assess whether a regulatory response may be needed. Active engagement from regulators and coordination at EU and international level are paramount in ESMA’s view to ensure both that DLT does not create unintended risks and that its benefits are not hindered by undue obstacles. Meanwhile, ESMA believes that the industry should work towards solutions to address the challenges posed by the technology.”
You can read the full text of the report here.