French and Italian regulators jointly submit proposals for distributed ledger technology applications to the European Union

The French financial marekt authority (AMF) and the Italian Securities and Exchange Commission (CONSAB) have jointly submitted to the European Union Commission a proposal on the application of blockchain and distributed ledger technology (DLT).
The agencies noted that the European Union DLT Market Infrastructure Pilot Programme, which was implemented in 2023, failed to meet expectations. To improve the programme, recommendations include: establishing a more flexible regulatory framework to encourage experimentation; expanding the scope of the pilot and extending the duration of the programme; increasing infrastructure eligibility and capital limits; expanding the scope of eligible assets to include structured bonds and some derivatives; strengthening the regulatory role of the European Securities and Markets Authority (ESMA); and promoting the interoperability of DLT infrastructure with legacy systems.