The distributed ledger technology (DLT) pilot system launched by the European Union has not made any progress in the past year, and no infrastructure has been authorized. Instead of providing a progress report as expected, the European Securities and Markets Authority (ESMA) sent a letter outlining five major problems, including cash on-chain issues, competitive challenges, and trading volume restrictions. It is reported that the DLT pilot system aims to temporarily exempt certain legal provisions related to funds and securities.
Other issues involved in the ESMA letter include self-hosted wallets, interoperability and retail access.
Accordingly, ESMA called for an appropriate extension of the pilot system and the relaxation of trading volume restrictions to attract more participants. (Ledger Insights)