Digital economy is on the road to decentralisation through the use of DLT, which is of particular interest for the financial industry. In essence, DLT is a decentralised “data base” which allows all its users to have the same information. All participants have a copy of the same data base which is updated automatically.
Neutral bodies such as FMIs are well positioned to develop forward looking solutions together with other actors in the financial industry due to their expertise, robust IT systems, their highly regulated processes, and the established trust.

Deutsche Börse Group welcomes the different regulatory developments fostering innovation regarding DLT/Blockchain and the use of crypto-assets, at both the EU and national levels, with the so called “Digital Finance Package” starting the political processes on: 

• Regulation on the markets in crypto-assets (MiCA); 
• Regulation on a pilot-regime on DLT market structure; 
• Targeted changes of EU financial markets regulations referring to crypto-assets qualifying as financial instruments;  
• Digital operational resilience act (DORA);
• Introduction of electronic securities in Germany and adjustments to solutions proposed in DORA and Mica (Finanzmarktdigitalisierung); and 
• Law facilitating dematerialisation in Luxembourg.

Nevertheless, parts of the European Commission´s proposal for the Pilot regime still raise some questions and we believe that some adjustments will be necessary to ensure consumer protection, market integrity, and a level playing field. Experience from past financial crises has shown that fundamental principles such as consumer protection, financial stability or the conduct of an orderly monetary policy must not be compromised and must be ensured in the interest of society, irrespective of the technology used, and also in the context of a testing-phase.

These principles should not be invalidated by the mere reference to the promises of new technologies. Innovation and new ideas must be allowed to mature within a stable regulatory framework which reconciles competition, investor protection, and financial stability.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.