As of today, the European Union applies the so-called. DLT Regulation

As of today, the European Union applies the so-called. DLT Regulation (Regulation on a pilot regime for market infrastructures based on distributed transaction database technology). This piece of legislation establishes a 6-year pilot regime in the European Union which, among other things, allows for the trading and settlement of transactions in tokenised financial instruments. Based on our previous experience at Highgate Law & Tax in the tokenization of assets in the Slovak environment, e.g. with standard STO, we were faced with a legal regime that was not adapted for transactions within the “crypto world”. However, the DLT Regulation will allow, for example, the issuance of tokenised bonds or tokenised shares in Slovakia. It thus opens new doors not only for issuers of these financial instruments, but also for existing financial market entities (central depositories, securities dealers) to (I firmly believe) trade financial instruments transparently and flexibly in the increasingly used DLT environment. Together with Peter Varga, we have written a short article on the DLT Regulation, in which we explain in more detail what tokenised financial instruments are, describe the infrastructure that the DLT Regulation puts in place, and discuss the usability of the pilot regime in practice.