Chamber Submits Industry Comments to European Securities and Markets Authority
Washington, D.C. September 2, 2016 –The Chamber of Digital Commerce has submitted comments to the European Securities and Markets Authority (“ESMA”), in response to its discussion paper titled “The Distributed Ledger Technology Applied to Securities Markets,” in which it asks market participants various questions regarding distributed ledger technology (“DLT”) in the securities markets.
ESMA is an independent European authority that was established to protect investors and promote stable and orderly financial markets. ESMA is developing EU-wide Technical Standards that will become the framework for any anticipated regulations.
Given the impact regulation applied to DLT in the EU will have on the development of DLT at a global level, the Chamber submitted comprehensive comments to ESMA. Over a dozen Chamber member companies provided input and interviews for the Chamber’s comments, which were prepared with guidance from Kari Larsen, counsel at Reed Smith LLP.
“Blockchain technology has the potential to significantly improve many business processes within the global securities market,” said Perianne Boring, Founder and President of the Chamber of Digital Commerce. “Regulators should not be too quick to act individually to respond with prescriptive legislation that could stifle innovation.”
Instead the Chamber urges ESMA to coordinate efforts with other regulators to understand the new technology, and develop international standards and best practices as the technology matures. With global standards in place, national regulators will have a basis to develop local legislation and legal treatment.
The Chamber also raised industry-wide concerns about the EU’s data privacy regulations. The General Data Protection Regulation (GDPR)’s “right of access” and the “right to be forgotten,” for example, may impact the deployment of permission-less DLT networks. Regulatory flexibility that enables differing methods of compliance will be critical for the uptake of blockchain technology in the EU.
About the Chamber of Digital Commerce
The Chamber of Digital Commerce is the world’s leading trade association dedicated to promoting the understanding, acceptance and use of digital assets and blockchain-based technologies. Headquartered in Washington, D.C., the Chamber is the founder of the Smart Contracts Alliance, the Blockchain Alliance, the Global Blockchain Forum and many other key industry initiatives. For more information, please visit DigitalChamber.org or follow us on Twitter: @ChamberDigital.
Chamber Media Contact:
Paragon Public Relations