Which European Regulation for Security Tokens?
13 Pages Posted: 8 Mar 2020
Date Written: February 13, 2020
Distributed register technology allows financial instruments to be represented by security tokens, opening up many economic opportunities. However, today's financial law reflects a conception of the dematerialization of securities and a technological state of the art that are both 40-year-old. The purpose of this article is first of all to identify areas of European financial law that would need to be revised so that trading of tokenized securities could be subject to the same level of regulatory requirements as book-entry securities. It then considers three possible scenarios for legislative action by the European Commission.
Keywords: DLT, blockchain, security tokens, European Union
JEL Classification: J22, K33
Suggested Citation: Suggested Citation