site.btaMPs Adopt on First Reading Amendments Related to Market Infrastructures Based on Decentralized Ledger
The National Assembly passed on first reading Friday amendments to the Markets in Financial Instruments Act. The amendments introduce measures to implement an EU regulation on a pilot system of market infrastructures based on decentralized ledger technology.
The technology provides an alternative way of storing information in databases, where instead of being stored in one place, the database is stored in a network of computers independent of each other, with everyone in the network having access to all the information and, depending on their personal rights, being able to add to it. An example of decentralized registry technology is the so-called blockchain, in which information is grouped into blocks that are linked chronologically to form a chain. The entire chain, in addition to being stored in a decentralized manner, is protected by sophisticated algorithms so that the security of the data is maximized.
The regulation introduces uniform requirements for market participants wishing to be allowed to operate a market infrastructure based on decentralized ledger technology. For up to six years, participants will be exempted from certain specific requirements of EU financial services legislation.
Тhe Financial Supervision Commission is the competent authority to grant and withdraw the special authorizations.