Forum Views - February 2023
Welcome to interactive presentation, created with Publuu. Enjoy the reading!
Global
10
FORUM VIEWS - FEBRUARY 2023
“Spotlight on Kriptown a unique French financing platform
that allows start-ups and SMEs to strengthen their equity
capital, with the largest number of investors, through the
issuance of digital assets - a potential solution for the
growing Indian start-up and SMEs equity market.”
India Advisory Paris is specialized in helping French tech
startups expand in India, we believe that Kriptown will
expand its foot print in Europe both at the regional and
national equity market for supporting the start up and SME
growth.
The European Parliament and Council have published the
Regulation 2022/858 on a pilot regime for market infrastructures
based on distributed ledger technology (DLT Pilot Regime). This
is part of a package of measures introduced by the European
Commission to enable the development of digital finance,
particularly in terms of innovation and competition, while
reducing potential risks.
The DLT Pilot Regime establishes the conditions for permission
to operate a DLT market infrastructure and limitations on the DLT
financial instruments that can be admitted to trading and settled
on the DLT. It also sets out rules for cooperation between DLT
India Advisory Paris is sharing in this article the point of
view from Kriptown founder Mark Kepeneghian and
Kriptown Legal head Cassandre Vassilopoulos.
market operators, competent authorities, and the European
Securities and Markets Authority (ESMA).
In order to allow innovation and experimentation, the DLT Pilot
Regime allows for the trading and settlement of transactions in
crypto-assets that qualify as financial instruments under
Directive 2014/65/EU (MiFID II), also known as true digital
securities. For other crypto-assets that do not qualify as
financial instruments, such as stablecoins, e-money tokens, and
utility tokens, a dedicated regulatory framework at the EU level
is being developed. This framework, known as the Markets in
Crypto-Assets Regulation (MiCA), will provide a harmonized EU
framework for these types of assets.
Insights
FRANCE FINTECH ECOSYSTEM
Coumar ANANDA
Co-founder & Partner
India Advisory Paris
The DLT Pilot Regime allows for the digital representation,
namely the tokenization, of financial instruments on distributed
ledgers or the issuance of traditional asset classes in tokenized
form. This is expected to create new opportunities to improve
the efficiency of trading and post-trading processes. However,
existing union financial services legislation was not designed
with blockchain technology and crypto-assets in mind and
contains provisions that could limit their use. The DLT Pilot
Regime was introduced to allow for the use of such technology,
while also accounting for potential risks.
Not all financial instruments will be eligible for trading and
settlement on the DLT. Only less liquid bonds, shares and fund
units will be allowed. Furthermore, the aggregate market
capitalization of these assets shall not exceed EUR 6 billion at
the moment of admission to trading, or initial recording, of a new
DLT financial instrument. This is to ensure that the DLT Pilot
Regime allows for innovation and experimentation, while also
mitigating potential risks.
In concrete terms, the DLT Pilot Regime creates 3 new
agreements:
•
DLT multilateral trading facilities ("DLT MTF"), which are
multilateral trading facilities which admit trading of DLT
financial instruments;
•
DLT settlement systems ("DLT SS"), which are settlement
systems that settle transactions of DLT financial
instruments;
Spotlight on Kriptown a unique French
financing platform that allows start-
ups and SMEs to strengthen their
equity capital, with the largest number
of investors, through the issuance of
digital assets - a potential solution for
the growing Indian start-up and SMEs
equity market.
(Paris, France)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60