New Format of Securities: Securities Registered in Distributed Ledgers and Their Regulation in Certain European Countries

Abstract

Like many other subject areas, technological progress is also transforming the world of securities. New technological solutions and opportunities may lead to the emergence of new institutions, including new legal institutions. The distributed ledger technology enabling the operation of well-known cryptocurrencies is – among many other things – a tool suitable for the registration of securities; although it has not yet become widespread, some countries have already established the legal framework for its application. This study presents a comparative analysis of existing European regulatory solutions to demonstrate the options available for establishing an effective regulatory framework for securities recorded on a distributed ledger and the benefits of introducing such a securities registration system from both a regulatory and a practical perspective.