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---
title: "ESMA Q&A 1271 — Q&A — Exemption from CSDR [Answer Published]"
shortTitle: "ESMA Q&A 1271 — Q&A — Exemption from CSDR [Answer Published]"
answer_id: ESMA_QA_1271
topic: "Exemptions for DLT market infrastructures"
status: "Answer Published"
type: qa
instrument_type: qa
authority: ESMA
binding: false
binding_character: non_binding
legal_status: in_force
regulation: "DLT Pilot"
dlt_level3: true
mica_level2: false
legal_basis: "DLT Pilot"
date: 2 June 2023
source_link: https://www.esma.europa.eu/publications-data/questions-answers/1271
lifecycle: "Answer Published"
text_version: "ESMA Q&A register, 2 June 2023"
source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1271"
check_status: matched
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last_checked: 2026-10-26
checked_against: "the ESMA publication"
source:
  prepared_by: "European Commission"
  published_by: "ESMA"
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    prepared_by: "Answer provided by the European Commission"
    locator: "ESMA Q&A entry ESMA_QA_1271, first line of the answer field"
document_type: "qa_answer"
legal_nature: "not_legislation"
addressees: "not stated in the document"
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    question_submitted_on: "ESMA Q&A Excel export ESMA_QA_1271, column 'Date of submission'"
lifecycle_label: "Answer Published"
---

**Answer prepared by the European Commission, published in the ESMA Q&A tool · not legislation · published 2 Jun 2023 [Answer Published]**

*Answer Published · ESMA Q&A register, 2 June 2023 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1271)*

| | |
|---|---|
| **Full title** | ESMA Q&A 1271 — Q&A — Exemption from CSDR \[Answer Published\] |
| **Prepared by** | European Commission |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_1271 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 2 June 2023; question submitted 2 June 2023 |
| **Legal basis** | DLT Pilot |
| **Related instruments** | None recorded |
| **Text on this page** | Word for word — the full text of the ESMA publication |

**Exemption from CSDR**

### Question

Do the applicants to the DLT SS/DLT TSS status need to apply for the exemption from the application of Article 40 of CSDR, as set out in Article 5(8) of DLTR, whenever they use tokenised money, independently of whether it is central bank tokenised money or commercial bank tokenised money?

***

### Answer

\[ESMA70-460-189 - Heading 9 - Question 2\]

Answer provided by the European Commission in accordance with article 16b(5) of the ESMA Regulation.

DLT SS/TSS applicants need to request the exemption from Article 40 of CSDR, as set out in Article 5(8) of DLTR, for settling the cash leg of a transaction differently than as laid down in Article 40 CSDR. That in particular means that an exemption will be necessary if the cash payments are not settled through accounts opened with a central bank of issue of the relevant currency or accounts opened with a credit institution in accordance with Title IV of CSDR.

The notion of account should be understood as being technology-neutral in this context.

Disclaimer in relation to the answers provided by the European Commission in accordance with Article 16b(5) of the ESMA Regulation: these answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1271)