South Korean regulator Financial Supervisory Service calls for a Blockchain-based stock trading system. It notes that the cooperation between public and private companies can play a vital role in the success of this project.
3 August, AtoZ Markets – The financial regulator of South Korea, the Financial Supervisory Service, has appealed for a Blockchain-based stock trading system. The step from the FSS emerges as a part of a new study that has been published by the agency this Thursday.
South Korean Regulator Suggests Blockchain-based stock trading system
The study reportedly calls for South Korean regulatory bodies and companies to join their forces to develop the proposed the Blockchain-based stock trading system. The study also examines the use of the Blockchain by stock operators globally.
The usage of Blockchain in stock trading is not a new practice, as it has already been established in 2016. That time, the Australian Securities Exchange (ASX) has introduced the distributed ledger technology to its settlement and clearing system, called CHESS. The organization stated that it plans to launch the new system in 2020.
In the meantime, the US stock market Nasdaq has revealed the Blockchain-based private securities platform last year. Likewise, the London Stock Exchange has tested the Blockchain technology for replacement of the paper certificates in 2017. Another country in this list is Japan – Japan Exchange Group (JPX) has established a consortium to examine Blockchain applications to capital markets infrastructure in 2017.
Cooperation is the key to success
The study from the FSS has reportedly highlighted that the examination of Blockchain use cases in South Korea is in at the very early stages as of the moment. The cooperation between public and private companies can play a vital role in the success of any future Blockchain-based system.
The regulator has been quoted as saying:
“There should be no barrier between public institutions and private companies in developing a blockchain system.”
Last month, the government of South Korea has announced its plan to review the current tax rules in order to advance the benefits for companies that work on the development of the emerging technologies, such as Blockchain. The authorities are looking into the long-term plan that focuses on the push for innovations.
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