South Korea’s Financial Regulator Suggests Blockchain System For Stock Tradingbr>
South Korea’s Financial Supervisory Service (FSS) is urging local regulatory agencies and companies to collaborate on the development of an integrated blockchain stock trading system.
In a new study published by the FSS on Thursday, the agency examined the use of the blockchain by stock operators around the globe, including existing initiatives in the US, Japan, UK and Australia, among others. While the report claims that blockchain is still in its early stage, the agency believes that the technology would increase the efficiency, integrity and security of tracking and storing transactions.
The financial regulator specifically examined US stock exchange Nasdaq’s blockchain platform, called Nasdaq Linq. The platform uses blockchain to power capitalization tables, which private firms use to manage shares in their companies. The FSS also looked into the London Stock Exchange Group’s blockchain platform designed to digitize both securities ownership and the capital structure of small to medium sized businesses (SMEs).
The FSS noted that the exploration of blockchain use cases in the country has only recently started, taking note of plans by the the state-run Korea Securities Depository to build a blockchain system using an electronic voting system used by shareholders of listed companies.
“There should be no barrier between public institutions and private companies in developing a blockchain system,” the regulator said.