The released report highlighted the countries that have adopted the system. In an official report dated August 2, the Financial Supervisory Service of South Korea admonished the regulatory agencies in the country as well as companies to work towards the development of an integrated blockchain system for stock transactions.
In the report, the FSS carefully analyzed the use of blockchain technology by some international stock exchange operators. Specifically, the FSS emphasized on systems such as the US, UK, Australia,Japan among others that have taken initiatives in this sector.
Advantage of Blockchain-based system
The report stated that a blockchain-based system which is immutable would increase the integrity, efficiency as well as the security of tracking and storing the transactions. In addition, the report notes that the current traditional systems that utilize a centralized ledger system are not as efficient as those that use the decentralized blockchain system, and are also more vulnerable to hacking activities.
Utility of Blockchain in different jurisdictions
The report considered how Nasdaq, a U.S. Exchange, utilizes its Nasdaq Linq blockchain system to keep records of its private market. Further, it examined the blockchain-powered platform of the London Stock Exchange Group for issuing private shares. It also looked into the use of blockchain for capital market infrastructure by a Japanese consortium consisting of 36 financial companies.
The Financial regulator also examined the plans of the Australian Securities Exchange to subsequently fully replace its current clearing and settlement system with a permissioned and distributed ledger-based system.
The report highlighted that Korea’s blockchain applications in this wise are currently at an early stage. It made mention of the plans of the Korea Exchange’s KRX Start-up market to foster the implementation of the technology for settling transactions of unquoted companies, and also a blockchain trial project being developed by Korea Securities Depository run by its states.
In conclusive, what exactly FSS plans is unclear at this stage! What’s your opion on this?