South Korean Financial Supervision Services is working on using blockchain technology for stock transactions
According to a recent report from the South Korean Financial Supervision Service (FSS), it is essential for regulatory agencies and local companies to consider starting the development of a blockchain-based Financial Transactions Supervision Service. According to the FSS, this study was made with the propose of “establishing long-term planning and continuing to promote pilot projects” and investigating new applications for blockchain technology in capital markets.
The report states that a blockchain-based system would increase the efficiency, integrity and security of the tracking and storage of stock transactions, exponentially. According to the FSS, centralized ledgers are more vulnerable and less effective in avoiding and neutralizing hacking, cracking and other forms of cyber-delinquency.
The investigation was focused in analysing previous results that international stockbrokers, such as the United States, Japan, the United Kingdom and Australia, have obtained with the application of blockchain-based transaction systems.
The Korean authority analysed different companies, consortia, and markets all over the world in order to obtain trustworthy information in different kinds of economics situations and systems. When analyzing the use of technology in the United States, the FSS studied the Nasdaq stock market and the results of the Nasdaq Linq a system designed for maintaining records for internal market.
In countries like the United Kingdom and Japan the investigators analysed the London Stock Exchange Group platform, blockchain technology for the issuance of private shares and a Tokyo-based consortium with the presence of more than 36 financial companies that uses a blockchain-based capital market infrastructure respectively.
In Australia the selected institution was the Australian Securities Exchange and its ongoing plan to completely replace its existing compensation and settlement system with an a distributed ledger alternative.
This can be considered another step forward for blockchain technology as it’s decentralized characteristics are proven to be beneficial for the efficiency and security of financial services.
by Samuel Larreal