China’s Regulations Require Amendment To Allow Use Of DLT In Stock Market
Uses of Distributed Ledger Technology
The research paper also highlighted the core benefits of adopting the distributed ledger technology in China’s financial ecosystem. One notable benefit listed is the increment in the settlement efficiency by changing the existing T+1 model under which a typical transaction settlement takes place one working day after the execution of the order.
While making reference to the current works being done in other financial markets including Australia and Hong Kong, the SSE also highlighted in its report two potential sectors where DLT may offer additional benefits to China’s financial sector. The report established that the general global consensus is that DLT would bring about revolutionary changes in the financial ecosystem. It was further stated that its initial uses would be for over-the-counter issuance of securities and trading of securities, and also for making settlements after trading.
Uses of DLT subject to Regulatory Obstacles
In conclusion, the paper suggested that such regulations should take into consideration the changing technology, and regulators should also approach DLT as a crucial area to be studied as they proceed in the development of a strong regulatory framework that allows financial innovations to thrive.
https://www.asiacryptotoday.com/japans-fsa-responds-to-news-about-the-agency-amending-its-crypto-exchange-regulations/