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Korea’s Financial Supervisory Service Calls For Employment Of Blockchain In Share Market

The financial regulator of South Korea has recommended employing blockchain for stock trading in a research issued this week. The report by FSS (Financial Supervisory Service) mentioned the employment of blockchain in stock trading in Japan, the United States, and Australia. This was reported by the local media body Korea JoongAng Daily. The FSS called on the nation’s companies and regulatory agencies to join hands on designing such a system.

In comparison to traditional systems, the blockchain tech promises tamper-proof and safer ledger to track payments. The tech guarantees this by hosting a copy of ledgers at all machines linked to its network.

The FSS report highlighted that the blockchain application in Korea in the share market was still in the initial phase. It claimed that there must be no barricade between private companies and public institutions in designing a blockchain network. The KRX Start-up Market of Korea Exchange aims to use blockchain for settling the payments of unlisted firms trading on the platform. Korea Securities Depository has issued a test project for shareholders of listed firms on a blockchain-supported electronic voting system.

On a related note, many stock operators all over the globe have discovered the blockchain-supported system for stock trading. For example, the London Stock Exchange Group is employing the tech to issue private stocks in medium and small-sized businesses. In the same way, Nasdaq Linq, a system by the New York-located exchange, transacts the private shares in the pre-initial public offering phase.

In contrast, Australia took this tech a step further and it aims to replace its current settlement and clearing system with a distributed ledger-supported tech by the end of 2021. The new tech, on the other hand, will be invitation only.

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