Gold exchange may adopt an autonomous regulatory model


nnnRampage comments: gold spot transactions involving a wide range, so the relevant supervision has been a major problem. The Indian government has decided to spot the gold exchange to take self-regulatory model, the use of block-chain technology for transaction records and gold transfer. And the transaction information is encrypted, only the regulatory authority can determine the access rights. Each transaction has a unique identification code, the transaction side has ID, so the transaction can guarantee true and reliable.n
nnTranslation: Annie_Xun
nThe spot gold exchange, which was proposed two years ago, will soon become a reality because the government plans to adopt an autonomous regulatory model.n
nA source familiar with the project said the government could introduce the basic rules of the gold exchange in early November. The discussion of this issue has already been carried out, and all the rights and interests of the government and the composition of the Standing Committee have been carefully examined to consider this issue.n
nThe regulation of these exchanges has been unresolved because the spot exchange is a national issue. And gold has currency characteristics, or industry investment and investment tools.n
nThe government is not in a hurry to supervise, and bank regulators Reserve Bank of India (RBI) and market regulators (Sebi, Securities and Exchange Board of India) also try not to monitor. However, when the government received advice on the self-regulation of these exchanges and the use of block-chain technology, the government recognized it.n
nThe idea of ​​self-regulated exchanges and the use of block-chain technology was first presented by Sudhesh Nambiath, principal analyst at GFMS TR, at Indian Merchant Chambers in India.n
nBlock chain technology is the key to the success of encrypted currency bitcoats. Although the bitcoin is unregulated in the currency, the gold exchange’s supervision will ensure that the government agency needs when the block-chain data can provide the details of the exchange.n
nIn the gold exchange, gold transfer to the exchange of each transfer can be registered in the chain chain, including the subsequent transfer and sales. Each exchange can create a new entry in the block chain public record, but the exchange’s supervision can determine the record’s access.n
nGold can only use block-chain technology, which is similar to China’s gold exchange model, if it sells only on the spot exchange platform. The use of block chain can be a small amount of gold records, and even individuals can also buy gold on the exchange platform. However, the subsequent stage can be achieved. In the early stages, banks and institutions such as India’s gold-importing banks and refineries will be traded on exchanges, and traders can also buy them here. The exchange will be an electronic trading platform, both the exchange and the treasury, are part of the chain.n
nAfter a large number of large gold bars converted into small gold bars, will be mandatory in the BIS authorized refinery to extract, these gold bars are also added after the registration in the block chain platform. Each retailer will purchase from the same platform for a long time, and each spot will be recorded on the chain.n
nBlock chain registration will not allow anyone to tamper with records, each buyer and seller have a unique ID, are anonymous.n
nInformed people talk about anonymity, and other identified issues include the Indian delivery standards and the London Bullion Market Association (London Bullion Market Association) to develop standards, are adjusted according to the situation in India, while the use of codes of conduct to ensure that the exchange is responsible for the transaction Then
nIn addition to the spot exchange, NIIT Aayog’s former finance minister, Ratan Watal, chairman of the committee will hold its first meeting next week to discuss a comprehensive gold policy, in addition to the Gold Exchange, as well as delivery standards and responsible gold monetization programs.n
nAt present, only BSE and Indian Gold and Silver Jewelry Association (Indian Bullion and Jewelers Association) jointly proposed the establishment of spot gold exchange.n

Leave a Reply

Your email address will not be published. Required fields are marked *